SME Bank is a formal lending institution for the small & medium entrepreneurs. SMEDA (Small & Medium Enterprises Development Authority) is a business support services provider. Both institutions are different and managed independent of each other, however they complement each other’s activities.

SME (Small and Medium Enterprise) means an entity, ideally not a public limited company, which does not employee more than 250 persons (if it is manufacturing concern) and 50 persons (if it is trading / service concern) and also fulfills the following criteria of either ‘a’ and ‘c’ or ‘b’ and ‘c’ as relevant:

(a) A trading / service concern with total assets at cost excluding land and buildings up to Rs 50 million.

(b) A manufacturing concern with total assets at cost excluding land and building up to Rs 100 million.

(c) Any concern (trading, service or manufacturing) with net sales not exceeding Rs 300 million as per latest financial statements.

SME Bank was established to address the financing and business support requirements of SMEs. It is Pakistan’s premiere SME lending institution with its network in SME concentrated areas e.g. Sialkot, Gujranwala, Multan, Sukkur, Hyderabad, Mirpur, D.I.Khan, Gilgit, etc. Providing financial assistance and business support services to small and medium entrepreneurs form its core activities.

 

SME Bank was established on 01st January 2002 in answer to the by standing demand of the country’s small and medium entrepreneurs.

 

1- Project Financing

2- Leasing

3- Working Capital

SME Bank can provide financial assistance from Rs.50,000.- up to an amount of Rs.30 Million. It is mandatory for the borrower to meet the debt:equity ratio of at least 60:40

 

At least 40% of the project’s/enterprise’s financing should come from the borrower in the form of equity. Up to 60 % would be financed by SME Bank.

Yes. What a client pays to the Bank, in addition to the loan amount, is called the ‘mark-up’. This is necessary to sustain the Bank’s activities.

It is market based and depends upon the project’s expected cash flows. It varies from business to business, but is in the range of 4% to 8% above the GoP’s 5-year PIB rate.

Based upon the mark-up rate and the cash flow of the proposed venture. The client/borrower is provided a complete repayment schedule at the time of disbursement of sanctioned amount.

The repayment period usually varies from three to five years, however it would be linked to the cash flows of the project/enterprise. Normally the payments are in the form of monthly installments. Grace period depends on the nature of enterprise.

 

These are available both in Urdu & English at our designated branches. See the link “Our Network” to find the addresses of a branch near you.

Our Credit Officers would gladly assist you in the process.

After the applicant has provided the requested information along with attested documents, the process takes around 45 days. Any delays are usually because of inadequate information provided by the borrower.

All projects/enterprises that are commercially viable and meet the Bank’s lending criteria. We would like to ensure that financing is used for productive activities.

BSS are provided in the areas of marketing, accounting, product design and development, etc. They facilitate better pricing & selling strategies, stronger marketing channels and assist in business start-ups and expansions. Services are also available to assist SMEs to develop and write bankable business plans

Presently the facility is available at Bank’s Head Office and by the third quarter of 2002, some of our offices would also be providing BSS. The BSS Division provides the required support services in the areas identified by the entrepreneurs during their discussions with the Bank’s officers. For this, it is necessary to contact the BSS Division.