Development and Strengthening of SMEs

The Government of Khyber Pakhtunkhwa in technical and financial collaboration with The Bank of Khyber has established a credit line of Rs. 200 million for the development and strengthening of Small and Medium Enterprises in the province. BOK under the scheme shall provide loans for working capital requirements and purchase of machinery / equipment and balancing, modernization & replacement. The bank shall finance eligible SMEs to the extent of funds allocated by the government on the recommendations of Khyber Pakhtunkhwa Chamber of Commerce & Industry, Peshawar.
General Eligibility:
1. The applicant must be permanent resident of Khyber Pakhtunkhwa and business must be located in Khyber Pakhtunkhwa. Preference shall be given to the terrorist affected areas.
2. The applicant must be registered tax payer.
3. The applicant must not be more than 60 years of age (does not apply to manufacturing sector) and must not be defaulter of any bank.
4. The Business should have the potential to generate further employment.
5. All Business Transaction must be routed through a financial institution (BOK).
6. The applicant should be a member of Chamber of Commerce & Industry in the Province or a member of any recognized Trade Association.
7. Recommendation of the Chambers or concerned Trade Association will be subject to appraisal by the Bank Authority.

A: Working Capital Loans

Working capital loans shall be provided to SMEs and Trading & Services sectors as under.


Running Finance

Maximum Loan Size

- Trading & Services sector

- SME sector

Rs. 300,000

Rs. 500,000


3 Years only (Not renewable)

- The client shall pay the markup on quarterly basis .

- The principal amount of loan to be adjusted three times during the loan maturity .

Mark up rate

9% per annum


- Two personal guarantees and recommendation from KP Chamber of Commerce and Industry, Peshawar or relevant registered Trade Association

- Hypothecation of stock


Cash flow based lending

B: Demand Finance Loans

Demand Finance loans shall be provided to SMEs who intend to rehabilitate their existing units by additional machinery or fixed investments.


Demand Finance

Maximum Loan Size for Trading & Services sector

Rs. 1,500,000 (Rs. one million five hundred thousand only)


5 Years

Mark up rate

9% per annum

Grace Period

18 Months

Repayment shall start 18 months after disbursement, repayable in 14 quarterly installments.


- Hypothecation of stock and machinery.

- Two personal guarantees of the Directors / Partners and recommendation from KPK Chamber of Commerce and Industry, Peshawar or relevant registered Trade Association.

- Equitable mortgage (signing memorandum of deposit of original title documents).


Verifiable business history and cash flow

Loan Application Form Development and Strengthening of SMEs

Head Office:- 24-The Mall,Peshawar Cantt,Khyber Pakhtoonkhwa,Pakistan.