SME BANKING AND FINANCE PRODUCTS
 
SME Banking Products
 Asset Side
   Products:
The complete range of fund and non – fund based products of the Bank will be made available to the “Medium” and “Small” Enterprises customers including the following:

  • Running Finance

  • Cash Finance

  • Import Lines (LC sight & LC usance – maximum 180 days)

  • FATR (maximum 120 days)

  • FIM

  • Demand Finance

  • Export Lines (Purchase / discount / negotiation of bills of exchange: Lines for discounting of discrepant documents must be backed by tangible security).

  • Pre / post Shipment Loans

  • Inland Bill / Local Invoices Discounting (IBD / LID)

  • Export Refinance / LMM / LTF – EOP

 Liability side
Already available on website which can be used by all entities.
 
ELIGIBILITY CRITERIA
The Bank has established specific credit criteria in order to define the types and characteristics of its preferred borrowers. These criteria include the following:

  • Maximum Age limit is of 65 years, in case of above 65 then client should arrange a co-borrower.

  • Track record of the client;
    a. Any borrower who has once defaulted with the Bank will not be     allowed any financing facility by the Bank in future.

    b. Any borrower who has remained in litigation with the Bank will not     be allowed any financing facility by the Bank in future.

  • Business position of the borrower should commensurate with industry trends.

  • Key financial indicators such as equity, profitability, turnover, leverage and debt servicing ability should be positive.

  • The borrower's internal risk rating should be within the acceptable range.

  • Purpose for which financing is sought to be clearly explained.

  • Adequate cash flows should be available to judge repayment behavior.

  • Collaterals must be of Urban area and should not be third party (excluding blood relation). It must be accessible, saleable, marketable having a clear title deed.

  • Purpose for which financing is sought to be clearly explained.

 
FIANANCING LMITS
  • For SE Rs 15 M

  • For ME Rs 100 M

 
PRICING CRITERIA
Markup is linked with KIBOR and is charged, considering the risk profile of the borrower. It is chabged according to change in KIBOR on quarterly basis. Branch resets the markup on date of allowing the facility and afterwards it is changed on first day of each calendar quarter according to change in 3 month KIBOR rate.
 
SAMPLE FINANCIALS
Financial Specimen (Annexure-1)
 
INSTALMENT CALCULATER
Repayment Schedule
 
REQUIRED DOCUMENTS
Porposal Checklist
 
MODE OF REPAYMENT AND REPAYMENT FREQUENCY
On monthly/quarterly basis, as per the nature of transaction. For RF payment of markup is on quarterly basis while for DF, repayment of principal and markup can be quarterly as well as monthly, as per the nature of facility and cash flows of the Client
 
PENALTIES
Branch is instructed to recover the due markup within 15 days otherwise 2% penal markup is recovered over and above the prescribed markup rate.
 
HOW TO APPLY
Client visits the nearest branch and submits his application form. Branch Manager after conducting visit of business place and arranging all information according to PRs and credit policy, recommends the case to Head Office for approval.
 
FAQs
Normal questions are about markup rate and processing time etc.
 
 


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