SBP Disbursement of first loan under SME Asaan Finance (SAAF)

With reference to ERD/M&PRD/PR/01/2021147 Dated 21 December 2021 Governor State Bank of Pakistan Dr Reza Baqir witnessed a check ceremony distribution ceremony held to mark the disbursement of first set of loans by Meezan Bank under SME Asaan Finance (SAAF) scheme at Multan.

While addressing the audience Honorable Governor highlighted the importance of SME sector for the economy and also emphasizes the measure taken by SBP for;-

i) Providing enabling regulatory framework for SME financing.

ii) Developing market infrastructure.

iii) Creating awareness and enhancing capacity of bankers and SMEs.

He also encouraged all MCCI members, entrepreneurs and SME’s to take full advantage from this scheme to set up and upgrade their businesses since this loan is specially designed to support them flourish in the industry.

Flexible Features of Loan

Under the scheme, SMEs can avail collateral free financing of upto Rs 10 million at the concessionary end-user rate  of upto 9% p.a. to meet their long term capital expenditure and short term working capital needs.

The scheme also offers reasonable spread to banks to enable them invest in their processes, systems, human resource and technology; so that when the SAAF scheme concludes, banks are able to continue the collateral free financing on sustainable basis.

SAAF is a unique facility, wherein, refinance is provided by SBP while risk coverage of up to 60 percent
is provided by Government of Pakistan.

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The SAAF scheme was launched by SBP on August 16, 2021 and eight banks were selected after a
transparent bidding process.

Besides Meezan Bank, the seven other banks including Habib Bank Ltd,United Bank Ltd, The Bank of Punjab, Bank Alfalah Ltd, JS Bank Ltd, The Bank of Khyber and Allied BankLtd will start disbursement under SAAF from early next month. The desirous SME borrowers can approach any of the eight banks for availing collateral-free financing under SAAF.

The details of SAAF scheme are available at SBP website https://www.sbp.org.pk/smefd/circulars/2021/C9.htm.

Nevertheless with the Joint collaboration of Government and State Bank of Pakistan  SAAF is a great initiative and step forward to support Business person’s to expand their Businesses with the help of this collateral free loan.

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