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Incentive Schemes for SMEs & Other Sectors |
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Risk Coverage Scheme for Small and Medium Enterprises (SMEs) |
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Considering the critical importance of SMEs in inclusive economic growth and employment creation, the Government of Pakistan, on the recommendation of the SBP, has approved a Risk Coverage Scheme for securing banks’ fresh exposure against SMEs. |
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Under the scheme, Government will absorb credit loss (principal portion only), 20% first loss coverage against banks’ fresh exposure to Small Enterprises and 10% first loss coverage against banks’ fresh exposure to Medium Enterprises. |
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SMEs (new and existing businesses) as per SBP definition of SME finance Prudential Regulations will be eligible under the scheme. |
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All types of loans including working capital loans/running finance and long term loans will be eligible under the scheme. |
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The tenor of loans will be upto 5 years. |
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The loans will be classified as loss on the time based criteria as mentioned in SBP Prudential Regulations for SME Finance. |
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For detailed features of the scheme, please click the following circular issued by SBP: |
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https://www.sbp.org.pk/smefd/circulars/2024/C2.htm |
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For Frequently Asked Questions (FAQs), please click here. |
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