SBP mulls Secure Transaction Law to increase SMEs lending
value of assets are also not availing lending from the banks as their loan collateral is not registered at anywhere. The registration will be made electronically and the bank will feel free to extend lending to the SMEs. In an answer to a question, the SBP SMEs executive director said that SBP has been doing capacity building of banker who are concerned with the SMEs while SMEs owners also need capacity building which does not come under SBP domain.
SAEDA like organization can do good in this regard and SBP is ready to extend its expertise with regard to educate and train the SMEs holders. Currently SMEs are being extended 5 percent of the total credit of the country and SBP SME has set its target to increase the SME lending by 15 percent in the next three years. The SMEs SBP has also conducted surveys of the SMEs and draw out useful conclusions to further streamline the lending to the SMEs. He said recently, in Gujrat, SBP surveyed fan companies in this connection. Such studies will also enable the bank to make products in accordance with SMEs and lend to the SMEs avoiding pitfalls in the lending to the SMEs.