State Bank of Pakistan (SBP) increases the supporting loan limit for women entrepreneurs from Rs 1.5 million to Rs 5 million. Taking a huge step towards boosting business activities in the country.
According to a press release issued by the Central Bank of Pakistan which declares that the rescheduling of the finance scheme is an aim to motivate and encourage women entrepreneurs to take part in the revival of the country’s economy.
2/2 In 2017, SBP had introduced the Refinance and Credit Guarantee Scheme for Women Entrepreneurs to promote financial inclusion of women. Financing is provided to women entrepreneurs at maximum rate of 5%. Also, 60% risk coverage is available to the banks.— SBP (@StateBank_Pak) August 18, 2020
The SBP revert their decision after feedback from numerous stakeholders related to the limitation in the financing structure, as the current funding is not enough to cover the business expenses particularly the growing of Small and Medium Enterprises (SMEs).
The restructuring in the finance scheme by SBP that includes increasing loan limit for women entrepreneurs is also to comply with government policy, as the Federal government wants to recover and needs support in economic activities. Therefore, the State Bank of Pakistan reveals that its main objective is to support this cause along with improving access to finance for important fragments containing women entrepreneurship.
Three years back in 2017 State Bank of Pakistan announced a refinance and credit guarantee scheme for women entrepreneurs who belonged from neglected and undeserved areas in order to provide more chances to flourish along with following financial inclusion. However, after that, the scheme covered the whole country.
Through this financing scheme, women entrepreneurs or any other looking to enter their favorite field can possibly grow their reach and gain financial profit in the hope to enhance their financial standing and chase their goals and ambitions.