Temporary Economic Refinance Facility (TERF)

AKBL, under the directives of SBP, is lending its support for sustainable economic growth especially in the backdrop of challenges being faced by the industry in post pandemic scenario, AKBL, under SBP refinance facility is providing Temporary Economic Refinance Facility (TERF).

Scope and eligibility criteria

The facility will provide concessionary refinance for setting up of new industrial units and/ or expansion of their existing projects/ businesses along with Balancing, Modernization and Replacement(BMR).
As per TERF’s eligibility criteria, financing for BMR/expansion will only be available for purchase of new imported and locally manufactured plant & machinery against foreign LC and inland LC, respectively. Second-hand machinery, land or civil works are not covered under the facilities.

Maximum limit

Rs. 5 Billion per project


10 years including grace period up to 2 years

End User Rate

Maximum 7% p.a

Repayment of finance

Quarterly/ half-yearly basis

Validity of the facility

LCs/ILCs established from the date of announcement of the scheme till 31st March, 2021 will be eligible

Security / Risk Coverage

For eligible borrowers security arrangement agreed with the bank

Terms & Conditions

Approval of loan will be subject to bank’s internal credit criteria
This scheme is being launched in accordance to following SBP Circulars:

  • SBP IH&SMEFD Circular No. 01 & 02 of 2020
  • SBP IH&SMEFD Circular Letter No. 09 of 2020