Small Credit

[Audio] Small enterprise ( SE) financing and credit guarantee scheme for special persons.

[Audio] Presentation Flow Introduction Scope and & Eligibility Tenor Participating Financial Institutions ( PFIs) Rate of Markup Guarantee/ Risk Coverage Allocation of Refinance Limits Grant of Refinance Loan Repayment Reporting Mechanism Other Terms and Conditions.

[Audio] Introduction: Scheme issued through IH&SMEFD circular No 07 of 2019 To improve socio-economic life of the special persons Improving access to finance for PWDs Financing facilities to special persons to meet credit needs of their businesses. Refinance will be provided by State Bank of Pakistan at 0[break]%.

[Audio] Scope and Eligibility; Special persons holding CNIC with disability logo/ symbol Maximum financing limit will be Rs. 1.5 Million. Financing may be provided for Setting up of new business enterprises For expansion of existing ones. Financing may be provided to eligible borrowers preferably against their personal guarantee..

[Audio] Tenor 1. Up to 5 years including grace period of up to 6 months..

[Audio] Participating Financial Institutions: 1. All commercial banks and Development Finance Institutions ( DFIs) can participate in the scheme..

[Audio] Rate of Markup End user rate will be up to 5% per annum (p.a.) SBP will provide refinance to PFIs at 0%..

[Audio] Guarantee/ Risk Coverage The risk coverage of 60% against outstanding principal portion only. Eligible for guarantee claims on case to case basis once the loan is categorized as ' Loss'. Loss is defined as loans ( principal or markup) overdue by 18 months due date..

[Audio] Allocation of Refinance Limits SBP shall allocate limits to PFIs under the scheme on receipt of request. Limits will remain valid till finalization of revised limits by SBP. Applications for sanction of limits shall be sent by the interested banks/ DFIs to the Director, Infrastructure, Housing & SME Finance Department..

[Audio] Grant of Refinance Claim refinance monthly on consolidated basis. Claim process: Application submission to office of SBP BSC 5th working day of every month claiming refinance against all the loans disbursed in the previous month. SBP BSC will approve refinance within 7 working days of receipt of complete information..

[Audio] Loan Repayment Equal monthly or quarterly installments after grace period by borrower ( Max. six months) SBP BSC offices will recover the loan amount from PFI's account on the due dates as reported in the original repayment schedule. Normal rate to charge on overdue principal amount in case borrower fail to pay the loan amount. Bank are free to take other actions to recover the loan amount. SBP will continue to recover the principal amount on the due dates as per the repayment schedule irrespective of status of loan. Any recovery against the NPL shall be treated as recovery of principal. Recovered amount shall be shared between SBP and PFI in the ratio of 60: 40..

[Audio] Reporting Mechanism PFIs will submit a quarterly report to Development Finance Support Department ( DFSD), Head Office, SBP-BSC. The report shall be submitted within 7 days of respective quarter end..

[Audio] Other Terms and Conditions Financing under the scheme shall be in adherence to relevant Prudential Regulations of SBP. Loan process time: 15 working days after complete submission of documents and information. PFIs explicitly apprise the prospective borrower of the reasons for rejecting the application. SBP inspection team to check financing allowed under the scheme. Refinancing will be allowed subject to Internal audit providing its certification that loan disbursement met all the terms and conditions under the scheme. Copy of certificate to be shared with SBP-BSC. Rescheduling of principal only and overall tenor to remain within five years from original disbursement. Penal Action: Rs 0.60 paisa per RS 1000 per day of principal amount..

Important Forms. 1. C7-Annex-B.pdf (sbp.org.pk). 1. C7-Annex-B.pdf (sbp.org.pk).

[Audio] Questions & Answers Session.. Questions & Answers Session.

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[Audio] Thank You. Thank You.