Rs2.9 bln loan disbursement from SBP saves 30,000 workers from joblessness

Sep 01, 2020: A sum of Rs 2.9 billion soft term loan disbursement to 109 business entities under SBP Rozgar Scheme in Multan has saved around 30,000 workers from joblessness and would be instrumental in offsetting the economic slowdown triggered by the coronavirus lockdown.

A help desk of State Bank of Pakistan (SBP) has been set up at Multan Chamber of Commerce and Industry (MCCI) for the convenience of trade and industrial firms with deployment of a senior officer to guide them how to avail this opportunity of loans at a mark up rate that is as low as 3-5 per cent.

There is six-month grace period and loan repayment was required in two years.

Exactly 109 business entities availed the schemes that saved around 30,000 workers associated with these businesses from loss of means of earning and overall around 150,000 people would be

benefitted if their families are taken into account, an official said on Tuesday.

Making it more attractive for businesses and industries, SBP has also reduced the risk factor by introducing a revolutionary clause transforming the initiative into a Risk Sharing Facility (RSF). Previously, when some firm would avail a loan worth Rs 10 million, it would have to arrange a surety worth Rs 20 million.

However, the RSF meant the loan seeking company would have to arrange Rs 4 million surety or guarantee to get a loan worth Rs10 million as the rest of the Rs 6 million surety would be provided by SBP.

The scheme was launched to help businesses and industry hurt by the coronavirus lockdown to stand on its own feet to bring the production level back to normal and ensure that workers continue to earn livelihood for their siblings.

Any industry or SME whose business was not documented can also avail this facility from the SBP. Businesses and industry can seek loan worth Rs 1 billion, at the most, under this low mark up scheme.

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