Business Desk 
Nov 25, 2024
The State Bank of Pakistan (SBP) must offer long-term, collateral-free loans at 3% interest to women entrepreneurs in Pakistan, urged All Pakistan Bedsheet and Upholstery Manufacturers Association (APBUMA) central chairman Imran Mehmood Sheikh.
The demand was made during an awareness session organised by the SBP to celebrate World Women’s Entrepreneurship Day (WED).
What are Collateral-free loans?
Collateral-free loans are those that do not require the borrower to pledge assets as security. Instead, lenders consider other factors like the borrower's credit history, income, and financial indicators when deciding whether to approve the loan.
“While SBP already offers women entrepreneur loans at subsidised rates that is insufficient and it should revisit existing policies, particularly about the women entrepreneurs belonging to the Small and Medium Entrepreneurs (SMEs) sector,” noted the APBUMA chairman.
Sheikh also expressed concerns that high markup rates have become a significant threat to the existence of SMEs, which often have limited financial resources.
He outlined the crucial role of SMEs, noting that APBUMA is one of the largest representative bodies of SMEs, with 600 members, including 350 from Faisalabad.
However, he also praised the SBP event, highlighting its importance in encouraging women to become active contributors to the national economy, instead of relying on others for support.
