Refinance Facility for Working Capital – SBP Scheme

This State Bank of Pakistan (SBP) refinance facility is designed to support small enterprises and low-end medium enterprises (MEs) by providing access to affordable long-term financing. It enables SMEs to meet working capital needs, purchase new generators, and invest in local or imported machinery for business setup or BMR (Balancing, Modernization, and Replacement) of existing units.

Overview – Refinance Facility for Working Capital – SBP Scheme

Under this SBP-backed scheme, eligible SMEs can avail financing for:

Local purchases or import of new machinery
BMR (Balancing, Modernization & Replacement) of existing SME units
Setting up new SME units
Purchase of new generators

Financing available only through LC for imported machinery
Financing covers C&F value (for imported) or ex-factory/showroom price (for local machinery)
End-user markup rate: 6%
SBP refinance rate: Up to 100% at 2%
Maximum tenor: Up to 10 years (including grace period of up to 6 months)
Collateral: As per Allied Bank’s credit policy