KARACHI: The State Bank of Pakistan (SBP) Friday launched a portal for reporting of loan applications of Small Enterprises (SEs) and Medium Enterprises (MEs) to monitor the turnaround time (TAT). In December, 2017, State Bank prescribed the turnaround time (TAT) of 15 working days and 25 working days for Small Enterprises (SE) and Medium Enterprises (ME) loans, respectively for the credit approval process under the Prudential Regulations of SME Financing.
In continuation of these instructions and in order to monitor the TAT of SE and ME loan applications; the SBP has launched a reporting portal, ie, "SE/ME Loan Application for TAT Monitoring". New fund-based SE and ME loan applications will only be reported on the portal.
Accordingly, Banks and DFIs are advised by SBP to submit status of SE and ME loan applications on reporting portal on monthly basis with effect from reporting period November, 2020 and onwards.
Additionally, TAT reporting for March, 2020 to October, 2020 months will also be submitted on this portal. The SBP mentioned that monthly data will be submitted within ten (10) working days after the end of each reporting month. However, monthly data of March, 2020 to October, 2020 will be submitted latest by December 31, 2020.
Monthly SE and ME applications data currently being submitted by email in MS Excel CSV format will continue till reporting month of December, 2020. From January, 2021, submission of monthly data by email will be discontinued.
The SBP has asked banks and DFIs to ensure meticulous compliance of fresh instructions and any deviation or non-compliance shall attract punitive action under the relevant provisions of BCO, 1962. These instructions will be applicable from December 01, 2020.
It may be mentioned here that with a view to further facilitate promotion of SME financing by providing enabling regulatory environment, SBP is continually making efforts and banks and DFIs were advised to adopt standardized and simplified loan application forms to be circulated by PBA for SE and ME borrowers. Accordingly, the condition of obtaining Borrower's Basic Fact Sheet (BBFS) from prospective SME borrowers was also abolished. However, requirement of obtaining e-CIB Report will remain unchanged.
Copyright Business Recorder, 2020