Banks told to simplify loans for small businesses
ISLAMABAD: The government has directed commercial banks to simplify the loan process for small and medium-sized enterprises (SMEs) and to enhance their access to credit.
According to the details, the government has issued instructions to facilitate the acquisition of bank loans for small businesses nationwide and to improve access to financing.
During a meeting chaired by Finance Minister Muhammad Aurangzeb, the provision of loans to SMEs was reviewed, and measures to integrate more businesses into the formal banking system were discussed.
The Finance Minister instructed commercial banks, microfinance banks, and other financial institutions to increase lending, with a specific emphasis on prioritizing export-oriented businesses.
The meeting also reviewed the newly introduced ‘SME Connect’ portal, which allows small businesses to apply for loans directly and engage with banks.
Welcoming the initial response to the portal, Muhammad Aurangzeb noted that thousands of applicants had expressed interest within just a few days of its launch.
He directed that the portal be further refined and the application process simplified.
He also stressed the importance of effectively utilizing the credit limits allocated for SMEs and strengthening coordination between banks and the Small and Medium Enterprises Development Authority (SMEDA).
Furthermore, the Finance Minister directed the relevant ministries to remove regulatory hurdles hindering SME financing.
The government’s objective is to expand access to credit for small businesses, encourage investment, boost exports, and foster overall business activity.
