With certain modifications to its SME Loan Regulations, the State Bank of Pakistan (SBP) has made a major move to promote industries and small and medium-sized businesses (SMEs) by raising loan ceilings.
As per the latest circular released by the State Bank on the modified lending restrictions, companies can now obtain loans of up to Rs. 500 million for medium-sized enterprises and up to Rs. 100 million for small enterprises. With the limit for small firms increased by 300% and for medium-sized businesses by 150%, this represents a significant increase in the availability of loans.
Experts predict that this program will boost borrowing by the private sector, especially in light of the recent interest rate reduction.
