SBP introduces innovative SME Asaan Finance scheme (SAAF)
*Summary of SAAF*
1.Asan Finance Scheme introduced by SBP under brand name of *SAAF* Dated 16.08.2021.
It is *collateral Free* scheme for New and Established SMEs upto *Rs.10 M*.
2.The loans will be for long term capital expenditure and working capital purposes.
3.SBP will provide refinancing to Banks at 1% which the banks can lend to borrowers upto 9%.
3.Selction of banks will be done by SBP after receiving Expression of Interest(EOI) from intending participating Banks(Islamic & conventional)
4.Scheme to start at end of September 2021 with government of Pakistan providing risk coverage from 40% to 60 % in case of loss.
Risk coverage Amount
60% 4 M
50% 4.1 M to 7 M
40% 7.1 M to 10 M
SME total bank financing stood at Rs.444 Billion at 31st March, 2021 ,SME contributes 40% to GDP and 25% to Exports.It is good scheme for SMEs as they avail non formal market credit at 25%.
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SBP introduces innovative SME Asaan Finance scheme (SAAF)
