Here’s all that you need to know about SBP’s new ‘refinance scheme’ to avoid layoff of employees

The scheme will be offered to all businesses in the country through banks and will cover all types of employees.


The State Bank of Pakistan has launched a transient refinance scheme for businesses. The scheme will allow Payment of Salaries and Incomes to the Employees and Staff of Business Concerns. The main objective of this service is to encourage businesses to not lay off their employees during the coronavirus pandemic.

The Governor of the SBP, Raza Baqir, said, “Businesses that keep their workers for 3 months will receive a mark-up on the loans of up to 5 percent under the scheme. Active taxpayers will be given the loans at a mark-up of 4 percent which will be payable in up to 2.5 years and no standard interest will be charged for the first six months.”

All types of employees 

The scheme will be accessible to all businesses in the country through banks and will cover all types of employees including permanent, contractual, and daily wagers as well as outsourced workers. The scheme will also offer funding for incomes and salaries expenses for three months from April to June 2020 for those businesses that do not layoff their workers for this period.

The banks will not demand any loan-processing charges, credit limit fee or prepayment fines for loans under the scheme. A grace period of 6 months will be allowed to the borrowers while the payment of the main amount will be made in 2 years.

The central bank believes that one of the main benefits of the scheme is that companies retaining workers on their payrolls will be able to increase production rapidly once the situation stabilizes. The scheme will ease the liquidity constraints of the businesses and they can use their accessible financial assets to meet other working investment requirements.

Interested people can access information of the scheme through following links

Link 1

Link 2

What are your views on this? Share in the comments bar below.

  • Is this loan is capable for the small industry just like ice factory and in this factory 14 employees are working there at right now

  • What about the govt salaried employees loans corona also damage govt employees What action taken by Bank’s to facilitate the govt employees

    • Pls explain what damage corona has done to govt. employees???

      Rather than sitting homes idle doing nothing and still enjoying salaries and benefits in full.

      Only loss they suffered is speed/ undertable money they are unable to earn due to closure of businesses.

  • Wo employees jinhon ne advance salary lia huwa hy un k liye b koe relief milega.

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