SME Banking

Execution

• The Bank of Khyber

Target Areas

• All Provinces of the country including GB and newly merged areas.

Loan Type

• Term loans (Demand Finance)
• Working Capital/ Running Finance (Running Finance)

Processing of Application Forms

• On First come, First Serve Basis

Sectors

• All SME sectors including Services, Trading, Manufacturing & Agriculture.

Scope & Eligibility

• All SMEs having verifiable, viable and feasible business plans. Startups may also be entertained.
• Single SME can avail this facility from one bank only.
• The definition of SMEs as prescribed in Prudential Regulations for SME Financing will be applicable for the purpose of this scheme.

In-Eligibility

• Existing Asset Clients of the bank.
• SAAF client of any other Bank.
• An employee of any Government or Semi-Government or Autonomous body.
• A loan defaulter or the applicant having any outstanding loan exposure with overdue of more than 60 days with more than one time incident from any Banks and not having clean e-CIB.
• Businesses on negative list of Government of Pakistan.

Financing Limit

• Maximum financing limit under the scheme to a single SME will be capped at PKR 10 million as per SBP defined three categories.

Type of loan

• Term loans
• working capital / Running finance

Security

• Loans shall be secured against personal guarantees of the borrowers.
• In case of commercial vehicle HPA / Joint Registration 

Financing Tenor

• Maximum tenor as per terms & conditions of approved financing facility/ Business Assessment.

Repayment

• The loan will be repaid on due dates agreed between the bank and the borrower.

Mark-up

• End User: 9%. p.a.

Risk Sharing

• The Bank risk is covered in the following manner as per SBP Circular No. IH&SMEFD Circular No. 09 dated: August 16, 2021 Titled SME Asaan Finance (SAAF) Scheme.