Karachi: The State Bank of Pakistan (SBP) has introduced cheap loans for businesses under a refinance scheme in a bid to prevent layoffs in the wake of the economic crunch caused by COVID-19, a news source reported.
The ‘Refinance Scheme for Payment of Wages and Salaries to the Workers and Employees of Business Concerns’ will be made available to businesses throughout the country via commercial banks.
The loan scheme will cover contractual jobs, permanent jobs, outsourced workers, and daily wagers. According to details, the refinance scheme would provide salaries and wages expenditure from April to June to businesses that do not sack their employees in the said period.
Further, the scheme would offer mark-up on loans up to 5% and for active taxpayers, a reduced rate of 4% mark-up on loan has been set. The scheme is designed to prevent layoffs small businesses.
Those businesses whose salary and wage expenses reach up to PKR 200 million will be able to receive the full amount, while those whose salary expenses amount to PKR 500 million will receiving 50 percent of the financing. Those businesses whose expenses fall between PKR 500 million and PKR 200 million will avail 75 percent of their salary expenses for three months.
Additionally, banks will not charge any credit limit fee, loan processing fee, and pre-payment penalties for loans taken under the refinance scheme. The borrowers will be given a six month grace period and the principal amount should be paid within two years.