ISLAMABAD, Oct 16: Export-oriented small and medium industries have received top priority from Small Business Finance Corporation (SBFC) for lending especially in non-conventional sectors.

There is no dearth of funds with the corporation, but only genuine borrowers are being entertained to ensure viability of the projects along with recovery of loans, SBFC sources said here on Tuesday.

Several applications worth Rs500 million were in the pipeline and around Rs100 million would be disbursed by the end of current financial year, sources added.

Applications, being processed for loans, pertain to different projects including information technology, engineering, garments, CNG stations, CNG kits, agro-based projects, dairy farms, fast food etc.

Another focus of the institution is towards recovery of imprudent loans worth Rs13.5 billion, of which, the corporation would be able to realize an amount of Rs3.5 billion in line with the present recovery trends.

Loans should not be granted for the sake of lending, sources said, maintaining the institution would approve only those cases which not only envisage viable projects but also ensure that these would serve as catalyst to the economic activities.

Contrary to the previous practice, the corporation would keep on providing guidance, support, and technical assistance to the borrowers on each and every step to ensure the success and viability of the projects, sources added.

Majority of the borrowers could be salvaged from default if their problems and difficulties are properly and timely reported by them to the lending institution.

The SBFC would always guide the borrowers to ensure optimal utilization of the loans for the success of the projects instead of merely focusing on loan recovery by liquidating the collateral, sources stated.

The institution is now hunting genuine borrower instead of sitting and waiting for the applicants, sources said, continuing the corporation being pro-active already approached genuine businessmen in sports, engineering and leather sectors at various cities, for grant of loans which would enable them to boost their export proceeds by expanding business.—APP