SBP reduces refinancing rates for loans to 2pc for entrepreneurs

Lending rates for small medium enterprises (SMEs) have been revised by the State Bank of Pakistan to 4pc. This move would encourage DFIs and banks to provide long term loans for financing the needs of SMEs. Also, the refinancing rates for loans extended to entrepreneurs by banks have been reduced to 2pc which was 6pc previously for a time period of up to 10 years. Both these rates will come into effect from the start of the new financial year which begins on the 1^st of June 2017.