SBP works on new mechanism to attract borrowers

KARACHI: The State Bank of Pakistan (SBP) was working out a new mechanism to seek out businesses and their staff to apply for loans in banks under concessional credit schemes, a statement said on Wednesday.

SBP Banking Services Corporation (SBP BSC) Managing Director Muhammad Ashraf Khan said at a SME Mela in Multan that the central bank was making all out efforts to enhance collaboration with the industry and chambers across the country to spread awareness about its credit schemes to boost credit utilisation.

SBP BSC in partnership with industry chambers and women associations was working under a new mechanism to identify potential businesses and their employees to apply in the banks for loans under concessional credit schemes for SMEs and housing, he added. He said the objective of the event was to bring banks and business community under one roof, providing an opportunity to micro, small, and medium enterprises to seek guidance from concerned officials of SBP and commercial banks about concessionary refinance schemes. He encouraged those SMEs to apply under SBP’s SME Asaan Finance (SAAF) that have strong business viability, but do not have collateral to offer.

The SBP organised a two-day SME Mela on January 24-25, 2022 in collaboration with Multan Chamber of Commerce and Industry (MCCI). The event was attended by officials and members of chambers of industry and commerce, associations of traders and women entrepreneurs, and SMEs clusters of Multan, Khanewal, Vehari, DG Khan besides officials of SBP BSC and banks.

Muhammad Usman Dar, Special Assistant to Prime Minister on Youth Affairs, speaking at the inaugural session of the Mela, highlighted the progress of Prime Minister’s Kamyab Jawan Programme especially designed for young entrepreneurs in the country.

He praised the commitment of SBP Governor Reza Baqir in expanding access to credit at the grassroots, including small businesses, women entrepreneurs, and people dreaming to own their home through new credit schemes such as SAAF, Mera Pakistan Mera Ghar (MPMG) and SBP Refinance Scheme for Women Entrepreneurs. On day one, participants were briefed about the key features of SAAF and PM Kamyab Jawan Youth Entrepreneurship Scheme. Under SAAF, collateral free financing of up to Rs10 million is available through eight participating banks.

Similarly, under Kamyab Jawan scheme, concessional loans of up to Rs25 million are available at end user rate of 3 percent to 5 percent. On the second day of the event, participants were apprised about key features of SBP’s financing scheme for renewable energy and MPMG scheme.

Over 600 businesses and firms attended the event and visited the banks’ stalls to seek knowledge of SBP’s financing schemes and banks’ loan products. Notably, 264 participants registered themselves at various stalls to express interest in concessional schemes, including 105 SMEs and women entrepreneurs, who applied on the spot for financing under different schemes. During the event, MD SBP BSC also distributed cheques among the borrowers of HBL, Bank of Punjab and Bank Alfalah under SBP’s SAAF.