INTRODUCTION
Small and Medium Enterprise which has contributed significantly to Pakistan’s GDP and export earning, can do still better with hand holding and support services. They have always been short of business support and regulatory and financial assistance. The financial sector has been providing only 10 percent of their overall credit to SMEs while 90 percent is given to large scale trade, commerce and industry.
The commercial banks provide credit only to their well established and large scale trading and manufacturing customers, because it is easy to handle and convenient to support for them.
However the government has made efforts to create such an operating environment which would provide the SMEs with access to the formal banking sector for financial and regulatory support. These efforts include the establishment of SME Bank in Pakistan
SME Bank Ltd has been established in January 2002, through the amalgamation of SBFC (Small Business Finance Corporation) and RDFC (Regional Development of Finance Corporation) as a result of the financial sector reforms, introduced by the Government of Pakistan. This bank aims to meet the financial needs of small and medium entrepreneur, which are not being addressed currently.
The State Bank of Pakistan
The SME Bank will reach its target market through programme lending schemes. These are customized financial packages for various sectors of the economy, such as marble, gems and jewellery, auto parts vendors, carpet manufacturer, educational institutions, marine fisheries, date processing, and information technology etc. the financial need of each target market have been studied realistically and the process of evaluating the loan application from the borrowers has been made very fast.
The SME Bank is not only to serve the SMEs sector but it has also been asked to encourage women-entrepreneur throughout contributes their due share in the national economy.
Since Financial assistance is not the only solution for the development of small and medium enterprise, efforts are being make by the government, state bank of Pakistan, other regulatory authorities and development and financial institutions, to develop a conducive environment and simple regulatory system and legal procedures for the success and long term sustainability of SME bank of Pakistan
ü REGISTERED OFFICE ADDRESS:
40, JANG BUILDING FAZAL-E-HAQ ROAD , ISLAMABAD
ü AUTHORISED CAPITAL: Rs.10000000000
ü PAID UP CAPITAL Rs.1000000
ü CEO NAME Mr. R. A. Chughtai
ü INCORPORATE DATE: 11/16/2001
ü AUTHORISED CAPITAL SHARES Rs.1000000000
ü PAID UP CAPITAL SHARES: Rs.100000
To support and develop the SME sector in Pakistan
BANK'S MANAGEMENT
ü Mr. R. A. Chughtai President & CEO
ü Mr. Mehfooz Elahi Piracha Special Assistant to the President
ü Mr. Sardar Usman Rashid Head Marketing and Business Development Division
ü Mr. Marghoob Ghazali Chief Financial Officer & Company Secretary
ü Mr. Nasser Durrani Head Human Resource Division
ü Mr. Raja Muhammad Altaf Head Services Division
ü Mr. Ali Akbar Chaudhary Head Internal Audit
ü Mr. Syed Akbar Shah Head Investigation Division
ü Mr. Muhammad Azam Khan Head Special Asset Management Division
ü Mr. Ihsanul-Haq Khan Head Credit Risk Management Division
ü Mr. Muhammad Mubeen Mufti Head Information Technology Division (Acting)
ü Mr. Muhammad Khalid Head Treasury Division
PRESIDENT AND CEO Mr. R A GHUGHTAI
Mr. R. A. Chughtai has taken over charge as President and CEO of SME Bank Ltd in March 01, 2007. He has more than forty years of experience and has held senior positions at different reputable institutes such as State Bank of Pakistan, Zarai Taraqiati Bank Ltd. etc. He has replaced Mr. Mansur Khan.
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| 17-E. Edwards Road, PH# (042) 7243389, 7312078 | 1st Floor, (Prime Bank Ltd) Prince Fan Colony, G.T.Road Gujrat PH# (0533) 513242 | ||||||||
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| PH# (061) 9200246, 9210181 | Sahiwal PH# (0404) 220352 | ||||||||
| 27-A, Opposite PH# (062) 9255393 | |||||||||
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| 801-802, 8th Floor, Park Avenue, 24-A, Block PECH, Shahrah-e-Faisal, PH# (021) 4538041, 4314749 | Badri Manzal, PH# (022) 9200717 | ||||||||
| Banglow No. 104, Akhuwat Nagar, Sukkur Ph# (071) 5630554 | Ground Floor Usman Complex, PH# (081) 9202337 (081) 9202898 Fax# (081) 9202386 | ||||||||
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| 1st Floor, 34- The Mall PH# (091) 5274997, 5274963 Fax# (091) 9211465 | Awan Huts, Lala Rukh Colony, Abbottabad PH# (0992) 9310159 | ||||||||
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WHAT ARE SMES
As defined by State Bank of Pakistan - SME (Small and Medium Enterprise) means an entity, ideally not a public limited company, which does not employee more than 250 persons (if it is manufacturing concern) and 50 persons (if it is trading / service concern) and also fulfills the
Following criteria of either ‘a’ and ‘c’ or ‘b’ and ‘c’ as relevant:
(a) A trading / service concern with total assets at cost excluding land and buildings up to Rs 50 million.
(b) A manufacturing concern with total assets at cost excluding land and building up to Rs 100 million.
(c) Any concern (trading, service or manufacturing) with net sales not exceeding Rs 300 million as per latest financial statements.
(b) A manufacturing concern with total assets at cost excluding land and building up to Rs 100 million.
(c) Any concern (trading, service or manufacturing) with net sales not exceeding Rs 300 million as per latest financial statements.
SIGNIFICANCE OF SMES
SMEs are considered the engine of economic growth in both developed and developing countries, as they:
Provide low cost employment since the unit cost of persons employed is lower for SMEs than for large-size units.
Provide low cost employment since the unit cost of persons employed is lower for SMEs than for large-size units.
· Assist in regional and local development since SMEs accelerate rural industrialization by linking it with the more organized urban sector.
· Help achieve fair and equitable distribution of wealth by regional dispersion of economic activities.
· Contribute significantly to export revenues because of the low-cost labour intensive nature of its products.
· Have a positive effect on the trade balance since SMEs generally use indigenous raw materials.
· Assist in fostering a self-help and entrepreneurial culture by bringing together skills and capital through various lending and skill enhancement schemes.
· Impart the resilience to withstand economic upheavals and maintain a reasonable growth rate since being indigenous is the key to sustainability and self-sufficiency.
PROBLEMS FACED BY PAKISTAN
SME FINANCING AND HAND-HOLDING
Research reveals that despite the lack of collateral, SMEs are a better credit risk, as the default rate of this sector is much below that of large enterprises through out the world; SMEs have provided tremendous opportunities to financial institutions to design various tools for the sector's development (e.g. Program Lending Schemes, Credit Scoring, Venture Capital Financing, etc.). Then there are clusters, technology parks and industrial estates, all being fuelled by the dynamism and vibrancy of small and medium enterprises. Banking institutions, running on Islamic principles, are also experimenting with interest free financial instruments (e.g. Mudarabah, Murabaha, Ijarah etc.) for this sector.
PRODUCT OFFERED BY SME BANK
There are two type of product offered by SME bank:
1 SME Commercial Banking Product
2 SME Lending Product
COMMERCIAL BANKING PRODUCTS
1. SME BANK'S QATRA QATRA DARYA
(Daily product basis: for Individuals and Business Concerns)
PRODUCT FEATURES
ü For Individuals, Proprietorship, Partnership and Limited Companies starting from Rs 25,000
· profit rates up to 5 %
· Free Online Transactions, PO ’s, DD's, and TT’s.
· Free Issuance of ATM card.
· Free Cheque books
· Free Life Insurance
ü Minimum account opening balance: Rs. 25,000
ü Monthly Average Balance Requirement Rs. 25,000
ü Minimum Balance fee: Rs 25 per month based on balances below Rs. 25,000
ü Profit Structure Rate per Annum
Less than or equal to Rs 100,000 1.50%
Rs 100,001 to Rs 300,000 2.50%
Rs 300,001 to Rs 500,000 3.50%
Rs 500,001 to Rs 800,000 4.00%
Rs 800,001 to Rs I, 000,000 4.50%
Rs 1,000,001 & above 5.00%
ü Free Banking services if monthly average balance is Rs 1 M or more:
· All online transactions
· All pay orders, DDs and TTs
· Cheque books
· SME bank ATM card (to singly authorized customers only)
ü Special Privileges for individuals, including joint, proprietorship & partnership-ship accounts with balance over Rs 25,000.
Privilege Coverage
Free life insurance cover Up to Rs1 m
Accidental death cover Up to Rs2 m
Permanent disability cover Up to Rs1 m
Charges for account holder Free of charge
ü New account eligibility, for insurance cover, starts after 90 days from account opening.
Insurance cover provided by EFU Life Insurance.
Quick processing time for borrowing against funds.
Insurance cover provided by EFU Life Insurance.
Quick processing time for borrowing against funds.
ü The insurance cover is provided to the extent of average balance maintained in the account during last 90 days in case of natural death, whereas in case of accidental death the coverage provided is double. For of permanent disability, due accident, a percentage of sum insured is paid.
ü In case of joint or partnership accounts the benefit is apportioned pro rata for each account holder, i.e. if two account holders then the benefit is half for each, if three then a third for each, and so on.
OTHER TERMS AND CONDITIONS
ü Fees and other charges will be as per applicable schedule of bank charges.
ü Zakat and Withholding Tax rules applicable
2. SME BANK'S QATRA QATRA DARYA
(Saving Accounts: for Individuals)
PRODUCT FEATURES
ü profit rates up to 3.50 %
ü Free Life Insurance
ü Minimum account opening balance: Rs.10,000 (for insurance cover)
ü Monthly Average Balance Requirement: Rs.10,000
ü Profit Structure: 3.50 % per Annum
ü Special Privileges if monthly average balance Rs.10,000 or more
Privilege Coverage
Free life insurance cover Up to Rs1
Accidental death cover Up to Rs2 m
Permanent disability cover Up to Rs1 m
Charges for account holder Free of charge
ü New account eligibility, for insurance cover, starts after 90 days from account opening.
Insurance cover provided by EFU Life Insurance.
Quick processing time for borrowing against funds.
Insurance cover provided by EFU Life Insurance.
Quick processing time for borrowing against funds.
ü The insurance cover is provided to the extent of average balance maintained in the account during last 90 days in case of natural death, whereas in case of accidental death the coverage provided is double. For of permanent disability, due accident, a percentage of sum insured is paid.
ü In case of joint or partnership accounts the benefit is apportioned pro rata for each account holder, i.e. if two account holders then the benefit is half for each, if three then a third for each, and so on.
OTHER TERMS AND CONDITIONS
ü Fees and other charges will be as per applicable schedule of bank charges.
ü Zakat and Withholding Tax rules applicable
3. SME Bank's QATRA QATRA DARYA
(Current Account: for Individuals and Business Concerns)
PRODUCT FEATURES
ü Free Online Transactions, PO 's, DD's, TT's.
ü Free Issuance of ATM card.
ü Free Cheque books
ü Free Life Insurance
ü Minimum account opening balance: Rs. 10,000 (for insurance cover)
ü Monthly Average Balance Requirement Rs. 10,000
ü Minimum Balance fee: Rs 25 per month on balances below Rs.10,000
ü Special Privileges if monthly average balance Rs.10,000 or more
Privilege Coverage
Free life insurance cover Up to Rs1 m
Accidental death cover Up to Rs2 m
Permanent disability cover Up to Rs1 m
Charges for account holder Free of charge
ü New account eligibility, for insurance cover, starts after 90 days from account opening.
Insurance cover provided by EFU Life Insurance.
Quick processing time for borrowing against funds.
Insurance cover provided by EFU Life Insurance.
Quick processing time for borrowing against funds.
ü The insurance cover is provided to the extent of average balance maintained in the account during last 90 days in case of natural death, whereas in case of accidental death the coverage provided is double. For of permanent disability, due accident, a percentage of sum insured is paid.
ü In case of joint or partnership accounts the benefit is apportioned pro rata for each account holder, i.e. if two account holders then the benefit is half for each, if three then a third for each, and so on.
OTHER TERMS AND CONDITIONS
ü Fees and other charges will be as per applicable schedule of bank charges.
ü Zakat and Withholding Tax rules applicable
4. MAHAANA AAMDAN ACCOUNT
1AQZW1SME Bank brings to you the opportunity to maximize the utilization of your funds. SME smart term deposit plans not only gives you flexibility of choices in term of selecting the profit payment plan, but a high return as well, because we know that you only go for the best.
HAVE A LOOK AT OUR REMARKABLE OFFER
ü Invest as low as Rs 100,000 for 1 Year and earn a profit of Rs 791 per month, or
ü Invest as low as Rs 100,000 for 2 Years and earn a profit of Rs 854 per month.
ü A rewarding profit is automatically credited to your Qatra Qatra Darya Account month after month, which provides the flexible power to save with additional profit or to spend as you like; with the benefit of free life insurance.
ü Premature encashment facility.
ü Quick processing time for borrowing against funds.
ü Free SME ATM Card.
OTHER TERMS AND CONDITIONS
ü Fees and other charges will be as per applicable schedule of bank charges.
ü Zakat and Withholding Tax rules applicable
5. PLS SAVING ACCOUNT
Profit payment bi-annually, calculated on minimum balance during the month 3.25%
6. SME ROZANA IZAFA AUR MAHANA MUNAFA
(Monthly Payment of Profit calculating on daily basis)
From 50,000 to 999,999 4.00%
From 1.000 M to 9.999 M 4.75%
From 10.000 M to 49.999 M 5.50%
Above 50.000 M 6.25%
7. SME REGULAR TDR
(Profit to be paid after maturity of the TDR)
7 Days Short Notice Deposit 2.75%
30 Days Short Notice Deposit 3.50%
SME FIXED TERM DEPOSIT PROFIT PAYABLE ON MATURITY
1 Month 6.50%
3 Months 7.50%
6 Months 8.50%
1 Year 10.00%
2 Year 10.50%
3 Year 11.00%
8. BASIC BANKING ACCOUNTS
PRODUCT FEATURES
ü The minimum initial deposit will be Rs 1,000
ü No profit will be paid
ü No limit on minimum balance. In case where balance in BBA remains nil' for a continuous six months period such accounts will be closed
ü No fee (service charges) for maintaining BBA
ü Customers will be allowed a maximum of two deposit transactions and two cheques withdrawals are allowed, free of charge, through cash/clearing per month
ü Statement of account will be issued once in a year
9. INDICATIVE PROFIT RATES FOR VARIOUS DEPOSIT SCHEMES (ISLAMABAD
Period Rates
Daily Deposit A/c (DDA) 1.00% p.a.
Standard Deposit A/c (SDA) 1.00% p.a.
Term Certificate of Deposit (TCD) 1 month nil
3 month nil
6 month nil
1 year 1.00% p.a
2 years 1.25% p.a
3 years 1.50% p.a
4 years 1.75% p.a
5 years 2.00% p.a
ü Special Rates for deposits exceeding Rs. 20 Million may be negotiated with the customers on case to case basis. The terms & conditions are subject to the approval of the competent authority
ü Kindly note that above profit rates are liable to compulsory deduction of withholding tax @ 10%
ü Premature encashment permissible at 0.25% less than the period for which deposit was maintained
LENDING PRODUCTS
Any commercially viable business proposal merits SME Bank's support. It is Bank's effort to assist and support enterprises that use indigenous raw material, add value and are export oriented. Such enterprises are vital to our economy since these are labor intensive and thus create employment opportunities.
SME Bank is reaching out to small and medium entrepreneurs through:
4. Leasing through its subsidiary
1. SME SMART LOAN FACILITY (SLF)
(For fixed and running needs of small businesses loans for your dynamic businesses)
This product has been specifically designed for existing small scale businesses to cater the fixed and current investment needs of those businesses. This is a term loan facility to be approved for a period up to three years and to be repaid in equal monthly installments. The existing SME Bank borrowers can also avail this facility. The business to receive this type of facility must exist for a minimum of two years and must have banking relations with a bank maintaining their bank account for at least two months with any commercial bank and in future must have their business transactions through SME bank exclusively.
WHAT WE ARE OFFERING
ü Flexible loan period from 3 Months to 3 years
ü Loan Amount: Rs 50,000 to Rs 500,000
ü Loan term: 3 to 36 months payable in flexible monthly installments.
ü Loan Purpose: To meet the current and fixed asset investment needs
WHO CAN APPLY?
Sole proprietors, partnership firms, and all other legal entities
ü The business must exist for two (2) years
ü Bank account desirable
COLLATERAL/SECURITY
ü Mortgages (Urban property)
ü Cash/ near cash security with 10 to 20% margin
APPLY TODAY!
Please bring with you the following documents:
ü Computerized NIC
ü Business registration documents
ü Financial accounts/business transaction accounts.
2. SME ASSET FINANCE
SME bank introduces a product that is specifically design to cater to the long term financing needs of SMEs. The product is offered to all type of businesses and can be used to meet the business fixed asset investment needs such as purchase of plant and machinery, equipment and building premises.
WHAT WE ARE OFFERING
ü Flexible loan period from 1 year to 4 years.
ü Loan Amount: Rs 500,000 to Rs 30 million.
ü Loan term: 12 to 48 months payable in flexible monthly installments.
ü Loan Purpose: To meet the business fixed asset investment needs
WHO CAN APPLY?
ü Sole proprietors, partnership firms, and all other legal entities
ü The business must exist for two (2) years
ü Bank account desirable
COLLATERAL/SECURITY
ü Mortgages (Urban property).
ü Hypothecation of plant and machinery stocks.
ü Pledge of Government securities.
ü Repeat borrowers with good credit history with SME bank may benefit from higher loan amounts against collateral or less collateral for equal loan amounts.
APPLY TODAY!
Please bring with you the following documents:
ü Computerized NIC
ü Business registration documents
ü Financial accounts/business transaction accounts.
3. SME RUNNING FINANCE
This product is specially design to cater to the short term financing needs of SMEs. This product is offered to all types of businesses and can be used to meet the working capital needs, such as purchase of stocks (raw material/ finished/ semi finished/ work in process/ unfinished goods) and spare parts.
WHAT WE ARE OFFERING
ü Quick processing time.
ü Loan Amount: Rs 500,000 to Rs 30 million.
ü Loan Purpose: To meet the short term working capital needs.
WHO CAN APPLY?
ü Sole proprietors, partnership firms, and all other legal entities
ü The business must exist for two (2) years
ü Bank account desirable
COLLATERAL/SECURITY
ü Mortgages (Urban property).
ü Hypothecation of plant and machinery stocks.
ü Pledge of Government securities.
ü Repeat borrowers with good credit history with SME bank may benefit from higher loan amounts against collateral or less collateral for equal loan amounts.
APPLY TODAY!
Please bring with you the following documents:
ü Computerized NIC
ü Business registration documents
ü Financial accounts/business transaction accounts.
4. LEASING THROUGH ITS SUBSIDIARY
SME Leasing Limited provides a window to future with one of the largest branch network in Pakistan
SME Leasing Limited, which is serving the burgeoning needs of the SME sector, has offices in nearly all the major cities of Pakistan
SME Leasing Limited are the only leasing company in the country that provides perfect financial solutions only for SMEs, They have tailor made products to fulfill the requirements of this sector. The major 03 important areas of service are:
1 Leasing
2 Working Capital
3 Syndication Arrangement
1. LEASING
”A lease is an agreement whereby the lessor (Leasing Company), transfers an asset and the right to use it to another party, called the lessee in exchange for periodic lease payments for an agreed period of time.”
Leasing is an attractive way for many entities to acquire the right to use an asset without actually buying the asset due to following reasons. Financing can be arranged with a small amount of down payment. In leasing clients can avail lease financing facility for new as well as old plant & machinery, other equipment, commercial vehicles etc.
HOW TO APPLY
Following are the steps you have to take to get the financing facilities from SME Leasing Limited.
ü Get an application from one of their designated branches or Download the Application from website.
ü Fill it up with the required information.
ü If you need assistance in filling up the form, their staff will be there to help you.
ü After completing the form, kindly hand it over to the credit officer along with the required documents. These documents have been listed in the application form.
ü Get the approval & enjoy the business
PRODUCT
Major products were emphasized & offered with great flexibility, those are given below.
ü SME Auto Plus
ü SME Medi Plus
SME AUTO PLUS
As the name suggests a product for transport sector - Does not cover only Buses / Coaches or Trolleys or Oil tankers but also smaller vehicles like Bolan / Ravi / Shahzore Pickups or most of the LCVs.
WHO CAN APPLY
If you are
- Not a public limited company and does not employ more than 250 persons (in case of manufacturing concern) and 50 persons (in case of trading / services concern)
- A trading concern with total assets excluding land & building up to Rs. 50,000,000/-
- A manufacturing concern with original value of total assets excluding land & building up to Rs. 100,000,0000/-
- A concern (trading services, manufacturing) with net sales not exceeding Rs. 300,000,000/- as per latest financial statements.
If you
- are not maintaining accounts or record of your business
- have fear of talking to bankers
- think that you can not avail finance facility
- think you can not manage finance facility
- Photo copy of NIC of the Proprietor & Guarantor
- Passport size photograph of Proprietor & Guarantor
- Company Profile
- Bank Statement (Last six months)
- Proprietorship certificate from the bank
- Financial statements (Last three years)
- Certified by chartered accountants if the lease amount is between Rs. 2 to 10 million
- Audited by chartered accountants if the lease amount is equal to and above Rs. 10 million
- Quotation (if needed)
- Tax Return (Last two years)
- Copy of NTN Certificate
- Copy of utility bills (Last three months)
- Tenancy agreement (if any)
- Photo copy of NIC of the Partners & Guarantor
- Passport size photograph of Partners & Guarantor
- Company Profile
- Partnership deed
- Bank Statement (Last six months)
- Partnership certificate from the bank
- Financial statements (Last three years)
- Certified by chartered accountants if the lease amount is between Rs. 2 to10 million
- Audited by chartered accountants if the lease amount is equal to and above Rs. 10 million
- Quotation (if needed)
- Tax Return (Last two years)
- Copy of NTN Certificate
- Copy of utility bills (Last three months)
- Tenancy agreement (if any)
- Photo copy of NIC of the Directors & Guarantor
- Passport size photograph of Directors & Guarantor
- Company Profile
- Bank Statement (Last six months)
- Financial statements (Last two years)
- Certified by chartered accountants if the lease amount is between Rs. 2 to 10 million
- Audited by chartered accountants if the lease amount is equal to and above Rs. 10 million
- Quotation (if needed)
- Tax Return (Last two years)
- Copy of NTN Certificate
- Copy of utility bills (Last three months)
- Tenancy agreement (if any)
- Article of Memorandum of Association
- Form 29
- Form A
SME MEDI PLUS
A unique product of leasing tailored for doctors / hospitals / for medical equipments
WHO CAN APPLY
If you are
- Not a public limited company and does not employ more than 250 persons (in case of manufacturing concern) and 50 persons (in case of trading / services concern)
- A trading concern with total assets excluding land & building up to Rs. 50,000,000/-
- A manufacturing concern with original value of total assets excluding land & building up to Rs. 100,000,0000/-
- A concern (trading services, manufacturing) with net sales not exceeding Rs. 300,000,000/- as per latest financial statements.
If you
- are not maintaining accounts or record of your business
- have fear of talking to bankers
- think that you can not avail finance facility
- think you can not manage finance facility
REQUIRED DOCUMENTS
Proprietorship Concern
- Photo copy of NIC of the Proprietor & Guarantor
- Passport size photograph of Proprietor & Guarantor
- Company Profile
- Bank Statement (Last six months)
- Proprietorship certificate from the bank
- Financial statements (Last three years)
- Certified by chartered accountants if the lease amount is between Rs. 2 to 10 million
- Audited by chartered accountants if the lease amount is equal to and above Rs. 10 million
- Quotation (if needed)
- Tax Return (Last two years)
- Copy of NTN Certificate
- Copy of utility bills (Last three months)
- Tenancy agreement (if any)
Partnership Concern
- Photo copy of NIC of the Partners & Guarantor
- Passport size photograph of Partners & Guarantor
- Company Profile
- Partnership deed
- Bank Statement (Last six months)
- Partnership certificate from the bank
- Financial statements (Last three years)
- Certified by chartered accountants if the lease amount is between Rs. 2 to10 million
- Audited by chartered accountants if the lease amount is equal to and above Rs. 10 million
- Quotation (if needed)
- Tax Return (Last two years)
- Copy of NTN Certificate
- Copy of utility bills (Last three months)
- Tenancy agreement (if any)
Private Limited Concern
- Photo copy of NIC of the Directors & Guarantor
- Passport size photograph of Directors & Guarantor
- Company Profile
- Bank Statement (Last six months)
- Financial statements (Last two years)
- Certified by chartered accountants if the lease amount is between Rs. 2 to 10 million
- Audited by chartered accountants if the lease amount is equal to and above Rs. 10 million
- Quotation (if needed)
- Tax Return (Last two years)
- Copy of NTN Certificate
- Copy of utility bills (Last three months)
- Tenancy agreement (if any)
- Article of Memorandum of Association
- Form 29
- Form A
2. WORKING CAPITAL
It's a cash financing facility for purchasing of raw materials, running & expansion of your business. The name of this product in SME Leasing is SME Cash Plus.
SME CASH PLUS
A product of Working Capital, ideally for small business entities in need of cash for its working capital requirements. Maximum of Rs. 2 million for a single client.
If you are
- Not a public limited company and does not employ more than 250 persons (in case of manufacturing concern) and 50 persons (in case of trading / services concern)
- A trading concern with total assets excluding land & building up to Rs. 50,000,000/-
- A manufacturing concern with original value of total assets excluding land & building up to Rs. 100,000,0000/-
- A concern (trading services, manufacturing) with net sales not exceeding Rs. 300,000,000/- as per latest financial statements.
If you
- are not maintaining accounts or record of your business
- have fear of talking to bankers
- think that you can not avail finance facility
- think you can not manage finance facility
REQUIRED DOCUMENT
Proprietorship Concern
- Photo copy of NIC of the Proprietor & Guarantor
- Passport size photograph of Proprietor & Guarantor
- Company Profile
- Bank Statement (Last six months)
- Proprietorship certificate from the bank
- Financial statements (Last three years)
- Certified by chartered accountants if the lease amount is between Rs. 2 to 10 million
- Audited by chartered accountants if the lease amount is equal to and above Rs. 10 million
- Quotation (if needed)
- Tax Return (Last two years)
- Copy of NTN Certificate
- Copy of utility bills (Last three months)
- Tenancy agreement (if any)
Partnership Concern
- Photo copy of NIC of the Partners & Guarantor
- Passport size photograph of Partners & Guarantor
- Company Profile
- Partnership deed
- Bank Statement (Last six months)
- Partnership certificate from the bank
- Financial statements (Last three years)
- Certified by chartered accountants if the lease amount is between Rs. 2 to10 million
- Audited by chartered accountants if the lease amount is equal to and above Rs. 10 million
- Quotation (if needed)
- Tax Return (Last two years)
- Copy of NTN Certificate
- Copy of utility bills (Last three months)
- Tenancy agreement (if any)
Private Limited Concern
- Photo copy of NIC of the Directors & Guarantor
- Passport size photograph of Directors & Guarantor
- Company Profile
- Bank Statement (Last six months)
- Financial statements (Last two years)
- Certified by chartered accountants if the lease amount is between Rs. 2 to 10 million
- Audited by chartered accountants if the lease amount is equal to and above Rs. 10 million
- Quotation (if needed)
- Tax Return (Last two years)
- Copy of NTN Certificate
- Copy of utility bills (Last three months)
- Tenancy agreement (if any)
- Article of Memorandum of Association
- Form 29
3. SYNDICATION ARRANGEMENT
SME bank limited also started to provide the advisory services for SMEs for smooth operations of their businesses, syndication & funds arrangement to fulfill their financial requirements.
GENERAL LENDING CRITERIA
For Proprietorship Concern
Financing Limit
- In case of working capital maximum limit of financing amount is up to Rs. 2 Million.
- In case of leasing we can go up to Rs. 40 Million.
- Loan provided by the company will not exceed 60% of the forced sale value of collateral.
Project's/Borrower's Eligibility
- The borrower should have a commercially viable business plan.
- The business concern should generate monthly revenue sufficient enough to pay out monthly rentals after meeting its expenses / operational expenditures or disclose any other sources of income for paying its monthly rentals.
- Adequate Debt Equity ratio.
- The business concern should fulfill the requirements of S.E.C.P regulations.
Collateral / Security
- Lease asset in the name of SME Leasing Limited.
- Hypothecation of stocks / additional security of Land and Building in case of working capital.
- Personal guarantees of proprietor & individual (guarantor) other than proprietor acceptable to SME Leasing Limited.
- Post dated cheques of monthly lease rentals for the entire lease period.
- Any other additional security / collateral mutually agreed by the lessee or lesser.
Repayments
- Flexibility is our motto.
- You may get the lease from 03 to 05 years as per your requirement with option to have equal installments (straight / structured).
- In case of working capital maximum tenure is 36 months.
Down payment
- It is flexible and depends on your requirements; ideally we prefer 15% or higher security deposit in the transaction.
Documents Required
- Completely filled in application form.
- Business Plan / Project Details.
- Photocopy of NIC of the proprietor & guarantor
- Passport size photograph of the proprietor & guarantor
- Profile of the Sponsor
- Bank Statement (Last one year)
- Proprietorship certificate from the bank.
- Financial Statements (Last three years)
- Certified by chartered accountants if the lease amount is between Rs. 2 to 10 million
- Audited by chartered accountants if the lease amount is equal to and above 10 million - Copy of utility bills (Last three months)
- Tenancy agreement (where applicable)
- Copy of NTN certificate (where applicable)
- Tax Returns (if available)
For Partnership Concern
Financing Limit
- In case of working capital maximum limit of financing amount is up to Rs. 2 Million.
- In case of leasing we can go up to Rs. 40 Million.
- Loan provided by the company will not exceed 60% of the forced sale value of collateral.
Project's/Borrower's Eligibility
- The borrower should have a commercially viable business plan.
- The business concern should generate monthly revenue sufficient enough to pay out monthly rentals after meeting its expenses operational expenditures or disclose any other sources of income for paying its monthly rentals.
- Adequate Debt Equity ratio.
- The business concern should fulfill the requirements of S.E.C.P regulations.
Collateral / Security
- Lease asset in the name of SME Leasing Limited.
- Hypothecation of stocks / additional security of Land and Building in case of working capital.
- Personal guarantees of proprietor & individual (guarantor) other than proprietor acceptable to SME Leasing Limited.
- Post dated cheques of monthly lease rentals for the entire lease period.
- Any other additional security / collateral mutually agreed by the lessee or lessor.
Repayments
- Flexibility is our motto.
- You may get the lease from 03 to 05 years as per your requirement with option to have equal installments (straight / structured).
- In case of working capital maximum tenure is 36 months.
Down payment
- It is flexible and depends on your requirements; ideally we prefer 15% or higher security deposit in the transaction.
Documents Required
- Completely filled in application form.
- Business Plan / Project Details.
- Photocopy of NIC of the proprietor & guarantor
- Passport size photograph of the proprietor & guarantor
- Profile of the Partners
- Bank Statement (Last one year)
- Partnership deed
- Partnership certificate from the bank
- Financial Statements (Last three years)
- Certified by chartered accountants if the lease amount is between Rs. 2 to 10 million
- Audited by chartered accountants if the lease amount is equal to and above 10 million - Copy of utility bills (Last three months)
- Tenancy agreement (where applicable)
- Copy of NTN certificate (where applicable)
- Tax Returns (if available)
Financing Limit
- SME can provide financing within the range of Pak Rs.50,000.- to Pak Rs. 2 Million
- Loan provided by the company will not exceed 60% of the forced sale value of collateral
Project's/Borrower's Eligibility
- The borrower should have a commercially viable business plan
- The business concern should generate monthly revenue sufficient enough to pay out monthly rentals after meeting its expenses / operational expenditures or disclose any other sources of income for paying its monthly rentals
- Adequate Debt Equity ratio
Collateral / Security
- Lease asset in the name of SME Leasing Limited.
- Hypothecation of stocks / additional security of Land and Building in case of working capital.
- Personal guarantees of proprietor & individual (guarantor) other than proprietor acceptable to SME Leasing Limited.
- Post dated cheques of monthly lease rentals for the entire lease period.
- Any other additional security / collateral mutually agreed by the lessee or lessor.
Repayments
- Flexibility is our motto.
- You may get the lease from 03 to 05 years as per your requirement with option to have equal installments (straight / structured).
- In case of working capital maximum tenure is 36 months.
Down payment
- It is flexible and depends on your requirements; ideally we prefer 15% or higher security deposit in the transaction.
Documents Required
- Completely filled in application form.
- Business Plan / Project Details.
- Photocopy of NIC of the proprietor & guarantor
- Passport size photograph of the proprietor & guarantor
- Profile of the Company
- Bank Statement (Last one year)
- Financial Statements (Last two years)
- Certified by chartered accountants if the lease amount is between Rs. 2 to 10 million
- Audited by chartered accountants if the lease amount is equal to and above 10 million - Form 29
- Form A
- Copy of utility bills (Last three months)
- Tenancy agreement (where applicable)
- Tax Returns (if available)
- Copy of NTN certificate (where applicable)
- Article of Memorandum of Association
References:
www.smebank.org/
www.smeda.org.pk/
www.linkedin.com/companies/sme-bank-limited
