PESHAWAR: Khyber Pakhtunkhwa government has introduced credit schemes for capacity building of businesses, purchase of machinery and working capital for their operation.

Credits for the purpose would be disbursed through the Bank of Khyber and a formal memorandum of understanding (MoU) has also been signed between the Department of Industries and the bank. The credit would be offered to businessmen under Rast Islamic Banking Re-finance scheme for modernization of SMEs. The time period of the scheme is 8 years.

The facility would be provided to the local SMEs in two heads including the capacity building- purchase of machinery and working capital for the operation of businesses. The provincial government has allocated a hefty amount of Rs.12 billion for the purpose.

During the first year of the scheme, no mark-up would be charged and only 2% mark-up for the second year while 6% mark-up for both first and 4% for remaining three years would be paid by the provincial government itself. The loan would be recovered in a period of five years. Under the scheme, the SMEs would be offered a credits up-to Rs.20 million each in head of both modernization and working capital.

Copyright Business Recorder, 2022