Financing Scheme for Payment of Wages and Salaries

In a bid to lessen the impact of COVID-19 and to facilitate customers, Askari Bank is offering a financing scheme to enable companies to pay uninterrupted wages and salaries to their employees. This scheme is expected to ease cash flow constraints of employers and to support continued employment, hence combating layoffs.

Scope & Eligibility Criteria
The Scheme aims to finance wages and salaries of permanent, contractual, daily wagers as well as outsourced employees of existing as well as new borrowers of the bank for the months from April 2020 to June 2020.

Maximum Financing Limit
Maximum financing limit of a borrower under this scheme will be determined in the following manner:

Category Wage Bill for Three Months Loan Limit Maximum Loan Limit
(1) (2) (3) (4)
A Less than or equal to Rs.500 million 100% of column 2 Rs.500 million
B More than Rs.500 million Rs. 500 million or 75% of column 2,
whichever is higher
Rs.1,000 million

Tenor of Financing
The repayment of financing under the Scheme will start from January 2021. The repayment will be made in 8 equal quarterly instalments.

End User Rate

  • Maximum 3% per annum rate for eligible borrowers on Active Tax Payer List.
  • Maximum 5% per annum rate for all the rest.

Validity of the Facility: 30th June 2020.

Condition for Loan

The borrowers availing this Scheme will undertake not to lay off their workers/employees during first three months.

How will it work

Option 1

For companies who maintain their payroll with Askari Bank, we will transfer the money to individual employee account through internal funds transfer as per instruction by the employer

Option 2

For companies who do not maintain payroll with Askari Bank, we can fast track and ensure quick and hassle-free account opening process for employees or we will transfer the funds to employee account is other banks via Inter Bank Funds Transfer

Loan Facility for SME and Small Corporate

Askari Bank is also offering a separate loan facility to help SME and Small Corporates under the ambit of SBP’s Risk Sharing Facility to support employment and prevent layoff of workers.

Under the Scheme, Government of Pakistan is providing Guarantee to partially secure the loan amount.

For more details on the Facility, please contact your nearest Askari Bank Branch or Call Centre.

Terms & Conditions

This scheme is being launched in accordance to SBP IH&SMEFD Circular # 06 dated April 10, 2020, Circular # 07 dated April 24, 2020 and Circular # 09 dated May 06, 2020. Approval of loan will be subject to bank’s internal credit criteria.

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