It is a medium-term financing specially designed for SMEs with a longer term and is used to meet borrowers’ short / medium-term financing requirements. This type of financing does not have a fixed number of payments, as in the case of installment finance. Medium Term Running Finance is a renewable financing. Once the financing limit is approved, the borrower is free to withdraw amounts to the extent of that limit. The borrower can withdraw and repay the amount as many times as he wishes; but you have to pay a margin on the amount that you have actually used on a monthly basis.
SME Bank Medium Term Running Finance Products Features
1. Available for working capital requirements, e.g. purchase of stocks, raw materials, etc.
2. Financing facility available from Rs 0.5 million to Rs 100 million
3. The tenor is three years (reviewed annually).
4. Principal with multiple withdrawals / deposits to be adjusted on or before maturity.
5. Margin rate: 6 months KIBOR + 8.5% per annum (adjusted annually)
6. The surcharge will be paid monthly
7. Fast track processing for existing businesses for two years
8. Mortgage of urban residential / commercial / industrial properties acceptable to the bank (The maximum financing will be 70% of the Forced Sale Value of the guarantee and guarantee).
9. Plant and machinery / inventory mortgage (with a 25% margin)
10. Sponsor / Partner / Directors Personal Guarantees. Third Party Warranty (optional).
Who can Apply for SME Bank Medium Term Running Finance
1. Sole proprietors, associates and all other legal entities
2. For the creation of new businesses and the expansion of existing businesses.
3. Desirable bank account
SME Bank Medium Term Running Finance Documents Required
1. Copy of the CNIC, photograph and bank statement of the sponsor
2. Tax returns and property documents offered as collateral
3. Audited accounts (if the loan exceeds 10 million) / Finances of the last two years preferably
4. Detail and valuation of stock, plant and machinery
5. Personal guarantees
SME Bank Medium Term Running Finance Collateral / Security
1. Mortgages (Urban property)
2. Hypothecation of plants & machinery/stocks
3. Pledge of Government Securities
4. Lien on Deposits/Term Certificates
How to apply For SME Bank Medium Term Running Finance?
To apply for SME Bank Medium Term Running Finance, visit to the nearest SME bank branch for application: https://smebank.org/our-network/
SME Bank Contact Information:
Address: 56-F, Nazim-ud-din Road, F-6/1, Blue Area, P.O Box 1587, Islamabad.
Phone: (+92-51) 9217000
Fax: (+92-51) 9217001
UAN: 111-110-011
E-mail: info@smebank.org