Objectives of sme bank In Pakistan.The Small Medium Enterprise (SME) Bank, was established in January, 2002 as Public Limited Company under Companies Ordinance 1994 by amalgamating Small Business Finance Corporation (SBFC) and Regional Development Finance Corporation (RDFC). The SBP declared SME Bank Limited as scheduled bank w.e.f April 16, 2005.
10 Objectives of sme bank In Pakistan
CAPITAL:
The initial capital of SME bank was Rs. one billion.
OFFICE & BRANCHES:
Its head office is in Islamabad and there are 12 branches of the NITL in different cities of the country.
OBJECTIVES:
In past, the small medium enterprises have not been able to get finance due to their inability to provide security or collateral. So, the main objective of forming this Bank was to promote small and medium enterprises in the country. It emphasized primarily on those small and medium enterprises, which were exporting goods.
Some other objectives of SME Bank in addition to primary objective are as follows:
- To provide technical and financial assistance to SMEs.
- To take steps in order to promote the growth of local industry.
- To generate employment opportunities in rural and backward areas.
FINANCING SECTORS:
SME bank provides financing to the following on priority basis:
- Fans and Cutlery etc.
- Doctors and Dentists Clinics
- CNG Stations
- Fishery
- Textile
- Gems and Jewellery
- Information Technology
FINANCING CRITERIA:
The individuals, firms or companies, which want to get finance from SME bank, should meet the following conditions:
- They have good reputation.
- They are ready to contribute equity.
- They are not defaulters.
- They are regular taxpayers.
- They have required experience and qualification.
TECHNICAL ASSISTANCE:
SME bank also provides technical assistance and support in areas of management, product innovation and development, quality control, acquiring of new technology, product marketing and development of business proposals
