SBP urged to direct banks to help SMEs

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SBP and FIA to take joint action

KARACHI: The Union of Small and Medium Enterprises (UNISAME) has urged the State Bank of Pakistan (SBP) to direct commercial banks to financially accommodate the sector in view of the tough times the SME sector is facing under lockdown and global recession due to coronavirus, says a Press release.
President UNISAME Zulfikar Thaver said the SBP has come up with friendly supportive schemes and announced specially subsidized rates but the commercial banks are not feeling comfortable and not financing the SME units without collateral.
Thaver said it is pertinent to note that the funds are provided by SBP but the risk is of the commercial banks who are not inclined to take the risk and insist on collateral.
UNISAME experts have urged the banks to consider the acceptance of guarantees, goods in transit, inventory and indemnified contracts from reputable buyers as collaterals.
They said it is high time the banks look at other collaterals instead of immovable properties to finance and facilitate the sector on modern lines.
UNISAME is receiving many complaints from SMEs who are declined finance from banks under the supportive SBP schemes due to low comfort level of commercial banks and their mindset of collaterals.