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Islamic Refinance Facility For Modernization Of Smes (IRFMS)Islamic Refinance Facility For Modernization Of Smes (IRFMS)

Islamic Refinance Facility For Modernization Of Smes (IRFMS)

Islamic Refinance Facility for Modernization of SMEs (IRFMS) is State Bank of Pakistan’s initiative to provide financing to SME customers on concessionary rates, under which customers can purchase new imported / local plant & machinery for Balancing, Modernization & Replacement (BMR) of existing units and setting up of new units. Financing shall also be available for import / local purchase of new generators.

Eligibility Criteria:

  • All SME customers as defined in SBP’s Prudential Regulations for SMEs are eligible for financial assistance to purchase new imported/local plant & machinery for BMR of existing units and to set up new SME units. 
  • Financing for import / local purchase of new generators up to a maximum capacity of 500 kVA is also eligible under the scheme for the allowed sectors.

Financing under the scheme shall be available:

  • Only against LCs in case of financing against imported plant and machinery.
  • To the extent of the C&F value of the imported new plant and machinery and/ or ex-factory/showroom price of the new locally manufactured machinery.

Features:

Type of Financing Long term financing for establishment and modernization of new and existing SME units. 
Pricing/ Return Max. end-user rate for all eligible sectors: 6%. 
Maximum Financing Limit Max. limit of financing shall be as per definition of SME as prescribed by SBP from time to time.
Tenure Max. 10 years with up to 6 months’ grace period

SBP Scheme Link

https://www.sbp.org.pk/smefd/circulars/2019/C3-Annex-A.pdf

For more details, visit your nearest Bank Alfalah Islamic branch or call us at 021 111225111.

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