SBP launches refinance, credit guarantee scheme for women entrepreneurs in underdeveloped areas

QUETTA: The State Bank of Pakistan (SBP) on Friday launched “Refinance and Credit Guarantee Scheme for Women Entrepreneurs in Underserved Areas” at an impressive ceremony in Quetta.

Governor SBP Tariq Bajwa, while addressing the launch ceremony, reiterated the institution's commitment towards sustainable and inclusive economic growth across Pakistan.

“Women are central to this growth paradigm," said Bajwa.

The governor informed the audience that it is for the first time in Pakistan's history that a scheme with zero per cent refinance rate and 60pc risk coverage for small businesses run by women entrepreneurs has been rolled out.

“This scheme is an affirmative action by the State Bank to encourage the flow of funds to small enterprises run by women in underserved areas of Pakistan. The scheme earmarks, at least 20pc of funds for Balochistan” said the SBP governor.

He also expressed his firm hope that banks will make all out efforts in making the scheme a success. He also told the banks that SBP will monitor the progress of the scheme closely. 

Chief guest on the occasion, Speaker Balochistan Assembly Rahila Durrani, lauded SBP’s scheme for small businesses run by women entrepreneurs of Pakistan, particularly Balochistan. 

She also expressed hope that such attractive financing schemes would help poor women overcome their financial problems and hence bring prosperity to the entire province.

Earlier in the day, the SBP governor called on Governor Balochistan Mohammad Khan Achakzai and apprised him of SBP’s special focus on agriculture, SMEs and low-cost housing in all underserved areas of Pakistan particularly Balochistan. 

Governor Balochistan thanked Bajwa for his efforts in promoting access to finance for the underserved and the under banked.

Bajwa also met with members of Quetta Chamber of Commerce and Industry (QCCI). The office holders of QCCI, while welcoming governor SBP, apprised him of issues being faced by the business community of Quetta. The governor assured members of QCCI of his help in resolving their genuine grievances.

Salient features of the scheme 

• This facility is for women entrepreneurs in underserved areas of the country for setting up of new businesses or expansion of existing ones

• SBP will provide refinance to banks at 0pc.

• Maximum financing amount is Rs1.5 million.

• Maximum financing period is 5 years with grace period of up to 6 months.

• End user rate is 5pc which is locked in for financing period.

• 60pc risk coverage is available against outstanding principal.