NBP SME Financing
Business loans, trade finance, and government-backed schemes for small and medium enterprises, run through NBP's Inclusive Development Group.
- KIBOR + Spread
- Up to PKR 800M
- Trade Finance Included
NBP runs its SME lending through a dedicated Inclusive Development Group (IDG). The product range goes well beyond a single "business loan": general working capital facilities, seasonal financing for specific crops, supply-chain finance, full trade finance, and access to several government-backed schemes. This page pulls together what's confirmed directly from NBP's official SME Financing page.
Enterprise Size Definitions
NBP's eligibility depends first on which size bracket your business falls into, since this determines which financing products and government schemes actually apply to you.
| Category | Criteria |
|---|---|
| Micro Enterprise | Up to PKR 30 million |
| Small Enterprise (above Micro) | PKR 30M – 150 million |
| Medium Enterprise | PKR 150M – 800 million |
| Start-up (SE or ME) | Up to 5 years old |
Enterprise classification confirmed directly from NBP's official SME Financing product details page.
General Financing Products
For working capital, NBP offers short-term Running Finance and Cash Finance against pledge, priced at KIBOR plus a spread, with quarterly mark-up calculated on a daily-product basis and a tenor of up to one year (or on demand, on a revolving basis where applicable). For fixed assets like machinery, equipment, or business expansion, Term Finance is available with instalment-based repayment over up to 5 years. Both are open to sole proprietors, self-employed individuals, partnerships, and limited companies, secured against mortgage of property or liquid securities.
Seasonal, Supply Chain & Trade Finance
NBP offers seasonal financing, up to PKR 500 million, specifically for rice, wheat, and cotton procurement and processing. It's tailored to the working-capital cycle of rice husking mills, flour mills, and cotton ginning or trading businesses. On the supply chain side, Dealer Finance, Invoice Finance, Purchase Order Finance, and Inventory Finance are all available to help suppliers and dealers of larger corporate "anchor" companies manage cash flow, generally priced at KIBOR plus spread with tenors up to 120 days.
For exporters and importers, NBP's trade finance suite covers Letters of Credit, Letters of Guarantee, Packing Finance, and several bill-discounting and retirement facilities against imports. Pricing follows the bank's Schedule of Charges for commission-based products, and KIBOR plus spread for funded facilities, with tenors typically up to 180 days.
Government-Backed Schemes
NBP participates in the Prime Minister's Youth Business & Agriculture Loan Scheme (PMYB&ALS), open to Pakistani nationals aged 21–45 (18+ for IT/e-commerce), structured in three tiers: up to PKR 0.5 million at 0% mark-up, PKR 0.5–1.5 million at 5%, and PKR 1.5–7.5 million at 7%, over a tenure of up to 8 years including a one-year grace period. NBP can only extend Tier-2 and Tier-3 facilities under this scheme.
Exporters also have access to Export Finance Schemes (EFS Part-I and Part-II, plus a facility for indirect exporters) and the Long Term Financing Facility (LTFF), both priced at a concessionary rate roughly 3% below the SBP Policy Rate, aimed at export-oriented businesses and projects with imported or locally manufactured plant and machinery.
NBP also offers Karsaz, a financing product built around SBP's Credit Guarantee Scheme (CGS) for small and rural enterprises — something most competitor SME pages don't surface clearly. Under Karsaz, SBP covers 60% of the risk on the loan for startups, women borrowers, and businesses in underserved areas (a defined list of regions), with 0% SBP refinance cost passed through and an end-user markup capped at up to 5% per annum — financing up to Rs. 25 million over a tenure of up to 5 years, with up to a 6-month grace period. Because SBP absorbs most of the risk, this is one of the few SME products where clean cash flow and a good credit record can substitute for heavy collateral.
Documents You'll Need
Beyond the standard loan application form and valid CNIC of the proprietor, partners, or directors, NBP asks for bank statements and financial statements per SBP's Prudential Regulations. Existing businesses need to show proof of business with relevant experience; a fresh setup needs a feasibility report instead. Applicants generally need to be between 22 and 65 years old at loan maturity, with case-by-case relaxation possible.
Good For
- Small and medium businesses seeking working capital or fixed asset financing
- Startups, women entrepreneurs, and businesses in underserved areas eligible for reduced-collateral Karsaz financing
- Exporters looking for concessionary Export Finance or Long Term Financing Facility rates
- Businesses applying under the Prime Minister's Youth Business & Agriculture Loan Scheme
Talk to an NBP SME Relationship Manager
Rates, spreads, and scheme availability change — confirm current terms directly before applying.
Frequently Asked Questions
What counts as a Small Enterprise for NBP SME financing?
NBP classifies a Micro Enterprise as up to PKR 30 million and an Above-Micro Small Enterprise as PKR 30–150 million, with Medium Enterprise covering PKR 150–800 million — confirmed from NBP's official SME Financing page.
How is the mark-up rate calculated on NBP SME loans?
Most NBP SME facilities are priced at KIBOR plus a spread that NBP sets per applicant, rather than a single flat rate — confirm the current spread directly with an NBP SME Relationship Manager.
What is NBP Karsaz and how is it different from a regular SME loan?
Karsaz is built on SBP's Credit Guarantee Scheme, where SBP covers 60% of the loan's risk for startups, women borrowers, and businesses in underserved areas. That government risk-sharing lets NBP offer up to Rs. 25 million at a capped markup of up to 5% p.a. with 0% SBP refinance cost, and rely less on heavy collateral than a standard SME facility.
Similar Banks
More on NBP
Bank Overview
History, ownership, leadership, and key facts.
Agriculture Finance
Kisan Dost & Kisan Taqat schemes.
Account Opening
Deposit accounts and how to open one.
Personal Loan Calculator
NBP Advance Salary rates and a free calculator.
Careers
Where NBP actually posts jobs.
Helpline & Complaints
Contact numbers and escalation path.
For independent verification, see State Bank of Pakistan, Pakistan Stock Exchange, National Bank of Pakistan.