Objective:

This scheme is introduced to encourage SMEs to modernize their factories for producing quality products and to meet their power shortages.

Salient Features:

› Financing is available for SMEs borrowers, as defined Prudential Regulation of SBP for SMEs, through Bank of Punjab
› Financing is available for local purchase / import of new machinery for BMR of existing SMEs units and setting up of new SMEs units and for purchase of new generators up to 500 KVA
› Financing is available only against LCs in case of financing against imported plant and machinery
› Financing is also available to the extent of the C&F value of the imported new plant and machinery and / or ex-factory / showroom price of the new locally manufactured machinery

Financing Tenure:

› Financing is available for a maximum period of 10 years including grace period of 6 months.

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