SME Financing

SME Financing

  • 1)       Running Finance

    2)       Cash Finance

    3)       Bank Guarantee

    4)       Letter of Credit

    5)       Term Finance

    6)       Lease Finance

    7)       Finance Against Imported Merchandise (FIM)

    8)       Finance Against Trust Receipt (FATR)

    9)       Acceptance

    10)   Foreign Bills Purchased (FBP)

    11)   Inland Bills Purchased (IBP)

    12)   Export Finance/Refinance

    13)   Long Term Finance Facility
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SBP SCHEMES

  • MODERNIZATION OF SME
1.  Scope and Eligibility Criteria:
i) Financing shall be available to wide range of SME Clusters / Sectors.
ii) Only SME borrowers, with number of employees up to 250 and sales turn-over up to Rs 800 million shall be eligible to avail financing facilities under the Scheme.
iii) Financing shall be available for purchase of new imported/local plant & machinery for BMR of existing units and setting up of new SME units.
iv) Financing shall be available for import/ local purchase of new generators up to a maximum capacity of 500 KVA under the Scheme. The capacity of generator shall, however, not be in excess of SME Unit’s in-house energy requirements or up-to 500 KVA, whichever is less.
v) Financing shall also be available for carrying out civil works up-to 20% of total project cost for conversion of conventional brick kiln and up-to 50% of total project cost for establishment of new zigzag technology based brick kiln.
2. Period of Financing and Grace Period:
Financing under the Scheme shall be available for a maximum period of ten years including a maximum grace period of six months
3.  Rates of Service Charges / Mark-up:
Financing is available to end users at mark-up rate of up-to 6% p.a.

SEDF

In a significant move to enhance economic growth and promote strategic alliances, the Sindh Enterprise Development Fund (SEDF) and Sindh Bank Limited have entered into a pivotal Institutional Collaboration Agreement

Salient Features

  • Financing Limit (As per SME dedicated Criteria)

Rs. 1,000 Million being total (aggregative) Limit for all the Projects/ Businesses financed under this Agreement. However, Per party / borrower limit as per prevailing Prudential Regulation of SBP for SME financing.

  • Financing Facilities:

1)      Working Capital (on SEDF terms and conditions i.e. Working capital subsidy (if any) will be solely at the discretion of SEDF and from case to case basis.)

2)      Capital Cost Financing (Term Finance/ Lease Finance) for equipment, plant & machinery, animals (e-tagged) etc.

  • Eligible Sectors (as defined by SEDF)

1)      Agri Based projects

2)      Livestock & Dairy

3)      Poultry

4)      Horticulture & Floriculture

5)      Storage and Cool Chain

6)      Green Energy/ Altern Energy

7)      Mining and Mineral Processing

8)      Women Entrepreneur

9)      Information Technology

General Terms & Conditions

  • Tenor of The Facility:

1)      Working Capital Loan: 01 year on roll over basis up to 3 years.

2)      Term Loan/ Lease Finance: 5 years except projects/ schemes falling under State Bank of Pakistan’s refinance facilities where tenor will be up to 10 years and/or as amended by SBP from time to time.

  • Repayment:

Repayment of finance shall be in installments i.e. Monthly or quarterly.

  • Subsidized Mark Up:

SEDF will reimburse markup up to the extent of KIBOR part of mark-up on the loan provided by Bank. However, customer shall pay entire markup i.e. Principal and Spread from their own cashflows whereas SEDF will reimburse the KIBOR portion of Markup in the account of customer maintained with Sindh Bank.

In the event, a facility falls under SBP’s refinance scheme, portion of markup beyond 2% will be paid by SEDF.

  • Modernization of SME:

Up-gradation projects will be considered for financial assistance in terms of lease of plant, equipment & machinery.