The financing extended to businesses with maximum sales turnover of Rs 2 billion, under SBP refinance scheme to support employment and prevent layoff of workers is eligible for Risk Sharing Facility by the GOP

Financing extended to SMEs and small corporates with maximum sales turnover of Rs 2 billion, under SBP refinance scheme to support employment and prevent layoff of workers is eligible for Risk Sharing Facility by the GOP.

GOP will bear 40% first loss on disbursed portfolio (principal portion only) for eligible borrowers.

Note: In case of non-repayments, after being classified as ‘Loss’ (as per the classification criteria laid down under respective SBP Prudential Regulations, credit loss subsidy claim will be paid by the GOP).

i) GOP will bear 60% first loss on disbursed portfolio (principal portion only) for eligible SME borrowers with turnover of upto Rs 800 million.

ii) GOP will bear 40% first loss on disbursed portfolio (principal portion only) for eligible non - SME small corporates borrowers.

Note: In case of non-repayments, after being classified as ‘Loss’ (as per the classification criteria laid down under respective SBP Prudential Regulations, credit loss subsidy claim will be paid by the GOP).

Security arrangements will be as per executing agency’s own credit policy after taking into account the factor of this risk sharing facility. Hence, banks are encouraged to facilitate collateral deficient borrowers. In any case, banks will not be asking for additional collaterals over and above 60% of the principal amount and markup thereon.

Security arrangements will be as per executing agency’s own credit policy after taking into account the factor of this risk sharing facility.

Hence, banks are encouraged to facilitate collateral deficient borrowers. In any case, banks will not be asking for additional collateral over and above the non-guaranteed principal portion and markup thereon.