The thought came to me from that other thread about success stories in Pakistan for returning students… My dad told me that it is really easy in Pakistan to get a small business loan in Pakistan from the various banks, provided you have some people who act as gaurantors for you and sign a bond. Does anyone here have any insight into that? I am sure they offer some sort of incentive to qualified applicants, who are starting a business based on some important technological expertise, which could bring foriegn revenue to the country. Any insights gentlemen (and ladies, if any)…
Re: Small Business loans in Pakistan
Good thread.
Keep me posted. I want to do business in pakistan too. I know few areas where money can be made.
Re: Small Business loans in Pakistan
One thing I know for sure, you need gaurantors which isnt a big problem in Pakistan, relatives etc share more trust there so they'd do it.
Re: Small Business loans in Pakistan
This doesn't apply to your small loans question but does address the ease of starting new businesses by returning students.
A group of HBS grads started a business in Pakistan and got funded by the banks (50/50 ownership). Also, they found that Musharraf administration has made all the processes very transparent -- all transaction were above board i.e. no one asked for a bribe.
Last I heard, they were doing well.
Re: Small Business loans in Pakistan
i am also interested, keep me posted.
Re: Small Business loans in Pakistan
Spock, only yesterday I came across two fliers one from Bank ALFallah the other from ABN AMRO, alluring people towards small business loans; the major particualrs were 'easy terms', '2-15 year tenure option', 'quick process', 'minimum documentation' 'from 200,000-1500,000' and '1500,000-7500,000'
Guarantees and industry based discrimination must be a part of the game I think, but the diff are minimum, everybody is encouraged in any area.
There's a program started by NBP as well, their rates must be better than other banks while their policies may be different in some ways.
Re: Small Business loans in Pakistan
And another bank's flier reads similar terms with a range half a million to 20 million.
Re: Small Business loans in Pakistan
what about smeda