The Presidents/ CEOs

All Microfinance Banks, Non-Bank Microfinance Companies,

Non-Bank Finance Companies

Dear Sir/ Madam,

The Line of Credit Fund

In order to address funding constraints of the microfinance sector, SBP has set up a Line of Credit (LoC) Fund for Microfinance Banks (MFBs) and Non-Bank Microfinance Companies (NBMFCs) for onward lending to microfinance borrowers. In addition, SBP will provide funds to Non-Bank Finance Companies (NBFCs) established for wholesale lending to MFBs and NBMFCs.

2. The eligible institutions are encouraged to apply as per the “Rules for the Line of Credit Fund” attached herewith. Further, the Participating Financial Institutions will have to comply with the requirements of “Environmental and Social Risk Management Guidelines.”
3. Please acknowledge receipt.

Encl:

Annexure 1: Rules for the Line of Credit Fund

Annexure 2: Environmental and Social Risk Management Guidelines