In Pakistan, various financial institutions and banks such as the State Bank of Pakistan, Meezan Bank, and the National Bank of Pakistan, offer Business Loans For Women to support female business owners.
These schemes feature attractive terms such as low mark-up rates, extended loan tenures, and significant risk coverage, making it easier for women to start or expand their businesses.
This article contains the top five ways to get business loans for women in Pakistan and elsewhere around the globe as Pakistani women.
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Business Loans For Women | How To Get A Women’s Business Loan
Table Of Contents
State Bank Of Pakistan Women Loan Scheme
Key Features
- Interest Rate: Financing is offered at a mark-up rate of up to 5% per annum.
- Maximum Loan Amount: Up to Rs. 5 million.
- Loan Tenure: Up to 5 years, including a grace period of up to 6 months.
- Risk Coverage: Up to 60% risk coverage is available for Participating Financial Institutions (PFIs).
Scheme Details
- Refinancing: Provided by the State Bank of Pakistan (SBP) at 0% interest to PFIs for onward lending to women entrepreneurs at a maximum mark-up rate of 5% per annum.
- Eligibility for Risk Coverage: Loans under this scheme are eligible for 60% risk coverage through SBP’s Credit Guarantee Scheme for Small and Rural Enterprises.
| Aspect | Details |
|---|---|
| Scope & Eligibility | – Available to women entrepreneurs nationwide. – Loan period: Up to 5 years (including a grace period of up to 6 months). – Maximum financing limit: Rs. 5 million. – Purpose: Setting up new businesses or expanding existing ones. – Preferably provided under the personal guarantee of the borrower. |
| Participating Financial Institutions | All commercial banks and Development Finance Institutions (DFIs) are eligible to participate. |
| Rate of Mark-up | – End-user rate: Up to 5% per annum. – SBP refinance rate to PFIs: 0%. |
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Meezan Bank Business Loan For Women
Key Features
- Scheme: Refinance & Credit Guarantee Scheme for Women
- Purpose: To enhance access to finance for female entrepreneurs as part of the Government of Pakistan and State Bank of Pakistan’s initiatives.
- Provider: Meezan Bank
Details of the Scheme
| Feature | Description |
|---|---|
| Eligibility Criteria | The maximum financing limit is PKR 5,000,000 (Rs. 5 million). |
| Financing Amount | The loan term can extend up to 5 years, including a grace period of up to 6 months. |
| Tenure | Loan term can extend up to 5 years, including a grace period of up to 6 months. |
| Pricing | The end-user rate will be up to 5% p.a. |
The National Bank Of Pakistan SME Loan For Women
| Feature | Description |
|---|---|
| Refinancing | State Bank of Pakistan provides refinancing at 0% to participating financial institutions for onward lending. |
| Eligibility | Women entrepreneurs in underserved areas across the country. |
| Maximum Financing Amount | Up to PKR 1.5 million. |
| Loan Tenure and Grace Period | Loan duration can extend up to 5 years, with a grace period of up to 6 months. |
| Mark-Up Rate | End-user rate is capped at 5% per annum. |
| Purpose | Loans can be used for establishing new businesses or expanding existing ones. |
| Risk Coverage | 60% of the outstanding principal amount is covered under the scheme. |
| Collateral Requirements | Loans should ideally be secured with the personal guarantee of the borrower, though collateral may be used as per SBP guidelines. |
Recommended Reading: Small Business Loan In Pakistan | Business Loan In Pakistan
The Akhuwat Foundation
Akhuwat also has an incubation program that provides a monthly stipend of PKR 50,000 to help female entrepreneurs while they start their businesses.
The foundation offers legal services, startup support, and mentoring to Pakistani women who are trying to become entrepreneurs.
Akhuwats goal is not only to make it easier for women in Pakistan but also to create more jobs and opportunities.
Akhuwat created a women-only bank that is run by women, with the goal of eventually becoming self-sufficient so they can offer other products and services to the public.
The Kashf Foundation
Pakistan has a thriving microfinance industry, with more than 400 local and international microfinance institutions and a market of 4.2 million borrowers.
The Kashf Foundation, a non-profit organization based in Karachi, Pakistan is working hard to level the playing field by providing loans for women entrepreneurs at no interest with flexible repayment terms.
They have provided more than 1.5 million loans totaling over $100 million since 2005 – each loan averaging about $500.
Some of the most popular industries where these loans are being used are healthcare, education, and beauty services.
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Business Loans In Pakistan | FAQs
Top 3 platforms to get business loans in Pakistan?
Akhuwat, Kashaf Foundation, and Women Entrepreneurs Association of Pakistan are the Top 3 platforms to get business loans in Pakistan.
How much business loan amount women can get from Akhuwat Foundation?
Akhuwat Foundation gives PKR 50,000 business loans for women as a monthly stipend, which is actually interest-free.
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