Eligibility criteria

Small Enterprises (SE)

The SE customers may typically consist of small sized companies, partnerships, and sole proprietorships. Exposures classified under SE are those where (attracting all three will qualify for Small Enterprise or as prescribed by SBP from time to time):

• Aggregate limits (group level or individual counterparty level if not part of a group) not to exceed Rs. 25Mln (the liquid assets (encashment value of Shari’ah Compliant bank deposits, certificates of deposit/investment,) held under perfected lien can be deducted for the purpose of calculation of per party exposure limit) from all Financial Institutions (FIs);
• With total number of employees not exceeding 50 (including contract employees); and
• Sales of customer up to Rs. 150Mln.

Further, an entity has to fulfill both the criteria of number of employees and sales turnover for categorization as small enterprise. However, in cases where an entity fulfills one parameter of SE and its second parameter falls within the range prescribed for medium enterprise (ME) or above the upper limit prescribed for ME, then the subject entity shall be classified as ME or commercial/corporate entity as the case may be.

Exposures placed under SE are managed under the SBP Prudential Regulations for Small Enterprises and applicable Shariah Standards and guidelines.

Medium Enterprise (ME)

IBG also serves the ME customers which may typically consist of medium sized companies, partnerships, and sole proprietorships. Exposures classified under ME are those where (attracting all three will qualify for Medium Enterprise or as prescribed by SBP from time to time):

• Aggregate limits (group level or individual counterparty level if not part of a group) not to exceed Rs.200Mln(the liquid assets (encashment value of Shari’ah Compliant bank deposits, certificates of deposit/investment,) held under perfected lien can be deducted for the purpose of calculation of per party exposure limit) from single Bank / all FIs;
• With total number of employees from 51 to 250 for manufacturing & services, and from 51 to 100 for trading concerns (including contract employees); and
• Sales of customer above Rs. 150 Mln to Rs. 80 Mln.

Further, an entity has to fulfill both the criteria of number of employees and sales turnover for categorization as medium enterprise. However, when an entity’s one parameter is as per ME criteria and its second parameter is as per SE criteria, than subject entity would be categorized as ME. Similarly, when an entity’s one parameter is as per ME and its second parameter is above the upper limit prescribed for ME, then the subject entity shall be categorized as commercial/corporate entity.

Exposures placed under ME are managed under the SBP Prudential Regulations for Medium Enterprises and applicable Shariah Standards and guidelines.