The State Bank of Pakistan (SBP) has decided to give small and medium-sized businesses a major boost by increasing their financing limits, which is great news for the SME sector. According to a recent circular, the SBP has raised the small business loan in Pakistan from Rs. 25 million to Rs. 100 million. Not just that, even medium-sized businesses will now be able to secure loans up to Rs. 500 million, compared to the earlier limit of Rs. 200 million.
This move is seen as a step in the right direction to support the growth of SMEs, which are often considered the backbone of Pakistan’s economy. The central bank has also put out instructions for banks to adjust the value of any mortgaged liquid assets before determining the final loan amount for businesses. This means that the amount of assets pledged by the businesses will be deducted when calculating the loan limit, making the process smoother for both the banks and the borrowers.
The whole idea behind these changes, as per SBP, is to ensure that SMEs have better access to financing. This will not only encourage new businesses to step forward but will also help existing ones to expand their operations and grow their ventures without the usual financial hurdles.
Banks have been strongly urged to follow these new guidelines, which indicates how serious the State Bank is about making these changes impactful. With the SME sector being a key part of the country’s economic structure, this move can be a game-changer for many business owners looking to scale up.
 has decided to give small and medium-sized businesses a major boost by increasing their financing limits, which is great news for the SME sector. According to a recent circular, the SBP has raised the small business loan in Pakistan from Rs. 25 million to Rs. 100 million. Not just that, even medium-sized businesses will now be able to secure loans up to Rs. 500 million, compared to the earlier limit of Rs. 200 million.){kind=link}