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SME Financing

Introduction

Small and Medium Sized Enterprises (SMEs) drive economic growth by stimulating innovation, acting as a competitive spur to existing businesses to increase their productivity, and making a disproportionately large contribution to job creation. BankIslami Pakistan Ltd is dedicated to support SME business with all the products and services available through its branch banking network. The products and services are offered to SME clients strictly under Shariah modes.

Eligibility

Small Enterprises

Start-up Annual Sales Turnover Financing Allowed
Start-up A small enterprise up to 5 years old will be considered as Start-up SE Upto Rs.150 Mn Upto Rs. 100 Mn

* Including contractual employees. However, in cases where an entity fulfills one parameter of SE, and its second parameter falls within the range prescribed for a medium enterprise (ME) or above the upper limit prescribed for an ME, then the subject entity shall be classified as an ME or commercial/corporate entity, as the case may be.
* The age of individuals/sole proprietors should be up to 60 years. A deviation in the same up to 65 years can be allowed by the approving authority of BankIslami.

Medium Enterprises

Medium Enterprise (ME) is a business entity, ideally not a public limited company which meets the following parameters:

Start-up Annual Sales Turnover Financing Allowed (Maximum per party)
A medium enterprise up to 5 years old will be
considered as Start-up ME		 Above Rs.150M and up to Rs.800M for all types of ME Rs.500M (including leased assets) exposure from single or all banks.

*In cases where an entity fulfills one parameter of ME and its second parameter falls above the upper limit prescribed for ME, the subject entity shall be classified as commercial/corporate entity as the case may be.

Empowering the Engine of Pakistan’s Economy

At BankIslami, we recognize that Small and Medium Enterprises (SMEs) are the true engines of innovation and economic growth. Our mission is to empower your business journey with a comprehensive suite of Riba-free financial services designed to meet the dynamic needs of modern entrepreneurs.

At BankIslami, we are dedicated to fueling your business journey with a comprehensive suite of Shariah-compliant financial solutions. Whether you are a budding start-up or an established enterprise, our products are designed to meet your needs with integrity and transparency.

Are You Eligible?

Based on State Bank of Pakistan guidelines, SME businesses fall into the following categories:

Small Enterprises (SE)

  • Annual sales turnover up to PKR 150 Million
  • Financing limit up to PKR 100 Million

Medium Enterprises (ME)

  • Annual sales turnover above PKR 150 Million and up to PKR 800 Million
  • Financing limit up to PKR 500 Million

Start Ups

  • Businesses up to 5 years old may be considered Start Ups under SE or ME categories

Note

  • Businesses exceeding these limits may be reclassified as Medium Enterprise or Corporate
  • Sole proprietor age guideline is up to 60 years, extendable to 65 years subject to approval
Why Choose BankIslami for SME Banking?
  • Shariah compliant and Riba free financing structures
  • Solutions for daily operations, expansion, and trade
  • Access to government backed and subsidized SME schemes
  • Nationwide branch network and digital banking support
Account Services

All essential banking services to support your daily business needs.

Key Features:

  • Current accounts with zero account maintenance charges
  • Multiple currency options including PKR, USD, EURO, GBP, and JPY
  • Low cost fund transfers
  • Foreign exchange services
  • Nationwide network of over 340 branches
  • Unlimited online intercity and within city transactions
  • Free cash deposits and withdrawals at all branches

Learn More: Difference between Islamic and conventional liability side banking kindly clickDownload Single Loan Application Form

Working Capital Financing

All essential banking services to support your daily business needs.

Key Features:

  • Current accounts with zero account maintenance charges
  • Multiple currency options including PKR, USD, EURO, GBP, and JPY
  • Low cost fund transfers
  • Foreign exchange services
  • Nationwide network of over 340 branches
  • Unlimited online intercity and within city transactions
  • Free cash deposits and withdrawals at all branches

Learn More: Difference between Islamic and conventional liability side banking kindly click

Download Single Loan Application Form

Term Financing

Following are the Medium and Long term financing products:

Ijarah

  • BankIslami leases an asset to your business for an agreed period against fixed rentals, with an option to purchase the asset at the end of the term.

Learn More: Difference between Islamic and conventional long term financing kindly click

Diminishing Musharakah

  • Joint ownership between BankIslami and the client, where the client gradually purchases the bank’s share while paying rent during the tenure. This facility can also be used to pay off conventional financing.

Learn More: Difference between Islamic and conventional long term financing kindly click

Trade Financing

Opening of Letters of Credit (Sight / Usance)

  • We offer Shariah compliant trade solutions for opening Letters of Credit (Sight and Usance) and registration of import contracts for eligible commodities to support local and international trade.

Collection of Export Documents

  • Export activities are supported through LC advising and handling of export documents on a collection basis with correspondent banks worldwide.

Letters of Guarantee

  • We provide Letters of Guarantee including bid bonds, performance guarantees, and advance payment guarantees to meet transaction-related requirements of SME clients.
Structured Financing Solutions

Tailored to Your Business Cycle

  • When standard products are not enough, our structured solutions are designed around your specific cash flows and operational needs.
BankIslami Karobar Finance

Tailored to Your Business Cycle

  • A long term solution to meet permanent working capital needs by leveraging your existing assets.

Key Highlights:

  • Financing up to PKR 50 Million for Small Enterprises
  • Financing up to PKR 100 Million for Medium Enterprises
  • Cash backed approvals up to PKR 200 Million
  • Tenure up to 5 years with flexible repayment options
BankIslami Hotel Finance

Tailored to Your Business Cycle

  • Designed to support renovation, expansion, and development of hotels and resorts, especially in tourist regions.

Key Highlights:

  • Financing for renovation and expansion projects
  • Flexible repayment options for seasonal and year round operations
  • Suitable for budget and mid range hotels
Digital Supply Chain Financing

Tailored to Your Business Cycle

  • Instant liquidity for suppliers associated with leading corporate entities through a digital platform.

Key Highlights:

  • Financing from PKR 500,000 to PKR 50 Million
  • Short term financing cycles up to 180 days
  • Disbursements against accepted invoices
Prime Minister’s Youth Business and Agriculture Scheme

Government Backed. Youth Focused. Shariah Compliant.

BankIslami is a participating bank under this subsidized financing scheme designed to support young entrepreneurs and farmers.

Key Benefits:

  • Subsidized profit rates starting from 5 percent
  • Support for start ups and existing businesses
  • Financing for working capital, machinery, vehicles, and civil works
  • Simple application process with minimal processing fee

Eligibility Snapshot:

  • Pakistani citizens aged 21 to 45 years
  • IT and E Commerce businesses eligible from age 18
  • SMEs, start ups, and agriculture sector participants

Apply via PM Youth Portal: https://pmyp.gov.pk/bankform/newapplicantform

Pricing

Flexible pricing (floating / fixed with revision monthly/Quarterly/Half-yearly/yearly).

MODE OF PAYMENT & PAYMENT FREQUENCY

Long term: Monthly / Quarterly / Half-yearly

Short term: As agreed between client and the bank

Late Payment Charity

Charity @ 20% per annum will be received after due date which will be credited to Charity account.

How to Apply

Required Documents:

Proprietorship concern:

  • CNIC copy of proprietor.
  • Request for credit facility on Letterhead.
  • Basic borrower fact sheet duly signed & stamped on each page by proprietor.
  • Sole Proprietorship Declaration.
  • Personal net worth statement of Proprietor.
  • Last three years financial statements signed by Proprietor.
  • Company Profile.
  • Latest stock report.
  • Latest ageing of receivables.
  • Last six-month bank statement with other banks.

Partnership concern:

  • CNIC copy of all partners.
  • Request for credit facility on Letter head.
  • Basic borrower fact sheet duly signed & stamped on each page by authorized signatories.
  • Personal net worth Statement of all partners.
  • Last three years Financial Statements signed by authorized signatories.
  • Company profile.
  • Latest stock report.
  • Latest ageing of receivables.
  • Last six-month bank statement with other banks.

Private Limited Company:

  • CNIC copy of all directors.
  • Request for credit facility on Letter head.
  • Basic borrower fact sheet duly signed & stamped on each page by authorized signatories.
  • Board resolution.
  • Form A.
  • Latest form 29,
  • Memorandum of association (MOA) & Article of association (AOA).
  • Certificate of Incorporation (COI).
  • Personal net worth statement of all directors.
  • Last three years financial statements signed by authorized signatories.
  • Company profile.
  • Latest stock report.
  • Latest aging of receivables.
  • Last six-month bank statement with other banks.
FAQs

How I/we can obtain credit facility application form?

  • Application form & BBFS can be obtained from our designated branch (list attached)

Which type of Security bank Prefer against financing?

    • Hypothecation on Current Assets (Depend type of Credit facility)
    • Pledge of Goods (Depend type of Credit facility)
    • Property Mortgage (Preferable of Urban areas)
    • Personal Guarantees of Proprietor/Partners/Directors/Mortgagor(s).
    • Counter Guarantee (Only for Bank Guarantee facility)

Is there any Islamic Banking product available as an alternative to conventional banking product of Running Finance (RF) / Overdraft?

  • Exactly not but working capital needs of the company can be catered by Karobar finance product and Istisna (specifically for manufacturers) products may be used as an alternative to meet the above requirement.

Which type of Credit facility can I avail from BankIslami?

  • We provide following Shariah Compliant Products & Services

    Short term:

    • To meet Working capital requirement of the firm.
    • Trade related business (Import / Export)

    Long term:

    • Acquisition of Plant & Machinery
    • Purchase of Commercial or Industrial Property

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