Circulars/Notifications - Agricultural Credit & Microfinance Department  
 AC&MFD Circular No. 03 0f 2017
December 22, 2017 


The Presidents/Chief Executive Officers,
All Microfinance Banks

Dear Sirs,

Enhancement of Maximum Loans Size for Microenterprises

Please refer to the Revised Prudential Regulations for Microfinance Banks (MFBs) issued vide AC&MFD Circular No. 03 dated June 10, 2014.

2.      In order to enable MFBs to serve the microenterprise credit requirements, it has been decided to enhance the loan size to Rs. 1.0 million for microenterprises employing up to 25 individuals (excluding seasonal labor). However, the existing limit of 40 percent on enterprise lending (as percentage of Gross Loan Portfolio) shall remain unchanged. Further, the maximum exposure limit for borrowers who are able to avail both general and microenterprise loans shall not exceed Rs. 1.0 million.

3.      The enhanced loan size will be allowed to those MFBs which have graduated from pilot microenterprise lending programs to commercial scale. However, prior to extending microenterprise loans exceeding Rs. 500,000/- these MFBs shall apply to this department for approval. SBP shall grant approval based on satisfactory assessment of the capital position and readiness level of the applicant MFB.

4.      All other instructions on the matter will, however, remain unchanged.

Please acknowledge receipt.

Yours sincerely,


( Noor Ahmed )
Head of Department

Back to Circulars Page
About SBP
Economic Data
Press Releases
Laws & Regulations
Monetary Policy
Help Desk
SBP Videos
Contact us
What's New?
Online Tenders
Web Links

Educational Resources
Regulatory Returns
Rupey ko Pehchano
Zahid Husain Memorial Lecture
Best view Screen Resolution : 1024 * 768
Copyright © 2016. All Rights Reserved.