To enable small business owners in the country to easily access finances, the State Bank of Pakistan (SBP) has unveiled a scheme under which SMEs can get loans without offering any security or collateral. This scheme brand named ‘SME Asaan Finance (SAAF)’ has been launched in collaboration with the Pakistan government. It would prove immensely useful to SMEs that cannot offer any security or collateral to access bank finance. Under SAAF, selected banks in Pakistan will get refinance from SBP at 1 percent per annum, and these banks can extend loans to SMEs at end-user rate of 9 percent.
