Commercial banks not comfortable in financing small enterprises and therefore it is necessary that microfinance banks accommodate small enterprises: Zulfikar Thaver

Karachi, November 24, 2015 (PPI-OT): The Union of Small and Medium Enterprises (UNISAME) urged Shamrock Conferences chief executive officer Menin Rodrigues to advocate the cause of the majority micro sector at the 9th assembly of the stakeholders vigorously. President UNISAME Zulfikar Thaver said the commercial banks are not comfortable in financing the small enterprises and therefore it is necessary that the microfinance banks (MF) accommodate the small enterprises.

To enable the MF banks to finance the small entrepreneurs it is important that their financing limit is enhanced from half million to one million and accordingly all caps and restrictions are removed. Secondly he advised the concept of MSME banks instead of SME banks to include the micro, small and medium sectors by the MSME banks portfolio.

He appreciated the role of the MF banks and their contribution to the economy. Thaver urged the MF banks to reduce their mark up to make it affordable and also urged the government to enhance the scope of the Microfinance Fund to enable the MF banks avail the fund and serve the majority sector
He also suggested the MF banks to open more branches in both urban and rural areas for broader reach and reduction in cost due to productivity.

For more information, contact:
Union of Small and Medium Enterprises (UNISAME)
75/1 3rd Commercial Street,
Phase IV, D.H.A., Karachi, Pakistan
Tel: +92-21-35884225-6
Fax: +92-21-35380642
Cell: +92-300-8245307, +92-321-8245307