SME Finance

Small Enterprise

As per Prudential Regulations of SME, Small Enterprise (SE) should meet the following parameters:

No.of Employees

:

Up to 50(including contract employees)

Annual Sales Turnover

:

Upto Rs.150M

*Maximum Exposure to Small Enterprise:
Rs. 25 million from a single bank/DFI or from all banks/DFIs

Medium Enterprise:

Medium Enterprises are required to meet the following parameters:

No.of Employees

:

51-250 for Manufacturing and Service ME

51-100 for Trading ME

Annual Sales Turnover

:

Above Rs.150M and upto Rs.800M for all types of ME

*Maximum Per party exposure limit for ME:

Rs.200M (including leased assets) from single or all banks,
*(subject to fulfillment of prevalent SBP and Bank’s credit policies).

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.

Collateral:

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:

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.

Tenor:

Short Term (upto one year) and Medium term (upto 3 years), normally, according to loan structure and customer’s specific needs and repayment plan.

Eligibility Criteria:

All  small and medium business concerns capable to start or run a business on profitable basis.

Documentation:

Complete documentation depends on case to case basis according to the type of borrower and nature of business.

Following basic documents are required:

• Limit Application
• BBFS on SBP format
• Borrowers profile
• ECIB Report
• Documentary Evidences of sources of income
• Business Financials & Expected Cash flows with proper assumptions
• Collateral Documents
Others as may be as per requirement by Bank

Mode of Repayments, Its Frequencies and Penalties :

Depends on the loan structure and income streams of the borrower

RF :Time to time adjustment and required turnover during over the term and quarterly payment of Mark-up
DF : Monthly / quarterly installments as may be requested by borrower

There is no penalty on pre-mature adjustments or repayments of finance, however penal mark-up  may be charged as per Bank’s credit policies, in the event of  delayed payments resulting in defaults.

How to Apply:

Potential borrowers can apply through any nearest branch from FWBL branches network

Sample Financials & Loan Calculator:

For  the sake of  convenience and developing  an understating for SME customers,  a set of  Sample financials and Installment Calculator are made available. The sample financials includes  Balance Sheet , Income Statement , Cash flows and projections of a small size business . The sample financials may be used for the purpose of reference only.

Please Click here for the details of Sample Financials.

Please Click here for  Term Loan Installment Calculator  .

FAQs :

1.What is the amount of loan we can avail?
The amount of loan will be determined by Bank through need assessment and repayment capacity analysis.

2.What is the basic requirements of the Bank?
Basic requirement of the Bank include Credit Worthiness of Borrower, potential in business plan and matching collateral.

3.Can the facilities be availed by male entrepreneurs as well?
Credit worthy business concerns, irrespective of gender, can apply on competitive basis.

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Site last updated June 20, 2017 @ 3:50 am

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