Karachi, August 16, 2024: To enhance SMEs’ access to finance, the State Bank of Pakistan has raised the collateral-free lending limit to PKR 10 million for small and medium enterprises (SMEs).
Under the new regulations, banks and DFIs can now extend unsecured loans—based solely on the cash flows of an SME and backed only by personal guarantees—up to PKR 10 million per SME borrower.
This limit does not include clean consumer financing (such as credit cards and personal loans) allowed to an SME sponsor under the Prudential Regulations for Consumer Financing.
Banks and DFIs are instructed to circulate this amendment to all their offices and branches to ensure strict compliance. Failure to adhere to Prudential Regulations may result in punitive action under the relevant provisions of the BCO, 1962.
