LAHORE, July 3: The Punjab Small Industries Corporation will launch three new finance schemes for advancing Rs3.5 billion loans for setting up small and medium industrial units on 7 per cent mark-up.

The PSIC has allocated Rs2 billion for the first scheme meant for financing small and medium industries. A loan of Rs12 million will be made available for a project estimated to cost Rs20 million under the scheme.

A sum of Rs500 million has been allocated for the second scheme meant for funding the establishment of the agro-based industries. A maximum Rs3 million will be provided for the setting up of dairy development projects, milk plants and other agro-based industries costing up to Rs6 million.

The PSIC will make available Rs1 billion for the third scheme aimed at financing the establishment of information technology and engineering units. A loan of Rs8 million will be set aside for a project amounting to Rs10 million under the scheme.

The decision to launch new schemes was taken at a meeting of the corporation held here on Thursday with Punjab Industries Minister Muhammad Ajmal Cheema in the chair.

The meeting also approved a new scheme for the recovery of outstanding loans from the defaulters under which they would be able to clear their liabilities with only 20 per cent mark-up on the principal amount.

The minister was informed that the corporation had recovered 86 per cent of its outstanding liabilities from the defaulters. He said that loan recovery should be expedited but defaulters should not be harassed. He also stressed the need for the development of infrastructure to facilitate industrial growth in the province.

Provincial Industries Secretary Shahid Rashid, Bank of Punjab Chairman Kamran Rasul, PSIC’s Managing Director Tariq Shafi and Finance and Planning and Development Department representatives also attended the meeting.