State Bank launches small and medium enterprises digital portal

The State Bank of Pakistan launched SMEConnect on Thursday, a centralised online service for small and medium-sized businesses seeking loans from banks and development finance institutions. Dawn reported that, from Nov 1, financing requests will be accepted only through the portal, where applicants can follow progress and see why an application was declined.

The platform will also give the SBP live information on applications received, processed, approved, disbursed and rejected, both by individual institutions and across the industry. The launch comes as SME lending remains challenging for lenders because these businesses have higher default rates, while banks have other investment options, including government securities and the subsidised Prime Minister’s Housing Scheme. Banks retain the ability to reject applications if they are not satisfied with the risk.