State Bank Introduced loan scheme for businesses to pay salaries
State Bank of Pakistan Introducing loan scheme to pay salaries to employees during corona emergency
The State Bank of Pakistan State Bank Introduced loan scheme for businesses to pay salaries. For industries and business community to pay salaries to its employees during the coronavirus emergency.
The scheme which State Bank Introduced as loan for businesses to pay salaries named “Refinance Scheme for Payment of Wages and Salaries to the Workers and Employees of Business Concerns“. This scheme released temporarily.
The purpose of the scheme is to encourage businesses not to fire employees in this emergency. The scheme will be available to all businesses of Pakistan through banks.
Prime Minister @ImranKhanPTI also announced an incentive on the behalf of State bank of Pakistan. SBP will give easy loans to those business owners who will not fire their employees during this Pandemic.#PMImranKhan #Corona pic.twitter.com/DhuZHDgiOG
— Prime Minister's Office, Pakistan (@PakPMO) March 30, 2020
The scheme will also include for businesses having permanent, temporary, contract and outsourced employees. Companies that do not layoff their employees between April and June 2020. They will be able to benefit from this scheme for payment of salaries and wages.
STATE BANK OF PAKISTAN LOAN SCHEME TERMS & CONDITIONS
The markup on this scheme will be 5%. The interest rate for those who are in active taxpayers list will be 4%. Businesses with a 3 month wage and salary expense of up to Rs. 200 million can get full amount of their expense in financing. Those businesses with a 3 month wage and salary expense of greater than Rs. 500 million can get up to 50% of their salary expense. Businesses in the middle category can get up to 75 percent of their 3 months’ salary and wage expense.
The banks will not charge any loan processing fee, credit limit fee or prepayment penalties for loans
under this scheme. A grace period of six months allowed to the borrowers while the repayment of the principal amount will be made in two years. Banks will provide weekly reporting to SBP on the take up of the scheme and in particular the reasons for any denials of financing requests under this scheme.
HOW TO APPLY STATE BANK OF PAKISTAN CORONA VIRUS EMERGENCY LOAN
More information can be taken from the below given links http://www.sbp.org.pk/smefd/circulars/2020/C6.htm and http://www.sbp.org.pk/smefd/circulars/2020/C7.htm. Businesses can alos apply at the given email directly to state bank email@example.com or you may call at calling 021-111727273. A complete list of all measures taken by state bank of Pakistan can be taken at http://www.sbp.org.pk/corona.asp.
According to officials of state bank of Pakistan, the financing facility will be able to mitigate the current financial situations of business community. It will also help to reduce the chances of unemployment form the country due to corona virus pandemic emergency.