PESHAWAR - Small and Medium Enterprise Development Authority (Smeda) proposed the establishment of revolving fund for provision of interest-free loans to the SMEs of Peshawar.

The proposal was floated during a meeting with Peshawar Chamber of Small Traders and Industry, Peshawar here at Smeda, Peshawar Office the other day. The meeting discussed proposals for establishment of revolving fund, Research & Development (R&D) Cell and holding of business excellence award to acknowledge the efforts of the outstanding businessmen.

During the meeting, Provincial Chief, Smeda, Khyber Pakhtunkhwa, Javed Iqbal Khattak gave a detailed briefing over the agenda topic and explained it to the participants.

He spoke in detail on the concept of the revolving fund, which will be utilised for providing interest-free loans to the members of the chamber.For the generation of the fund, the chamber will deduct 3-4pc from the entire portfolio to meet the monthly administrative expenditure of the trade body. Under the methodology proposed for the establishment of the fund every member will donate a minimum amount of Rs.10 per day and will be deposited in a separate account maintained by the chamber in this purpose.

The disbursement of the fund will be carried out through a committee to be notified by the chamber. Eligibility for the fund is that the applicant will be below age of 60 years and will be recommended by the concerned trade association. It will be distributed on the basis of the first come first serve basis.

The applicant for loan will be required two personal guarantors and the disbursement will start after three months of the establishment of the fund.

The establishment of such revolving fund will help provide opportunity to SMEs for getting easy access to loans, increase confidence of the traders on chamber and quick processing of loan applications.

Speaking on the occasion, President, Peshawar Small Traders and Industries, Ehtisham Haleem appreciated the concept of revolving fund and announced the formation of the committee for the purpose on the spot to transform the concept of the establishment of such fund to reality.

He lauded the role of Smeda for its cooperation and requested Smeda KP to develop R&D proposal for the chamber.

The meeting also discussed in detail the event of the business excellence award including the scrutiny process, rules and regulations, application form, sponsorship and venue of the function while Rashid Aman (Manager Smeda KP) was nominated as focal person for the entire activity with the chamber.