Circulars/Notifications / Infrastructure, Housing & SME Finance Department  

 IH&SMEFD Circular No. 05 of 2017
August 25, 2017

The Presidents/Chief Executives,
All Banks /DFIs

Dear Sir/Madam,

Refinance and Credit Guarantee Scheme for Women Entrepreneurs in Underserved Areas

Enhancing financial inclusion of women is one of the priority areas of the State Bank of Pakistan. In an effort to improve access to finance for women entrepreneurs in the underserved areas of the country, a refinance and credit guarantee scheme is being launched. Following are the main features of the scheme:

Target market

Women entrepreneurs in underserved areas

Maximum financing amount

Rs 1.5 million

Financing tenor and grace period

Upto 5 years with grace period of upto 6 months

End user mark-up rate

Upto 5% per annum

SBP’s refinance rate


Purpose of financing

Setting up of new businesses or expansion of existing ones

Risk coverage

60% of outstanding principal

Collateral requirements

Preferably on the basis of personal guarantee of the borrower

Limit allocation

Atleast 20% of the allocated limit fixed for lending to women entrepreneurs in Balochistan

Women empowerment through financial inclusion is one of the desirable outcomes of the subject scheme and therefore the banks/DFIs are advised to take effective measures to facilitate eligible women borrowers under the scheme with the aim to maximize the outreach of this facility.

The banks/DFIs should follow the instructions provided in the attached scheme to apply for limits to Infrastructure, Housing and SME Finance Department, State Bank of Pakistan by September 29, 2017.

The attached scheme contains all the details as well as the reporting mechanism.

The scheme will be effective from the date of the issuance of this circular.


(i) Scheme
(ii) Refinance Application Documents
(iii) Reporting Template

Yours sincerely,

(Syed Basit Aly)


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