Name: Small Credit
Uploaded: 2023-01-20
Duration: 6 min 19 s
Description: Small enterprise ( SE) financing and credit guarantee scheme for special persons.

[Audio] Small enterprise ( SE) financing and credit guarantee scheme for special persons. 

Scene 1

(SE ) 	 Financin g 	 and   Schem e 	 for 	 Special

[Audio] Presentation Flow Introduction
Scope and & Eligibility
Tenor
Participating Financial Institutions ( PFIs) Rate of Markup Guarantee/ Risk Coverage
Allocation of Reﬁnance Limits
Grant of Reﬁnance
Loan Repayment Reporting Mechanism
Other Terms and Conditions. 

Scene 2

Introduction Scope   and   &   Eligibility Tenor Participating Financial   Institutions   (PFIs) Rate   of   Markup Guarantee/Risk   Coverage Allocation   of   Reﬁnance   Limits Grant   of   Reﬁnance Loan   Repayment Reporting   Mechanism Other   Terms   and   Conditions

[Audio] Introduction: Scheme issued through IH&SMEFD circular No 07 of 2019
To improve socio-economic life of the special persons
Improving access to ﬁnance for PWDs
Financing facilities to special persons to meet credit needs of their businesses. Reﬁnance will be provided by State Bank of Pakistan at 0[break]%. 

Scene 3

Scheme   issued   through   IH&SMEFD  circular   No  07   of   2019 To   improve   socio-economic  life   of   the   special   persons Improving   access   to   ﬁnance   for  PWDs Financin g 	 facilitie s 	 t o	 specia l 	 person s 	 t o	 mee t	 c r edi t 	 need s 	 o f 	 their  businesses. Reﬁnance   will  be  provided   by   State   Bank   of   Pakistan   at  0%

[Audio] Scope and Eligibility; Special persons holding CNIC with disability logo/ symbol Maximum ﬁnancing limit will be Rs. 1.5 Million. Financing may be provided for
Setting up of new business enterprises
For expansion of existing ones.
Financing may be provided to eligible borrowers preferably against their personal guarantee.. 

Scene 4

Special   persons   holding   CNIC   with   disability   logo/symbol Maximum   ﬁnancing   limit   will  be  Rs.   1.5   Million. Financing   may   be   provided   for Setting   up   of   new   business   enterprises For   expansion   of   existing   ones. Financin g 	 m a y 	 b e 	 p r o vide d 	 t o	 eligible 	 bor r ower s 	 p r e f e r ably 	 agains t 	 their  personal   guarantee.

[Audio] Tenor 1. Up to 5 years including grace period of up to 6 months.. 

Scene 5

1.	 Up   to  5  years   including   grace   period   of   up   to  6  months.

[Audio] Participating Financial Institutions: 1. All commercial banks and Development Finance Institutions ( DFIs) can participate in the scheme.. 

Scene 6

Participating   Financial   Institutions   (PFIs)

1.	 All  commercial   banks   and   Development   Finance   Institutions   (DFIs)   can    participate  in   the  scheme.

[Audio] Rate of Markup End user rate will be up to 5% per annum (p.a.) SBP will provide reﬁnance to PFIs at 0%.. 

Scene 7

End  user   rate   will  be  up   to  5%   per   annum   (p.a.) SBP   will   provide   reﬁnance   to   PFIs  at  0%.

[Audio] Guarantee/ Risk Coverage The risk coverage of 60% against outstanding principal portion only.
Eligible for guarantee claims on case to case basis once the loan is categorized as ' Loss'.
Loss is deﬁned as loans ( principal or markup) overdue by 18 months due date.. 

Scene 8

The   risk   coverage   of   60%   against   outstanding   principal   portion   only. Eligible  for  guarantee   claims   on   case   to   case   basis   once   the   loan   is    categorized as   ‘Loss’. Loss   is  deﬁned  as   loans   (principal   or   markup)   overdue   by   18   months   due    date.

[Audio] Allocation of Refinance Limits SBP shall allocate limits to PFIs under the scheme on receipt of request. Limits will remain valid till ﬁnalization of revised limits by SBP. Applications for sanction of limits shall be sent by the interested banks/ DFIs to the Director, Infrastructure, Housing & SME Finance Department.. 

Scene 9

SBP   shall   allocate   limits   to   PFIs   under   the   scheme   on   receipt   of   request. Limits   will   remain   valid   till   ﬁnalization   of   revised   limits   by   SBP. Applications   for   sanction   of   limits   shall   be   sent   by   the   interested   banks/DFIs    to   the   Director,   Infrastructure,   Housing   &   SME  Finance   Department.

[Audio] Grant of Refinance Claim reﬁnance monthly on consolidated basis. Claim process: Application submission to oﬃce of SBP BSC 5th working day of every month claiming reﬁnance against all the loans disbursed in the previous month.
SBP BSC will approve reﬁnance within 7 working days of receipt of complete information.. 

Scene 10

Claim  reﬁnance   monthly   on   consolidated   basis. Claim   process: Application   submission   to   oﬃce   of   SBP   BSC   5th   working   day   of   every   month   claiming    reﬁnance   against   all   the   loans   disbursed   in   the   previous   month. SBP   BSC   will   approve   reﬁnance   within   7   working   days   of   receipt   of   complete   information.

[Audio] Loan Repayment Equal monthly or quarterly installments after grace period by borrower ( Max. six months)
SBP BSC oﬃces will recover the loan amount from PFI's account on the due dates as reported in the original repayment schedule.
Normal rate to charge on overdue principal amount in case borrower fail to pay the loan amount. Bank are free to take other actions to recover the loan amount. SBP will continue to recover the principal amount on the due dates as per the repayment schedule irrespective of status of loan.
Any recovery against the NPL shall be treated as recovery of principal.
Recovered amount shall be shared between SBP and PFI in the ratio of 60: 40.. 

Scene 11

Equal   monthly   or   quarterly   installments   after   grace   period   by   borrower   (Max.    six   months) SBP   BSC   oﬃces   will   recover   the   loan   amount  from   PFI’s   account   on   the   due    dates   as  reported  in   the   original   repayment   schedule. Normal  rate   to   charge   on   overdue   principal   amount   in   case   borrower   fail   to    pay   the   loan   amount. Bank   are   free   to   take   other   actions   to   recover   the   loan   amount. SBP   will   continue   to   recover   the   principal   amount   on   the   due   dates   as   per   the    repayment   schedule   irrespective   of   status   of   loan. Any   recovery   against   the  NPL  shall   be  treated   as   recovery   of   principal. Recovered   amount   shall   be   shared  between   SBP   and   PFI   in   the   ratio   of   60:40.

[Audio] Reporting Mechanism PFIs will submit a quarterly report to Development Finance Support Department ( DFSD), Head Oﬃce, SBP-BSC.
The report shall be submitted within 7 days of respective quarter end.. 

Scene 12

PFIs   will   submit   a   quarterly   report  to   Development   Finance   Support    Department (DFSD),   Head   Oﬃce,   SBP-BSC. The   report   shall   be   submitted   within   7   days   of   respective   quarter   end.

[Audio] Other Terms and Conditions Financing under the scheme shall be in adherence to relevant Prudential Regulations of SBP.
Loan process time: 15 working days after complete submission of documents and information. PFIs explicitly apprise the prospective borrower of the reasons for rejecting the application. SBP inspection team to check ﬁnancing allowed under the scheme. Reﬁnancing will be allowed subject to Internal audit providing its certiﬁcation that loan disbursement met all the terms and conditions under the scheme. Copy of certiﬁcate to be shared with SBP-BSC.
Rescheduling of principal only and overall tenor to remain within ﬁve years from original disbursement.
Penal Action: Rs 0.60 paisa per RS 1000 per day of principal amount.. 

Scene 13

Financing under  the  scheme  shall  be  in  adherence  to relevant Prudential   Regulations    of   SBP. Loan   process   time:   15   working   days   after   complete   submission   of   documents   and information. PFIs   explicitly  apprise   the   prospective   borrower   of   the   reasons   for   rejecting  the    application. SBP   inspection  team  to   check   ﬁnancing   allowed  under   the   scheme. Reﬁnancing   will   be   allowed   subject   to   Internal   audit   providing   its   certiﬁcation   that    loan   disbursement   met   all   the  terms  and   conditions   under   the  scheme. Copy  of   certiﬁcate   to   be   shared   with   SBP-BSC. Rescheduling   of   principal   only   and   overall   tenor   to   remain   within   ﬁve   years   from

8.	 Penal  Action:   Rs  0.60  paisa   per   Rs  1000  per   day   of   principal   amoun

Important Forms. 1. C7-Annex-B.pdf (sbp.org.pk). 1. C7-Annex-B.pdf (sbp.org.pk). 

Scene 14

[Audio] Questions & Answers Session.. Questions & Answers Session. 

Scene 15

shamwail.sohail@gmail.com FB Page: (1) Bankers for Bankers | Facebook LinkedIn: (99+) Feed | LinkedIn. 

Scene 16

shamwail.sohail@gmail.com    FB  Page: (1)  Bankers for Bankers  |  Facebook    LinkedIn:   (99+)   Feed   |   LinkedIn

Scene 17

Small  Credit

Scene 0

Small enterprise (SE) financing and credit guarantee scheme for special persons

avatar

Introduction
Scope and & Eligibility
Tenor
Participating Financial Institutions

Reﬁnance Limits
Grant of Reﬁnance
Loan Repayment

Participating Financial Institutions (PFIs)

Scheme issued through IH&SMEFD circular No 07 of 2019

To improve socio-economic life of the special persons

Financing facilities to special persons to meet credit needs of their businesses.

Reﬁnance will be provided by State Bank of Pakistan at 0[break]%

Special persons holding CNIC with disability logo/symbol

Financing may be provided to eligible borrowers preferably against their personal guarantee.

Up to 5 years including grace period of up to 6 months.

All commercial banks and Development Finance Institutions (DFIs) can  participate in the scheme.

End user rate will be up to 5% per annum (p.a.)

SBP will provide reﬁnance to PFIs at 0%.

The risk coverage of 60% against outstanding principal portion only.

Eligible for guarantee claims on case to case basis once the loan is  categorized as 'Loss'.

Loss is deﬁned as loans (principal or markup) overdue by 18 months due  date.

SBP shall allocate limits to PFIs under the scheme on receipt of request.

Limits will remain valid till ﬁnalization of revised limits by SBP.

Applications for sanction of limits shall be sent by the interested banks/DFIs  to the Director, Infrastructure, Housing & SME Finance Department.

Claim reﬁnance monthly on consolidated basis.

Application submission to oﬃce of SBP BSC 5th working day of every month claiming  reﬁnance against all the loans disbursed in the previous month.

SBP BSC will approve reﬁnance within 7 working days of receipt of complete information.

Equal monthly or quarterly installments after grace period by borrower (Max

SBP BSC oﬃces will recover the loan amount from PFI's account on the due  dates as reported in the original repayment schedule.

Normal rate to charge on overdue principal amount in case borrower fail to  pay the loan amount.

Bank are free to take other actions to recover the loan amount.

SBP will continue to recover the principal amount on the due dates as per the  repayment schedule irrespective of status of loan.

Any recovery against the NPL shall be treated as recovery of principal.

Recovered amount shall be shared between SBP and PFI in the ratio of 60:40.

PFIs will submit a quarterly report to Development Finance Support  Department (DFSD), Head Oﬃce, SBP-BSC.

The report shall be submitted within 7 days of respective quarter end.

Financing under the scheme shall be in adherence to relevant Prudential Regulations  of SBP.

15 working days after complete submission of documents and

PFIs explicitly apprise the prospective borrower of the reasons for rejecting the  application.

SBP inspection team to check ﬁnancing allowed under the scheme.

Reﬁnancing will be allowed subject to Internal audit providing its certiﬁcation that  loan disbursement met all the terms and conditions under the scheme.

Copy of certiﬁcate to be shared with SBP-BSC.

Rescheduling of principal only and overall tenor to remain within ﬁve years from original disbursement.

Rs 0.60 paisa per RS 1000 per day of principal amount.

slide14-hotlink3

 shamwail.sohail@gmail.com    FB  Page: (1)  Bankers for Bankers  |  Facebook    LinkedIn:   (99+)   Feed   |   LinkedIn