In a motivating step, SBP increases loan size for women entrepreneurs from Rs. 1.5 million to Rs. 5 million

The decision was the result of feedback SBP received from various stakeholders regarding the old financing limit.

The State Bank of Pakistan (SBP) introduced a Refinance and Credit Guarantee Scheme for women entrepreneurs to promote their financial inclusion in August 2017. Since then, the scheme is being offered to women all over Pakistan.

Under this scheme, SBP provides 60% of risk coverage and refinance at 0% to participating financial institutions if they agree to finance women entrepreneurs at a maximum end-user rate of 5%.

Recently, SBP has enhanced the financing limit under its Refinance and Credit Guarantee Scheme for Women Entrepreneurs from Rs. 1.5 million to Rs. 5 million.

The decision was the result of feedback SBP received from various stakeholders regarding the old financing limit. Many stated that Rs. 1.5 million was insufficient to cover women\\’s financing needs.

The bank authorities believe that the enhanced loan size will improve access to finance for the priority segments, including women entrepreneurs. SBP\\’s principal purpose of increasing the limit is to encourage women\\’s participation in the economy.

The new financing limit is in line with the Government\\’s policy to support and revive economic activities in the country.

After the enhancement, SBP expects women entrepreneurs to be attracted to set up new businesses and expand the scope of their existing activities. By offering concessional financing with enhanced limits under its scheme, the bank forecasts an increase in women\\’s financial inclusion.

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