Circulars/Notifications - Infrastructure, Housing & SME Finance Department  
 IH&SMEFD Circular No. 05 of 2016

July 15, 2016 

The Presidents/Chief Executives,
All Banks

Dear Sir (s)/Madam,

Soft Loans under Prime Minister’s National Health Program (PMNHP)

Government of Pakistan has launched Prime Minister’s National Health Program (PMNHP) with the prime objective of providing health insurance facility to poorest segments of population. In this respect, facility of soft loans under PMNHP is being launched for private hospitals empanelled under PMNHP to facilitate them in upgradation of their facilities for provision of better treatment services to the target population.

Salient features of the soft loans under PMNHP as approved by the Government of Pakistan are reproduced.

S.N Parameter Description
1 Brief Description
Loans under PMNHP will be offered to private empanelled hospitals listed for up-gradation of their facilities including equipment purchase, operation theatre up-gradation and improvement in emergency services as envisioned in PMNHP.
2 Eligibility Criteria

Hospitals, Clinics, Health Care units empanelled/shortlisted under PMNHP

  • Qualified MBBS/BDS Doctor from an institution recognized by PMDC.
  • Clinic/Hospital/Lab registered with PMDC and PMA
  • Sole Proprietor, Partnership firms, Private and Public Limited Companies, other bodies/trust running hospitals and empanelled in PMNHP will be provided soft loans/financing under PMNHP.
3 Security/ Collateral
Hypothecation of assets/equipments to be financed.
Mortgage of Immovable Property as secondary collateral.
4 Debt-Equity ratio

The borrowers’ contribution of equity could be in the form of

1. Existing assets and property offered as collateral subject to valuation by banks approved valuators, or

2. Cash which will be required after approval of the loan

5 Loan Type
Term Loan/Demand Finance.
6 Loan Size
Upto Rs. 10 M.
7 Loan Period
Maximum Tenor of loan is eight (8) years including grace period of upto one year.
8 Drawdown
Loans to be disbursed in single tranche.
9 Mode of Repayment
Equal Monthly Installments (EMI).
10 Grace period
Grace period will run from the date of loan disbursement. During grace period, EMI shall be composed of service charges/mark-up only.
11 Pricing
6% fixed for borrower. Government will pay the difference of the cost at KIBOR+500bps.
12 Risk Mitigation
Government will bear upto 5% losses on the portfolio of the banks under this Program.
13 Executing Agency
National Bank of Pakistan (NBP) and First Women Bank Limited (FWBL) Other banks are encouraged to participate in the Program.
14 Application Form

The Form would be both in English and Urdu; and require minimum essential information with simple format.

The processing time will not exceed 15 days, after receipt of complete information/required documents from the applicant, and will be so stated clearly in the application form; and

The forms would be readily available both in branches and through websites of the Executing Agencies.

Non-refundable form processing fee will be Rs. 1,000 (One Thousand).

15 Monitoring
SBP will publish consolidated information about the loans extended under PMNHP as a sub-section of PMYBL Quarterly Review for information of the public on its website.
16 Geographical Distribution
The facility will be initially launched in 23 selected districts by Office of PMNHP and will subsequently cover whole of the Country. PMNHP Office will provide to Executing Agencies, the list of private empanelled hospitals eligible for soft loans/financing under PMNHP.
17 Subsidy Payment
GOP Subsidy payments to Executing Agencies will be made on quarterly basis on similar lines as being implemented under PMYBL Scheme.

Soft loans facility under PMNHP is initially being launched through National Bank of Pakistan and First Women Bank Limited. Other banks are advised to gear up their systems and participate in PMNHP soft loans initiative.



Yours faithfully,

(Ghulam Muhammad)



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