CREDIT GUARANTEE SCHEME FOR SMALL AND RURAL ENTERPRISES

1. Borrower may be micro, small enterprises and farmers.
2. Finance shall preferably be extended to the following enterprises with risk coverage of 60%:
   • Startup Business
   • Women borrowers and
   •  Small & Rural enterprises operating in under-served areas of the country (list of underserved areas attached as annexure A).
3. For eligible borrowers, other than those mentioned above:



Risk Coverage	Collateral Value
60%	Clean Lending
40%	Value of Collateral up to 100% of loan
20%	Value of Collateral greater than the loan amount



4. Existing borrower can be given additional lending under this scheme.
5. Selection criteria for eligible borrowers will include:
   • Regular and estimable positive cash flows to ensure ability of debt servicing
   • Conformance to Prudential Regulations for SMEs/Agri/Micro Financing
   • Clean e-CIB record
6. SE may be extended financing up to 5 years and up to the maximum amount as allowed under SBP’s PR for small enterprises (currently at Rs. 25M)

To avail risk coverage against the loan, bank will follow the process and fulfill all terms and conditions as outlined under Credit Guarantee Scheme (CGS) for Small and Rural Enterprises http://www.sbp.org.pk/smefd/circulars/2017/C1.htm.

Note: The information contained in this website is for general information purposes only and is subject to change by SBP / NBP. For latest information on the said scheme, please visit nearest branch of NBP.