dVision To support and advocate the growth of locally and internationally competitive industries in Punjab to achieve the following:

• Technological Up gradation.
• Employment Generation.
• Sustained growth in profitability.
• Sustained growth in Govt. Revenues and Exports.
• Sustained growth in foreign and local investment in the industrial and services sector in the Punjab.

Policy The public Sector should contain its role to creating an enabling environment for the private sector to grow and prosper. The resulting economic activity will achieve the objective of employment generation, increased incomes and poverty alleviation thereby creating a better quality options in the life of the citizens of the Punjab in particular and of Pakistan in general by:

• Encouraging private sector to invest in the Punjab.
• Economic growth generation to create employment.
• Up-gradation of technology to enhance profitability.
• Improving and creating new infrastructure necessary for economic growth.
• Facilitating entrepreneurs through one-window facilitations.

LOANING PROGRAMS:

I) Financing of SME’s for Small Scale Manufacturing Industries/Services Providers.

1. Loan Limits: Minimum: 0.100 million.

Maximum: 0.500 million for service providers.
2.000 million for Small Industries.

2. Debt Equity Ratio: 60:40

3. Mark Up: 12% Per Annum (Simple).

4. Grace Period: For Service Providers: One month from the date of
disbursement last loan installment or three months from the date of disbursement of 1st loan installment whichever is earlier.

For Manufacturing: Six months from the date of disbursement of last loan installment or one year from the date of disbursement of 1st loan installment which ever is earlier.

5. Repayment: Quarterly installments in 5 and 2 years including the
grace period for manufacturing and services respectively.

6. Security: Single security in the form of Registered Mortgage
of immovable fixed assets equal to the loan liability (including simple markup) will be ensured. In case the immoveable fixed assets of the project (Land & Building) are not sufficient to secure the total loan liabilities then additional immoveable assets located within the same Revenue District will be mortgaged to cover the total loan liabilities. The owner of additional security shall be a partner in the project.

7. Age Limit: Minimum 21 years on the date of submission of
application.

8. Ineligibility: No loans will be approved for: -

i) Projects mentioned in the negative / restricted list notified by the Govt. of the Punjab from time to time.
ii) The defaulters / delinquents of PSIC, Banks, or any other DFI.
iii) Projects to be owned by the Govt. / PSIC Employees.

9. Selection Criteria: 1st Priority: For BMR projects established in
PSIC’s Small Industrial Estates.
2nd Priority: For new projects to be established in PSIC’s Small Industrial Estates.
3rd Priority: For projects to be established out side PSIC’s Small Industrial Estates.

10. Loan Approval Procedure: i) Processing / service charges @ 0.25% (Non-
Refundable) of the requested amount of loan will be charged at the time of application.

ii) Time Schedule for processing of an
application from the receipt to disbursement of 1st loan installment shall not exceed 60 days with the following processing sequence:

o Receipt of applications at Distt. Dev. Offices.
o Submission of applications along with project feasibility reports to Regional Director with recommendations.
o Holding of loan sanctioning committee meeting to be chaired by the respective Regional Director.
o Issuance of sanction / rejection letter.
o Execution of loan agreement.
o Completion of mortgage and other legal documents.
o Loan Disbursement.

11. Cancellation of Loan: If a loan applicant fails to complete required
formalities for mortgaging / legal documentation within one month from the date of sanction the sanction will automatically stand withdrawn.

12. Late Payment Charges: In case of late payment, penalty @
Rs.1000/- per month would be charged for loan of Rs. 0.500 million and Rs. 2000/- for loan over Rs. 0.500 million.

II) Customized Lending Program for Promotion and Development of Hand Looms and Crafts Based Textiles.

1. Loan Limit Per Unit: Upto: Rs. 50,000/-

2. Mark Up: Nil.

3. Processing Fee &
Administrative Charges: 6% of the Loan Amount.

4. Security: One Personal Surety.

5. Repayment: In 22 equal monthly installments after grace
period of two months.

6. Late Repayment Penalty: @ Rs. 200/- per month.

7. Cancellation Clause: As per terms of the sanction letter.

III) Customized Lending Program for Furniture Cluster in and Around Chiniot.

1. Loan Limit Per Unit: Upto: Rs. 100,000/-

2. Mark Up: Nil.

3. Processing Fee &
Administrative Charges: 6% of the Loan Amount.

4. Security: One Personal Surety and hypothecation of
fixed assets equivalent to loan liability.

5. Repayment: In 22 equal monthly installments after grace
period of two months.

6. Late Repayment Penalty: @ Rs. 500/- per month.

7. Cancellation Clause: As per terms of the sanction letter.

IV) Financing of SMEs (Cottage / Micro Industries / Artisans / Craftsmen-Women and Household Income Generating Enterprises.

1. Loan Limit: Maximum: Rs.50,000/-

2. Mark Up: Simple Mark Up @ 11% p.a

3. Grace Period: Three months.

4. Security: i. One Surety from Govt. Employee of
BS-8 & above for loan upto Rs.25,000/-.
ii. One Surety from Govt. Employee of
BS-16 and above for loan above Rs.25,000/-.

5. Repayment Period: Three years including three months
Grace period.

6. Late Repayment Penalty: @ Rs. 100/- per month.

7. Cancellation Clause: As per terms of the sanction letter.

V) 4 Stroke CNG Rickshaws Loaning Scheme – Chief Minister’s Green Fund program.

1. Average Unit Cost: Rs. 1,47,000/-

2. Debt Equity Ratio: 75:25

3. Mark Up: 5.5% (flat)

4. Subsidy: Rs. 20,000/-

5. Repayment Term: Three Years, in 36 equal monthly
installments.

6. Other Expenses: All expenses for registration, route permit,
insurance, fitness etc. to be borne by the borrower.

7. Late Penalty: @ Rs. 200/- per month on late payments.

8. Recovery: -Registration of Auto Rickshaw in PSIC’s
favour.

-Loan Agreement to include repayment of
loan amount and any penalties.

-Loan risk management through insurance
coverage.

-Guarantee arrangements / Personal
Guarantees:

i. Guarantee from Govt./Semi Govt.
employees of BS-8 & above.

ii. Business person paying tax for last
three years.

VI) Credit Assistance for Conversion of Diesel Buses into CNG

1. Average Unit Cost: Rs. 0.50 mn to Rs. 0.60 mn

2. Debt: Rs. 0.50 mn to 0.60 mn

3. Mark Up: 5.5% (flat) Per Annum

4. Repayment Term: Three (3) years in 36 equal monthly
Installments (post dated cheques at the time of loan disbursement shall be obtained.

5. Other Expenses: All expenses for registration, route
permit, insurance, fitness etc. to be borne by the borrower.

8. Security: Registered mortgage of urban
immovable fixed assets equivalent to loan liabilities including Markup and any penalties etc.

OR

Hypothecation of the bus in favour of PSIC which shall be insured by the owner for an amount equivalent to Loan liabilities including Markup and any penalties etc.

VII) Credit Assistance for Installation of Roti Plants/Mechanical Tandoors

Loan Parameters: Loan Amount: Equivalent to full cost of machinery.
Including sartup charges.

Markup: Nil
Repayment: 58 equal monthly installments with two months grace period.

Contact: Head Office, Punjab Small Industries Corporation.
5th Floor, LDA Plaza Egerton Road, Lahore, Pakistan.
Ph: 042-99201432, Fax: 042-99201430.