The State Bank of Pakistan (SBP) has taken a significant step to support small and medium businesses as well as industries by raising the loan limit available from banks.
According to a circular issued by the SBP, small businesses and industries can now borrow up to PKR 100 million from a single bank. Similarly, medium-sized businesses and industries can secure loans of up to PKR 500 million from a single bank. The central bank has increased the loan limit for small and medium enterprises (SMEs) by 300% and 150%, respectively.
The SBP has also issued amendments to the SME loan regulations. Experts believe that the reduction in interest rates and the easy availability of affordable loans from banks will boost private sector borrowing and accelerate the pace of economic growth in the country.
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