Business Loan In Pakistan Meezan Bank: Establishing and running your own business takes a lot of hard work, determination, and funds — funds that can dry up quickly if you’re not careful with spending. That’s why many new businesses turn to Meezan Bank’s business loan program.
Business Loan In Pakistan Meezan Bank
Which offers everything from small loans to commercial real estate loans to business startups, helping companies get off the ground and thrive. To learn more about this excellent program, please visit our website or call our customer service representatives today!
What is a Business Loan?
A business loan is a financial instrument that enables you to borrow funds, at a fixed or variable interest rate, against an established business. Business loans come in different shapes and sizes. Meezan’s business loan program lets you apply for financing of up to Rs100 million or more.
You can apply for either a short-term loan (less than one year) or long-term financing (more than one year). The amount of your financing depends on how much money you need and how long you will use it over.
For example, if you want to buy machinery with a five-year useful life, then your loan would be for five years. However, if you plan to buy machinery with a two-year useful life, then your loan should be for two years.
How Much Can You Borrow?
As of 2018, Meezan’s business loan program allows you to borrow up to 40 million Pakistani rupees (approximately $331,000 USD). Borrowing less than 15 million rupees (approximately $121,000 USD) will mean higher fees for loan amounts under that amount.
Meezan has recently begun offering new loans under 5 million Pakistani rupees ($40,000 USD). For most entrepreneurs in Pakistan and India, that’s an ideal option as it offers quick funding without much red tape. However, because of more stringent requirements for smaller loans, you might need a connection at Meezan to get approved for such a small amount.
What Are The Requirements?
Getting approved for a business loan from Meezan is fairly straightforward. You’ll fill out an application form and send it in with documents that prove your business’ financial health and viability. Approval time varies depending on how busy your nearest branch is, but if you can avoid rush hours, approvals usually take less than a week. Once approved, you’ll have 30 days to deposit funds into your account before they revert back to Meezan.
Don’t worry; that’s not a penalty: it’s designed to make sure new businesses don’t rely on loans for longer than they need them. The only caveat is that you need two employees and $100,000 in savings to qualify—so plan ahead and start saving as soon as possible!
What Are Your Benefits?
Meezan’s new business loan program offers: Unsecured loans from PKR 50,000 to PKR 1 million. Flexible repayment schedules to meet your needs, starting at 2 years. Minimum documents required for a speedy application process. Access to unsecured working capital for your new venture or existing business with no collateral requirements.
Interest rates up to 16%* per annum for designated micro businesses and 18%* per annum for all other loan types with a grace period of 6 months on all working capital disbursements and end-to-end electronic access of your loan information including statement of account. If you need funding for your new business or have already established an existing business and are looking for flexible financing options, we invite you to apply now!
How Long Does It Take To Get Approved?
Meezan Bank has a pre-approval process in place, meaning that you can get an idea of how much money you could borrow before even applying. The decision to give you a business loan will still be subject to Meezan’s credit criteria. Once your application is reviewed, it should take less than 10 working days for Meezan to either approve or decline your loan application.
If approved, disbursement can also happen within 10 working days of approval; however, if there are any issues with your documents or information provided by you, it may take longer for funds to become available. Who can apply?: You must have been trading for at least one year and have a minimum turnover of Rs 5 million per annum (for manufacturing businesses) or Rs 3 million per annum (for service providers).
You must also have sound financial records and tax returns as well as other supporting documentation to prove your income, assets and liabilities. If you meet these requirements, then your chances of getting approved are good. After all, Meezan lends around 90% of its annual budgeted loans every year!
That’s over 200 new borrowers joining their ranks every month! In addition to individuals and small companies who trade on their own account, those trading through partnership firms or LLPs (limited liability partnerships) will also qualify for loans from Meezan Bank.
How Do I Make Payments?
You can pay your Meezan loan using a variety of payment methods. You can make payments at a branch, over phone or via internet banking. For telephone and internet banking payments, you will need to have registered on Meezan’s website first, and you will need to provide your bank account details when making payments at branches. Interest rates: The rate of interest on our loans is 11%.
Your interest rate will be adjusted quarterly in accordance with changes in Prime Lending Rate (PLR) as set by Meezan based on current PLR of banks operating in Pakistan. A security deposit of 5% may also be required for loans up to Rs10 million, which may reduce your monthly installment amount. Fees: A fee of 2% is applicable on all Meezan business loans.
Repayment schedule: Loans are typically repaid within 12 months although shorter repayment periods are available for borrowers who want to save money on interest charges. However, please note that short-term loans do not offer any savings in total costs compared to longer term loans.
So it might not always be worth opting for a shorter term. A commitment fee of 0.50% per month applies if repayments are made late or if an instalment is missed without prior notice being given to us beforehand.
Am I in Good Hands With Meezan Bank?
If you’re an established entrepreneur in Pakistan, chances are you’ve come across Meezan Bank. You might have even gotten a business loan from them and had an overwhelmingly positive experience. But, if you haven’t worked with them yet, you may be wondering what they can do for your small business that other banks can’t.
Here are some of their core offerings The answer to those questions is simple: Yes! Meezan Bank is one of Pakistan’s leading banks, offering services to over 3 million customers through hundreds of branches around the country. They were founded in 2001 by two banking visionaries: Shaukat Tareen and Arif Habib—and since then, they’ve been making waves as one of Pakistan’s fastest-growing financial institutions.
Over time, their branch network has expanded significantly—but so has their list of offerings! Today, they offer everything from corporate banking solutions to consumer loans to mutual funds—all while maintaining a stellar reputation among both investors and entrepreneurs alike. Their main goal is to provide personalized service at competitive rates—and it shows!
Meezan Bank Prime Minister Youth Loan Scheme
As a part of its government-sanctioned scheme to fund small and medium enterprises (SMEs), Meezan Bank has announced special rates for SMEs and Pakistanis between 18 to 45 years of age. Meezan is offering a lending rate of 8.75% on loans up to Rs15 million.
While borrowers can borrow at an interest rate as low as 8.50% in case they repay their loans within three years. This year, it also introduced lower down payments (as low as 5%) with an option to pay in equal installments over six months. The loan amount is limited to one year’s revenue or around Rs0.5 million, whichever is higher.
Meezan Bank Business Loan Scheme 2022
The scheme has been announced with a hope to encourage business activities in Pakistan and to help them grow. If you’re an entrepreneur looking for business loan, then Meezan bank can be your ultimate destination.
The main feature of Meezan bank business loan is that they provide loans without any guarantor. This facility is not offered by other banks of Pakistan. You are eligible to get micro loans only if you don’t have any credit history in IDR system.
Meezan Bank Business Loan Apply Online
If you’re looking to get a business loan, you might want to consider applying for one from Meezan Bank. Meezan Bank is one of Pakistan’s leading private banks. It provides banking services to customers through over 310 branches and 805 ATMs throughout Pakistan.
At present, its branch network covers major cities and towns in all four provinces of Pakistan including Islamabad/Rawalpindi, Lahore, Karachi, Multan, Faisalabad, Gujranwala, Sialkot and Quetta along with their associated districts. As on September 30th 2016, Meezan bank had an asset base of PKR: 1003 billion while its net profits after tax stood at PKR: 230 million.
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Conclusion
Just like in your personal life, setting and sticking to a budget is key to financial success. Business owners should review their expenses on a regular basis, keeping an eye out for unnecessary spending or areas where they can save.
At Meezan Bank, we’re always willing to help with business loans tailored to match your unique business needs. Our team of experts will work with you from start to finish, providing you with all of the resources necessary for you to succeed and reach your goals in 2022! If you have any questions about our services, please don’t hesitate to contact us today!
