Islamic Refinance Scheme for Payment of Wages and Salaries
Bank Alfalah Islamic continues to support businesses under the State Bank of Pakistan’s refinance scheme for payments of wages and salaries. Under new guidelines, the facility is now extended from June 30, 2020 to September 30, 2020!
Businesses who have already availed the facility can now secure an additional 3 months of wages for their employees. Businesses who meet the criteria but could not avail this facility, can apply for 6 months of salaries and wages, including reimbursement for the months of April, May, and June 2020.
Offer available to:
- Existing payroll clients who also maintain a business (financing) relationship with Bank Alfalah
- Existing payroll clients who do not maintain a business (financing) relationship with Bank Alfalah
- Clients who maintain a business (financing) relationship but are not availing payroll services with Bank Alfalah
- Existing and potential clients who do not maintain either payroll or business (financing) relationship with Bank Alfalah
Features of Refinance Facility:
| Category | Wage Bill for 3 months | Financing Limit | Maximum Financing Limit |
|---|---|---|---|
| A | Less than or equal to Rs. 500 million | 100% of actual 3 months wage bill | Rs. 500 M |
| B | More than Rs. 500 million | Rs. 500 million or 75% of 3 months wage bill, whichever is higher |
Rs. 1000 M |
- End-user profit rate: Up to 5%
- Tenor of Financing: Starts from January 2021 after disbursement period of 3 months followed by maximum grace period of 6 months
- Repayment of Financing: Repayment will be made in 8 quarterly monthly installments
- Validity of this facility: 30th September, 2020
- Risk Coverage:
- Government of Pakistan will bear 60% first loss on disbursed portfolios (principle portion only) for eligible SME customers with turnover of upto PKR 800 million
- GOP will bear 40% first loss on disbursed portfolios (principle portion only) for eligible non-SME small corporate customers.
For further information, you may visit https://www.bankalfalah.com/islamic/important-information-covid-19/ or send your queries at smeibg.helpdesk@bankalfalah.com
