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Special persons to get loans at 5pc

Updated March 20, 2019

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SBP has allowed small enterprise financing and credit guarantee facility for special persons. — APP/File
SBP has allowed small enterprise financing and credit guarantee facility for special persons. — APP/File

KARACHI: The State Bank of Pakistan has decided to provide concessionary loans at an interest rate of five per cent to special persons.

The SBP said on Tuesday the bank had allowed small enterprise financing and credit guarantee facility for special persons.

SBP governor Tariq Bajwa announced the facility at the seventh meeting of the National Assembly Standing Committee on Finance, Revenue and Economic Affairs.

Members of the committee and senior SBP executives were present on the occasion.

The SBP will provide refinance to banks and development finance institutions (DFIs) up to 100 per cent of the finance extended by them. Special persons can avail financing up to Rs1.5 million for a maximum period of five years, including a grace period of six months.

“Realising the vulnerability of persons with disabilities in the country and cost associated with their exclusion for the economy, the SBP in line with its priority sector development has devised a scheme for special persons,” said Mr Bajwa.

The facility is expected to improve access to finance for special persons falling under the small enterprise (SE) category at a concessional rate of five per cent per annum. Under the scheme, banks and DFIs will provide financing facilities to special persons for establishing new business enterprises or for expansion of existing businesses.

“The SBP will also provide risk coverage of 60 per cent to banks or DFIs on their outstanding loans under the scheme,” said the SBP governor.

Published in Dawn, March 20th, 2019