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SBP Refinancing Schemes

State Bank of Pakistan (SBP) offers refinance facilities to SMEs with an aim to support industrial growth and exports with the ultimate objective of promoting overall economic development of the country. SBP introduced special schemes under its refinance window to ensure adequate supply of financing at subsidized rates.

1. Export Refinancing Schemes


Purpose:
  • Financing is available to direct exporters including manufacturers, trading companies, new exporters and indirect exporters. Financing can be availed at pre-shipment and/or post-shipment stage against firm export contract / LCs.
Eligibility:
  • Direct/Indirect Exporters including manufacturers, trading companies and service providers.
  • Copy of Export Contract / LC, application for finance by exporter, demand promissory note and undertaking (For Part I).
  • Two time export performance annually of commodities eligible under the scheme (For Part II).
Pricing:
  • SBP Refinance rate + 2%
Tenor:
  • 180 days (with rollover option)

2. Refinancing Facility for Modernization of SMEs


Purpose:
  • To purchase / import of new machinery for BMR of existing SME units & setting up of new SME units and for purchase of new generators up to 500 KVA. In case of imported machinery, financing will be against LCs only.
Eligibility:
  • SME borrowers as defined in SBP PRs.
Loan Amount:
  • Imported machinery: up to C & F value
  • Local manufactured machinery: ex-factory / showroom price.
Pricing:
  • 6% p.a or as per latest SBP directives.
Tenor:
  • Maximum 10 years (including maximum 06-month grace period)

3. Markup Subsidy & Guarantee Facility for the Rice Husking Mills in Sindh


Purpose:
  • Sindh Enterprise Development Fund (SEDF) in collaboration with SBP offering financing facility to rice husking mills in Sindh for modernization of existing unit or establishing new units.
Eligibility:
  • Rice Husker in Sindh.
Loan Amount:
  • Maximum Rs.10 million to single borrower (for mechanized dryers up to Rs.16 million).
Pricing:
  • End User rate is 2%.
Tenor:
  • Maximum 05 years (including maximum 06-month grace period).

4. Financing Facility for Storage of Agricultural Produce (FFSAP)


Purpose:
  • To encourage private sector for establishment / expansion / BMR of silos, warehouses & cold storages for storing agriculture produce. Cost of civil work up to 65% is also eligible under the scheme.
Eligibility:
  • SME borrowers as per SBP PRs.
Loan Amount:
  • Maximum Rs.500 million to a single project.
Pricing:
  • 6% p.a or as per latest SBP directives.
Tenor:
  • Maximum 10 years (including maximum 06-month grace period)

5. Financing Scheme for Renewable Energy


Purpose:
  • Financing shall be available to consumers (domestic, commercial or industrial) willing to install facility using renewable energy source for generation of electricity. Facility is available under two categories.
Eligibility:
  • Category I is for the projects with a capacity ranging from more than 1MW to 50MW.
  • Category II is for the projects with a capacity ranging from 4KW to 1000KW.
  • Financing shall be available to consumers (domestic, commercial or industrial).
Loan Amount:
  • Category I: Refinance allowed under the Scheme cannot be more than Rs. 6 billion for a single Renewable Energy Project (subject to adherence of other rules & regulation).
  • Category II: Refinance may be provided for 100% of financing provided by banks/DFIs to the eligible borrowers subject to adherence of other rules & regulations.
Pricing:
  • 6% p.a or as per latest SBP directives.
Tenor:
  • Category – I: Maximum 12 years under (with max grace period of 02 years).
  • Category – II: Maximum 10 years under (with no grace period).

6. Long term Financing Facility (LTFF) for Plant & Machinery


Purpose:
  • For local purchase and import of new plant, machinery, equipments and generator / captive power plant to promote export led industrial growth in the country.
Eligibility:
  • Exports oriented projects for SBP prescribed sectors with annual export equivalent to USD 05 million or at least 50% of the sales whichever is lower.
Loan Amount:
  • Maximum Rs.1.5 billion to a single export oriented unit.
Pricing:
  • 6% p.a or as per latest SBP directives.
Tenor:
  • Maximum 10 years (including maximum 02 year grace period)

7. Refinance Scheme for Working Capital Financing of Small Enterprises and Low-End Medium Enterprises


Purpose:
  • To meet working capital requirements for sectors as prescribed by SBP.
Eligibility:
  • All Small Enterprises as per SBP PRs.
  • Medium Enterprises with annual sales of Rs.300 million.
Loan Amount:
  • Small Enterprise: Up to Rs. 25 million.
  • Medium Enterprise: Up to Rs.50 million.
Pricing:
  • 6% p.a or as per latest SBP directives.
Tenor:
  • Maximum 01 year.

8. Refinance & Credit Guarantee Scheme for Women Entrepreneurs in Underserved Areas

Purpose
  • To improve access to finance for women entrepreneurs in the underserved areas of the country for setting up new businesses or expansion of existing business.
Eligibility
  • Women entrepreneurs of underserved areas only (districts excluded are Karachi, Lahore, Faisalabad, Sialkot, Gujranwala, Islamabad, Rawalpindi, Kasur, Gujrat, Sheikhupura)
Loan Amount
  • Maximum Rs.1.5 million
Pricing
  • 5% p.a. or as per latest SBP directives
Tenor
  • Maximum 05 years (including maximum grace period of 06 months)

Note: Above mentioned information is subject to change as per SBP directive. For further information, please visit www.sbp.org.pk or visit nearest HBL branch.