Commercial Banking - Small and Medium Enterprises

Eligibility Criteria

Eligibility Criteria for SME Clients

Stated below are the minimum parameters for prospective borrowers that meet the minimum criterion of qualifying for obtaining financing from our SME division.

Please note that these requirements only represent a reasonable benchmark for eligibility and their fulfillment does not guarantee approval of finance. Bank on its discretion can vary these benchmarks on case to case basis as per its internal policies and holds the final right to accept/reject a loan application.

Eligibility Criteria:

Age of Business & Experience of Key Decision Maker

Min 3 years

Purpose of Loan


  • Facility shall be availed to meet business needs only.
  • Clear and precise intended fund utilization needs to be in place from the borrower.


Financials:      Leverage Ratio:
                        Current Ratio:
                        Profit Before Tax
                        Debt Coverage:
                        Debtors Aging List:
                        Cash Flows:
                        Min. Turnover:


As per bank’s leverage policy framework
Min 1.0x
Positive for at least 3 years
Min 1.5x
Min 70% within 120 days
Positive cash flow from operating activities

At least 50% of total sales from banking channels.


e-CIB Status

Clean credit history for the last 12 months, no

write-off or litigation in past with any bank

Market Check

Supplier Checking

Buyer Checking

General Market Check

Positive feedback from suppliers.

Positive feedback from buyers.

No Negative feedback.

Collateral Requirement

Yes. The exact requirement will vary on case to case basis

Financing Limits

Bank will assess customer’s financing needs and set financing limits accordingly. Maximum limit will be as per Prudential Regulations of SE & ME.

Pricing Criteria

Mark-up to be charged to customer is based on three months KIBOR + agreed spread. The recovery of markup is on quarterly basis except for Term Loans where mark-up is built-in agreed TF installment and recovered as per agreed schedule. All other charges are as per our prevailing Schedule of Charges (SOC).

Term Loan Calculator

Please find attached the Term Loan Calculator.

Required Documents

Following are the set of documents required to process client’s financing request:

  • Request letter for financing facilities
  • Borrowers Basis Fact Sheet as prescribed by the SBP & Loan Application Form
  • Copy of NTN
  • Copy CNIC(s) of all owners/partners/directors/key decision makers
  • Financials for last 3 years (Audited in case of Limited Liability companies or where requested exposure is more than Pkr 15 M)
  • Company Profile
  • List of Suppliers with credit terms
  • List of Buyers with credit terms
  • Details of Receivables along-with its ageing
  • Details of collateral offered
  • Any other document/information required by the Bank

Modes of Repayment its Frequency & Penalties

Finance can be adjusted upon its maturity date or prematurely before maturity date i.e. any time during the validity of finance period. The late payment penalty amount and other charges will be applicable as per Bank’s prevailing SoC.

How to Apply

Any company, who fulfills our eligibility criteria, may apply for credit facilities / trade lines from any of our branches. If the branch is non-financing branch, the Branch Manager shall guide the applicant and forward the applicant’s request to the nearest/pertinent branch.

SBP Refinance Schemes

  • Export Refinance Scheme
  • Long Term Financing Facility for Plant and Machinery
  • Refinance Facility for Modernization of SMEs
  • Financing Facility for Storage of Agriculture Produce [FFSAP]
  • Scheme for Financing Power Plants using Renewable Energy

Click here for Repayment Schedule