Annexure II of IH&SMEFD Circular No.

7 of 2019
SP-I
UNDERTAKING
To be obtained from Bank/DFI under
SMALL ENTERPRISES (SE) FINANCING AND CREDIT GUARANTEE SCHEME FOR SPECIAL PERSONS
(to be submitted by the bank/ DFI and stamped in accordance with the law in force in each
province)

Place: _______________
Date : _______________

The Chief Manager,

SBP BSC (Bank),
____________ (City)

Dear Sir/ Madam,

1. This is in reference to IH&SMEFD Letter No.________________________ dated ___________.

Under Section 17 (2) (d) read with section 22 of State Bank of Pakistan Act, 1956, refinance of Rs
__________ (Rupees______________________ ) has been made available to us under State Bank
of Pakistan’s Small Enterprises (SE) Financing and Credit Guarantee Scheme for Special Persons
for _____ years. Against this refinance facility, we ________concerned bank/DFI______________
have delivered to you a Demand Promissory Note made by us in your favor.

2. We do hereby agree to the following terms and conditions:

(a) We shall pay/ repay the principal or mark-up amount of refinance and any other charges/
penalty thereon to you in accordance with the agreed repayment dates. In no case, our liability
to pay/ repay you the principal amount of refinance or mark up or any other charges or penalty
thereon shall be dependent upon the recovery from the borrowers nor shall our liability be
affected by any default on the part of the borrowers.

(b) As security for the said refinance, we shall deliver to you, demand promissory note made by
us in your favor, as are acceptable to you and drawn on and payable in Pakistan, arising out
of bonafide finance provided by us to our borrowers, eligible for financing as per criteria spelt
out in Small Enterprises (SE) Financing and Credit Guarantee Scheme For Special persons.

(c) Maximum rate of mark-up to be charged by us from the borrowers shall not exceed ___% p.a.

(d) Service charges shall be payable by us to you on quarterly basis on 31st March, 30th June, 30th
September and 31st December each year or on maturity of the financing made to the
borrower. Where the above-scheduled date falls on a public/ weekly holiday, we shall make
payment of the due amount of service charges on next working day after such due date. You
are hereby authorized to deduct the amount of service charges, without seeking any debit
authority from us, by charging the same to our current account with you in case we fail to
make payment on the due date, as required under the Scheme. You shall also be entitled to
charge fine on us, at a rate specified in the Scheme from time to time, on our failure to make
payment whether on account of inadequate balance in our account or otherwise.

(e) We agree that on default of repayment by us on any promissory note tendered under this
Undertaking, you have our authority to debit without further reference to us, all of our
accounts now held or held hereafter or adjust any amounts worth which may, howsoever,
 Annexure II of IH&SMEFD Circular No. 7 of 2019
SP-I
become due from you or come into your possession or control to the extent of the amount
due from us under any such promissory note or in terms of the clauses referred herein before
or otherwise under this agreement.

(f) Maximum amount of refinance that you shall provide to us in the case of each borrower
financed by us would be equal to the amount actually disbursed by us under the Scheme.

(g) The Demand Promissory Note (notice of dishonor of which Promissory Note is hereby waived
in terms of Section 98 of Negotiable Instrument Act, 1881) furnished by us with this
Undertaking shall, notwithstanding the existence of a credit balance at any time or any partial
payments or fluctuations of accounts or withdrawal of any part of this security, be a continuing
security for repayment of all sums due or found due under this Undertaking, along‐with
service charges due thereon to you, and all costs, charges or expenses, which you may be
entitled under the law to recover from us.

(h) We undertake that we shall not extend finance to any party/ borrower unless we are satisfied
that all parties/ borrowers liable there-under are financially sound and credit worthy.

(i) We shall neither sanction nor permit any of our customers to use the finances for any purpose
other than those prescribed under the Scheme. Any finances provided by us under this
Scheme shall be subject to the terms of our internal policy. Further, we shall obtain a
declaration from our borrowers to the effect that they shall not utilize the finances or any part
thereof except for the purpose spelt out in the Scheme.

(j) No financial assistance shall be given by us to any of our Directors or to any company, firm or
group or association or project in which any of our Director is interested either directly or
indirectly except in financial assistance against tangible security which will be provided with
the approval of the majority of our Directors, excluding the Director concerned.

(k) We shall ascertain the genuineness of signatures as well as authority of all persons to whom
the finances will be provided under the Scheme and that those persons are not classified as
doubtful/ loss.

(l) We undertake to take, at our expense, all steps as may be necessary to realize the money from
our customers under the Scheme.

(m) We shall hold upon trust securities/ security documents presently held by us or which may be
obtained by us from our customers to whom finance is made available under this Scheme, as
security for due repayment of finance with return/ profit thereon. Further, on your demand,
we undertake to assign to you all such securities and secured documents.

(n) In addition to the preceding clauses, we agree that as and when you demand, we shall create
valid legal charge on any or all of our assets as may be demanded by you.

(o) We expressly understand that you are entitled to cancel or recall or advance the date of
repayment of this finance at any time and for any reasons without any prior notice to us and
that you are not obliged to provide any finance to us any time and for any reason against this
Scheme. By executing a promissory note in your favor or by providing finance to any customer
on the faith of this Undertaking, we shall acquire no right or claim to demand finance from
you under this Scheme. We also expressly agree that you have the sole right to vary, amend,
 Annexure II of IH&SMEFD Circular No. 7 of 2019
SP-I
alter or add to the terms and conditions of the Scheme without any reference to us and we
agree to invariably comply with the same.

(p) We agree that notwithstanding anything contained elsewhere in this Undertaking, the
amount of this finance along‐with service charges will become due and payable, if we commit
breach of any of the clauses of this Undertaking.

(q) No indulgence or delay in exercising any of your rights hereunder shall be deemed a waiver of
any right and no waiver of any of your right hereunder shall be construed as a waiver of any
other rights you may have.

Yours faithfully,

______________________________ ______________________________

Authorized Signature with seal for Authorized Signature with seal for
Bank/DFI Bank/DFI

Witnesses:

1. ________________ 2. ___________________

________________ ___________________
 Annexure II of IH&SMEFD Circular No. 7 of 2019
SP-II

DEMAND PROMISSORY NOTE *

to be submitted by Bank/DFI

Place: ______________
Date: ______________
Rs. : ______________

On demand, we _ (name of the Bank/DFI) _ promise to pay to the State Bank of Pakistan, Banking
Services Corporation, (City) or order the sum of Rs. ____________________ (Rupees
______________________________ only) for value received plus service charges @ _____ % p.a. plus
fines and charges determined by State Bank of Pakistan for re‐financing under Small Enterprises (SE)
Financing and Credit Guarantee Scheme for Special Persons.

(Authorized signature of the Bank/ DFI)

(Name & Seal)

* To be stamped in accordance with the law in force in each Province.

Witnesses:

1. ________________
________________

2. ________________
________________
 Annexure II of IH&SMEFD Circular No. 7 of 2019
SP-III

REFINANCE APPLICATION FORM

to be submitted by the Bank/DFI under
SMALL ENTERPRISES (SE) FINANCING AND CREDIT GUARANTEE SCHEME FOR SPECIAL PERSONS

The Chief Manager, Date: __________

SBP BSC (Bank),
______________ (City)

Dear Sir/Madam,
REQUEST FOR RELEASE OF REFINANCE
FACILITIES UNDER THE CAPTIONED SCHEME

1. With reference to the letter No. ________________ dated ____________issued by the IH&SME
Finance Department of State Bank of Pakistan conveying the availability of funds under the Scheme;
we submit herewith application for refinance facility amounting to Rs. (sum of current applications),
(Rupees___________________________________ only) against the finance disbursed by us under
Small Enterprises (SE) Financing and Credit Guarantee Scheme for Special Persons to our borrower as
per particulars given below:

Name of borrower/
business
Business address of the
borrower
District
Nature of business activity
Particulars of finance as Amount
per Financing Agreement Date of agreement
executed by bank/ DFI Mark-up rate
with the borrower
Date of disbursement
Period for which financing
extended
Due date of repayment of
finance
Purpose of financing

2. We certify that the details of the contract(s) finalized by the borrower/ sponsor (s) mentioned above
and the payments made by us to them against the aforesaid contract(s) have been placed in our record
and shall be invariably provided to the inspection team(s) of SBP during the inspection of our bank/
DFI.

3. We have already submitted/ submit herewith the securities documents required under the
captioned Scheme for the purpose of availing refinance, to the extent of the amount mentioned in
IH&SME Finance Department’s letter referred to above, to your office vide our letter No.
_____________ dated ______________. We hereby request you to provide refinance of Rs.
________________ (Rupees________________________ only) and credit our Current Account with
you.

4. We hereby certify that:‐

 Annexure II of IH&SMEFD Circular No. 7 of 2019
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i) the terms & conditions as stipulated in the captioned Scheme have been complied with;
ii) all the requirements of the Scheme including those at (iii) below have been fully met;
iii) the eligibility of borrower and the purpose of financing has been properly determined by us
in accordance with the prescribed criteria/ conditions set out in the Scheme in force on the
date of the Financing Agreement/ Undertaking.

5. We understand that the IH&SME Finance Department, State Bank of Pakistan has right to appoint
independent consultants to verify cases of refinance and agree to reimburse the cost so incurred in
case the report of consultants indicates any irregularities on our part. We also agree to immediately
pay back any amount of refinance disbursed to us by the State Bank on the basis of this application if
the State Bank subsequently concludes that such refinance was wrongfully claimed and also pay fine
on such finance @ paisa 60 per day per Rs 1,000 or part thereof, or such other rate as may be
announced by the State Bank from time to time, for the period for which such finance is availed by us.

6. We also undertake that in case irregularities are found to have been committed by the borrower
due to negligence of our officials/ staff to ensure compliance of the same or that such irregularities
have been made by the borrower with the involvement of our officials/ staff, besides taking
appropriate action against our staff under our staff regulations or code of conduct, we shall indemnify
and agree to indemnify and save harmless the State Bank against any claims, actions, costs, losses and
expenses that it may incur due to litigation or otherwise on account of recovery of amount of refinance
and the fine thereof for availing of refinance to which we/ they were not entitled otherwise.

7. We hereby also authorize SBP BSC to recover the full or remaining outstanding amount of
refinance along‐with mark up and fines, if any, from any monies held in our account or on our behalf
in case the amount(s) falling due is not repaid by us on the due date agreed to by us.

Yours faithfully,

___________________ ___________________
(Authorized Signature with (Authorized Signature with
name and designation) name and designation)
 Annexure II of IH&SMEFD Circular No. 7 of 2019
SP-IV

BORROWER’S UNDERTAKING
SMALL ENTERPRISES (SE) FINANCING AND CREDIT GUARANTEE SCHEME FOR SPECIAL PERSONS
(to be stamped as an agreement in accordance with the law in force in each province)

Place: _____________
Date: ______________

The Manager,
____________________ Bank Limited/DFI,
____________________ Branch,
____________________ (CITY)

Dear Sir/ Madam,

1. I/ we do hereby certify and confirm that a finance of Rs. __________, (Rupees

__________________________only) has been allowed to me/us by you under Small Enterprises
(SE) Financing and Credit Guarantee Scheme for Special Persons of the State Bank of Pakistan on
service charges basis @ _______ % p.a.

2. I/ we further confirm and undertake that the aforesaid finance will be/ has been obtained by
me/ us as per the provisions of the Scheme under reference. Further, I/ We confirm that
aforesaid finance or any part thereof shall not be utilized except for the purpose spelt out in the
Scheme.

3. I/ we do certify that the finance is being obtained by me/ us against bonafide transaction and I/
we submit the requisite documents along‐with this application for your consideration of
extension of finance facility to us from your bank/ DFI under Refinance Scheme for Working
Capital Financing of Small Enterprises and Low-End Medium Enterprises.

4. I/ we hereby confirm and agree that in the event of my/our failure to make payment on due date
you have our Irrevocable Authority without reference to us, to recover from me/ us and debit my/
our Account No._______________________ maintained with you along‐with fine or penalty
applicable to me/ us, if any, as prescribed under the Scheme. I/ we authorize the bank/ DFI to
reimburse itself with the fine amount even if we have made a representation to SBP against
imposition of fine under the Scheme.

5. I/ we agree that notwithstanding anything contained elsewhere in this undertaking, the amount
of this finance along‐with Service Charge due thereon to you will become due and payable
immediately, if I/ we commit breach of any of the terms and conditions hereof.

Yours faithfully,

_________________________
Authorized Signature of the Borrower

______________________________
Signature verified by the authorized
Officials of branch of bank/DFI
Witnesses:

1. __________________ 2._____________________