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Subsidy and Guarantees for Rice Husking Mills


Mark up Subsidy and Guarantee Facility for the Rice Husking Mills in Sindh

In order to modernize and upgrade rice husking mills of Sindh, the Sindh Enterprise Development Fund (SEDF), Government of Sindh has offered interest subsidy of 4.75% and credit risk sharing facility of up-to 30% against the long term loans to be extended to rice husking mills by banks under the SBP Refinancing Scheme. The broad features of the facility are given below:

Mark up subsidy

Mark up rate for the Facility shall remain the same viz. 7.5% for financing up-to 5 years as applicable under SBP’s Refinance Facility; however, the end-user rate will be 2.75% p.a only, i.e. the difference of 7.75% (SBP’s share) will be borne by SEDF.

Guarantee Cover

Banks will be offered credit guarantee cover of 30% against their outstanding loans under the Facility. As mentioned, the cover will be provided on the strength of financial support extended by SEDF.

Tenor of loans

Facility shall be available against loans granted up-to the period of five years.

Loan Limit

Maximum loan size for a single borrower shall be Rs 10 million (Rupees Ten million only).

The banks which have already obtained refinance limits under the Refinance Facility for Modernization of SMEs may now apply for the Guarantee and subsidy limits under this Scheme

S.no Title Downloads
1 Rice husking mills Download
2 Brochure for Rice husking mills Download