Among SBP’s numerous refinance schemes, SBP has a refinancing facility for modernization of Small & Medium Enterprises (SMEs) as a part of its overall strategy to focus on the development of SME sector in the country.

The Scheme: Refinance Facility for Modernization of SMEs

SMEs play an important role in creation of employment opportunities, economic growth and poverty reduction. In order to encourage SMEs to modernize their factories for producing quality products and to meet their power shortages, SBP had introduced ‘Refinance Facility for Modernization of SMEs’.

Features of the Scheme:

This scheme is mainly to provide financial support to selected SME sectors. The borrower is disbursed funds under this scheme to purchase new imported / local plant & machinery for Balancing, Modernization and Replacement (BMR) of existing units / projects or setting up of new units. The facility is available for maximum period of ten years including six months grace period. Mark-up is also subsidized by SBP. In addition, financing for import / local purchase of new generators upto a maximum capacity of 500 KVA is also eligible under the scheme.

Mark-up Rate charged, Tenor of loan and Repayment by borrower

Principal amount of loan is repayable in equal quarterly / half yearly installments after prescribed grace period, if any. Mark-up is payable on quarterly basis and is charged at a flat rate of 6.00% per annum regardless of tenor. The Tenor of this loan is upto 10 years.

SME Clusters / Sectors eligible for financing under the Scheme include:

• Rice Husking
• Cotton Ginning
• Power Looms
• Dairy & Livestock
• Cutlery & Stainless Utensils
• Surgical Instruments
• Marble & Granite
• Engineering Goods / (Electronic)
• Fisheries
• Packaging / Processing of Fruits / Vegetables
• Furniture
• Gems & Jewellery
• Sports Goods
• Agro-based Industry

Other terms & conditions:

• Financing is available only against Letters of Credit in case of financing against imported plant and machinery.
• Only SME borrowers, as defined in Prudential Regulations for SMEs, shall be eligible to avail financing facilities under the scheme.
• Financing for purchase of second-hand machinery, land, construction of building is not eligible under this scheme.
• Financing will be available to the extent of the C&F value of the imported new plant and machinery and / or ex-factory / showroom price of the new locally manufactured plant and machinery.
• Disbursement of loan shall be made directly to manufacturer / supplier and not to the borrower.
• In addition to the above terms and conditions Faysal Bank shall perform its internal due diligence considering its own internal credit policy.

Faysal Bank Branches offering this scheme:

• Main Branch, Karachi
  ST-2, Faysal House, Shahrah-e-Faisal, Karachi
  Phone: 021-32795200 / 021-111-747-747
• Main Branch, Lahore
  310-Upper Mall, Shahrah-e-Quaid-e-Azam, Lahore
  Phone: 042-111-11-22-33, 042-35789013
• Blue Area Branch, Islamabad
  15-West, Jinnah Avenue Blue Area, Islamabad
  Phone: 051-111-747-747, 051-2275096-8
• Civil Line, Branch, Faisalabad
  Bilal Road, Civil Lines, Faisalabad.
  Phone: 041-2644481-5,041-111-747-747
• IBB, 80-Abdali Road, Multan
  CBSME Floor Multan
  Phone: 061-4581905-6, 061-4570598