In order to improve socio-economic life of the special persons in Pakistan, the State Bank of Pakistan (SBP) has launched a concessionary Small Enterprise Financing and Credit Guarantee Facility for special persons.
Under the scheme, banks and DFIs will be required to provide financing facilities to special persons to meet credit needs for setting up of new business enterprises or expansion of existing ones and claim refinance from State Bank up to 100 percent of finance extended by them.
Special persons can avail financing up to Rs 1.5 million for a maximum period of 5 years including grace period of 6 months. SBP will also provide risk coverage of 60 percent to banks/DFIs on their outstanding loans under the scheme.
Special persons holding CNIC with disability logo/symbol will be provided finance. Under the scheme, refinancing will be provided by State Bank at 0 percent to Participating Financial Institutions (PFIs) for onward lending to special persons falling under small enterprise (SE) category at the rate of up to 5 percent per annum.
The SBP has advised banks/DFIs to apply for refinance limits under the scheme to the Director, Infrastructure, Housing and SME Finance Department latest by April 30. SBP will allocate limits to PFIs under the scheme on receipt of request from them. These limits will remain valid till finalization of revised limits by SBP.
SBP believed that this Credit Guarantee Facility will help the measures for improving access to finance for this vulnerable segment of the economy.
As per the term and conditions, if a borrower repays the loan amount or its instalment, in part or in full, before the due date, the PFIs will be under obligation to repay the amount(s) so received within 15 days to the concerned office of SBP BSC failing which, fine for late adjustment of loan will be recovered from the concerned bank/DFI, at the rate of Paisa 60 per day per Rs 1,000 or part thereof or prospectively at such rate as may be announced by the State Bank from time to time
This financing facility is expected to improve access to finance for special persons falling under Small Enterprise (SE) category at a concession rate of 5 percent per annum.
According to SBP, SBP Governor Tariq Bajwa announced this special facility in the 7th meeting of the National Assembly Standing Committee on Finance, Revenue and Economic Affairs held at State Bank of Pakistan. Members of the Standing Committee and senior executives of State Bank of Pakistan were also present on the occasion.
"Realizing the vulnerability of persons with disabilities in the country and cost associated with their exclusion for the economy, SBP in-line with its priority sector development has devised a scheme for special persons", SBP Governor said.
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