The SME Bank was formed and incorporated as a public limited company under the Companies Ordinance 1984. The Government of Pakistan is the major Shareholder of the bank. As part of financial sector restructuring program of Government of Pakistan, Regional Development Finance Corporation (RDFC) and small Business Finance Corporation (SBFC) were amalgamated into SME Bank Ltd effective January 1, 2002.

SME bank Ltd was established to exclusively cater to the needs of the SME sector. it was created to address the needs of this niche market with specialized financial products and services that will help stimulate SME development and pro poor growth in the country.

Corporate Objectives

The objectives of the SME Bank are as follow:

• To support, develop and promote Small & Medium Enterprises (SMEs) by providing them the necessary technical and financial assistance.


• To concentrate on value addition and export oriented SMEs


• To enable SMEs to play a vital role in stimulating GDP growth, create job opportunities and reduce poverty.

Products Features

• Available for working capital requirements e.g. purchase of stocks, raw material etc.


• Avail finance facility from Rs.0.5 Million to Rs.100 Million


• Tenor is one year. (renewable upon expiry) .


• Principal financing amount is to be adjusted on expiry of the period fixed for the facility.


• Mark-up rate: 1 year KIBOR + 8.5 % p.a


• Mark-up to be paid on yearly basis


• Fast track processing for business existing over two years.


• Mortgage of urban residential/commercial/industrial properties acceptable to the bank (Max. financing will be 70% of Forced Sale Value of the security & collateral}.


• Hypothecation of Plant & Machinery/stocks (with 25% margin)


• Personal Guarantees of sponsor/partner/directors.Third party Guarantee(optional).