A financial product offers loans ranging from Rs. 25,000 to Rs. 150,000 for individual entrepreneurs needing working capital or asset purchase. Secured by National Savings Certificates, gold jewelry, or KBL Term Deposit Certificates, the loan features different security margins:
Letter of Pledge, Lien and Authority for Securities: Rs.100
DP Note: Rs.50
Turn around Time
4-5 working days
Security Margins
Liquid Security
20% Margin
i.e. 80% Loan to Face Value Ratio
Gold
30% Margin
i.e. 70% Loan to Value Ratio
Subtopic
Acceptable Securities
KBL Term Deposit Certificates
National Savings Certificates
Gold Jewllery
Gold Valuation Charges
Rs. 500 per case (to be borne by borrower)
Eligibility Criteria
• Household annual income less than Rs. 300,000 or as revised by SBP from time to time
• Age between 22 - 64 Years
• Residing in the area for last 2 Years
• Business experience of minimum of 2 Years
• Doing business at same location for last 1 year
• Holding valid CNIC
• Satisfactory cash flow
• Credit scoring to assess credit worthiness only, no negative impact on credit decision
• Not defaulter of KBL & other institutions (subject to eCIB /data check for loans exceeding Rs. 30,000)
• Other pre / post disbursement verifications (as applicable)
• Borrower should be able to execute charge documents
Competitive Edge
Zero Early Payment Fee
Partial Payments Allowed
Daily Markup on Late Payment; No additional charges
Flexible tenures
Tenure
3 - 12 months
Repayment Options
EMI or Bullet
Purpose
Productive loan for individual entrepreneurs who wish to use it for working capital needs or asset purchase
Debt Service Ratio
70% of disposable income
Pricing (APR)
Gold
27%
Liquid Securities
15%
Min and Max Loan Value
Minimum Loan Rs.25, 000/-
Maximum Loan Rs. 150,000/-
Processing Cost
Rs. 500 for Loan upto Rs. 50,000/-
Rs. 1,000 for Loan greater than PKR 50,000/- but less than or equal to Rs. 100,000/-
Rs. 1,500 for Loan greater than PKR 100,000/-
