State Bank of Pakistan has announced concessional refinance scheme of Rs10 billion for the revival of economic activities and to facilitate the flow of fresh credit in flood affected areas.
The SBP issued a circular for the banks and DFIs and a press release yesterday which said that under the scheme, a mark-up of 8 per cent per annum will be charged from the farmers and Small and Medium Enterprises (SMEs) of affected areas by the banks against their financing for production, working capital loans and advances.
According to the circular, refinance under the scheme will be provided to banks at 5pc per annum.
The banks will be permitted to charge a maximum spread of 3pc from the borrowers. Therefore, credit to SMEs and farmers will be available at 8pc per annum.
All categories of farmers (owners, owner-cum-tenants and tenants) of the specified areas will be eligible for agricultural loans under the scheme. Principal amount of loans under the scheme will have to be repaid on agreed date between bank and the borrower within a maximum period of one year.
v.nce scheme ha.mein nay bhe loan lna h.plz tell me procedure.