Collateral-free Asaan Finance Scheme by State Bank will be a game changer for SMEs

Asaan Finance

Governor of the State Bank of Pakistan (SBP) Reza Baqir said that the SBP Asaan Finance Scheme (SAAF) will be a game-changer in improving access to finance for small and medium enterprises (SMEs), as it tackles the long-standing issue of SMEs’ lack of collateral.

He was speaking at Multan Chamber of Commerce and Industry about SBP’s many initiatives to help businesses, particularly SMEs.

The governor stated that the central bank has been taking numerous steps to assist the business community in order to stimulate stable economic growth in the country.

Read more: SMEs likely to get Rs 60 billion collateral-free lending from eight banks

The arrival of a unique collateral-free loan scheme for SMEs, SME Asaan Finance (SAAF), SBP’s concessionary refinance schemes for various sectors, measures taken to combat the Covid-19 effects, digitization of banking systems, and persuasion of banks to augment financing to the business community, particularly priority sectors, are just a few of the major initiatives.

During his discussion with the business community, Dr. Baqir stated that the Covid-19 pandemic was an unprecedented disaster that had a national and international impact on the economic lives of individuals and businesses.

He emphasized that SBP’s strong policy reaction during the pandemic, particularly refinance schemes like as TERF and Rozgar, not only gave relief to business personnel, but also created the groundwork for the country’s medium to long-term industrialization.

The governor stated that the SBP is working diligently to execute the government’s Mera Pakistan Mera Ghar (MPMG) initiative in order to offer affordable housing to the citizens. Individuals who are building or purchasing a new home for the first time can use this facility to obtain bank financing at subsidized and inexpensive mark-up rates.

SBP has taken a number of steps to improve the regulatory environment for this sector’s growth. Since January 2021, MPMG has had a complaint resolution process available through an online complaint management system.

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