As per Prudential Regulations of SME, Small Enterprise (SE) should meet the following parameters:
No.of Employees : Up to 20(including contract employees)
Annual Sales Turnover : Upto 75M
Maximum Exposure to Small Enterprise:
Rs 15 million from a single bank/DFI or from all banks/DFIs
Medium Enterprises are required to meet the following:
No. of Employees : 21-250 for Manufacturing and Service ME
21-50 for Trading ME
Annual Sales turn over : Above Rs.75M and upto Rs.400M for all types of ME
Major Type of Facilities:
FWBL provides all standardized SME loan facilities such as Fund Based Demand Finance, Running Finance, Export Refinance and non Fund Based Letter of Guarantee/ Letter of Credit so on to business entities in accordance to Bank’s charter.
Basic Purpose of Finance
These loans are allowed for any specific expansion of Business / working capital requirement, purchase of stocks, purchase of plant and machinery, setting up of small scale projects on case to case basis depending on the credit worthiness of the borrower and feasibility/profitability of the business.
Any acceptable securities such as any mix of Cash Collateral, Mortgage of property , Pledge /Hypothecation/charge of stocks/receivables, Hypothecation/Charge on plant and machinery etc.
Pricing of Credit Proposals is based on floating rates i.e.KIBOR as quoted by SBP on daily basis and reviewed periodically by the management.
Short Term (upto one year) and Medium term (upto 3 years), normally, according to loan structure and customer’s specific needs and repayment plan.
Maximum Per party exposure limit for ME:
The maximum exposure of a Bank on a single ME shall not exceed Rs.100M*
*subject to fulfillment of prevalent SBP and Bank’s credit policies.
Site last updated December 5, 2013 @ 11:50 am