The State Bank of Pakistan (SBP) on Monday introduced a financing scheme for Small and Medium Enterprises (SMEs), enabling them to get loans without collateral.
The SBP said the scheme had been launched to improve the SMEs’ access to finances in collaboration with the government aimed at enabling the businesses that cannot offer security or collateral to access bank finance.
“This initiative has been brand named, ‘SME Asaan Finance’ or SAAF to emphasise the SME facilitation feature of this scheme to provide clean lending i.e. lending without collateral to SMEs,” said the central bank.
Under the scheme, the SBP will provide refinance for three years to the selected banks. After three years, the refinance will be repaid by banks in 10 equal yearly instalments.
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