Alfalah Milkiat Finance

AMF is a long term finance facility offered to the customers for the following purposes:

• AMF-1: Acquisition of rented commercial/industrial property by present tenant.
• AMF-2: Construction on owned and possessed commercial/ industrial premises/ plot.
• AMF-3: Purchase of constructed commercial/ industrial property/land.
• AMF-4: Renovation of owned and possessed commercial / industrial property. Please note that all the four facilities shall be provided solely to help SMEs improve and build business infrastructure. AMF shall not be provided for personal asset building or for purchase or renovation / construction for onward sale or rent purpose. The property shall be in the name of the borrower.

With the introduction of AMF, Bank Alfalah has become the only bank providing long term financing facility to SMEs for infrastructure capacity building.

The maximum age of the borrower is 65 years at the time of the maturity of the loan.

AMF-1, 2 and 3 can be availed by the customer within the range of PKR.0.50M to PKR.200.00M, whereas AMF-4 can be availed within the range of PKR.0.50M to PKR.3.50M.

For AMF 1 and 3 minimum 30% equity participation is required whereas no equity is required for AMF 2 and 4. The value of land / property owned by the borrower shall be counted towards his / her equity.

Minimum and maximum tenor for AMF 1, 2 and 3 shall be 2-15 years. Loans under AMF 4 shall be repaid within 2-4 years.

AMF shall be repaid through equal monthly instalments. Bank will obtain post dated checks for the entire facility tenure at the time of disbursement of the loan.

Mark-up is linked with 1 year KIBOR.

Under AMF-1, AMF-2 and AMF-3 a grace period can be allowed for a period not exceeding 3 months, 9 months and 6 months respectively inclusive for the total tenor of facility. Monthly mark-up shall, however, be serviced during the grace period.

The property being financed shall be mortgaged in favor of the bank along with personal guarantee of the proprietor/ partners / directors.

The loan shall be disbursed approximately within one month after completion of documentary requirements by the customer.

Full and final repayment from your own sources shall not attract any penalty. Once a year partial repayment shall be allowed without any penalty. However, in case the outstanding liability is swapped by another bank, 5% of the outstanding principal balance shall be charged.

Yes, if you fulfill the criteria for each facility and the total financing under AMF does not exceed PKR 200.0M, then you can avail more than one type of facility.

AMF-3 has now been allowed for purchase of commercial/industrial land subject to the condition that within six months of the loan disbursement, the customer will also avail AMF-2 for construction on the same land.

Approximately three times for the following:
(i) To hand over the required documents
(ii) To sign the agreements
(iii) For disbursement

The bank will undertake two types of insurance under AMF. Firstly, the property mortgaged under AMF shall be insured and secondly, in case of an individual/sole proprietor, life insurance of the borrower shall be obtained with the Bank as loss payee in both cases. Insurance premium shall be built into the instalment amount. The first year insurance premium shall be received upfront before disbursement of the loan facility.

This facility is being offered at a concessional rate to secure the client’s interest in case of any unfortunate event. It will help ease debt burden on the legal heirs of the client.

All urban commercial/industrial properties which are acceptable to the Bank’s approved legal advisor(s)

It will depend on the Bank’s evaluation and satisfaction regarding the borrower’s prior experience and expertise in the respective line of business.

No, even if you keep an informal record of your business transactions for the last one year, the Bank will arrange the preparation of formal financial statements.

Such an arrangement will not be possible.

No, you can still avail AMF if you fulfill the other eligibility criteria.

With Alfalah Karobar Finance (AKF) you can finance your working capital needs.

AMF is being offered for capacity building of SME’s in their existing lines of business. Renting out the property acquired through AMF shall only be allowed in exceptional cases subject to the condition that the rent is assigned in favour of the Bank