Objective:

SBP has introduced LTFF to promote export led industrial growth in the country. Through this facility, exporters are facilitated by providing subsidized financing for setting up of export oriented projects and modernizing their plant & machinery.

Salient Features:

› Financing is available for local purchase and import of new plant, machinery, equipment and generator / captive power plants
› Financing available through Bank of Punjab as per its lending term and conditions.
› Financing is available to the export oriented projects only having annual export equivalent to US$ 5 million or 50% of sales, whichever is lower
› Financing is also available for new projects on the basis of projected exports. New projects are required to meet the minimum export target of LTFF [viz. annual export equivalent to US$ 5 million or 50% of sales, whichever is lower] on staggered basis in four years
› Financing is available against Letter of Credit only to the extent of the C&F value of imported machinery and ex-factory / showroom price of locally manufactured machinery

Eligible Sectors:

› Textile & Garments
› Rice processing
› Leather & Leather products
› Sports goods
› Carpets & Wool
› Surgical instrument
› Fisheries
› Poultry & meat
› Fruits / Vegetable & processing, Cereals
› IT- Software & Service
› Marble & granite,
› Gems & Jewelry
› Engineering goods
› Ethanol
› Furniture
› Pharmaceutical
› Glass
› Dairy Sector
› Spinning & Ginning Sector

Minimum Financing Limit:

Minimum borrowing limit for a single export oriented unit is Rs. 1.5 billion under LTFF

Financing Tenure:

Financing is available for a maximum period of 10 years including maximum grace period of 2 years.

Mark-up Repayment:

› Mark-up is payable on quarterly basis.
› Principal amount of loan is repayable in equal quarterly / half yearly instalments after the prescribed grace period, if any.

Markup Rates:

Financing is available at markup rate of 6% per annum.

Processing Charges:

As per SOC