JS / Business / SME / JS Payroll Financing

JS Payroll Financing

JS Payroll Financing, based on State Bank’s Refinance Scheme for Payment of Wages & Salaries, is a loan facility for SMEs and small corporates to run payroll cycles smoothly at a markup of only 5% (Markup rate of 3% for Tax filers).This financing facility has been especially designed so that the wages and salaries of workers / employees are covered for six month (April to September).

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Category Wage Bill for 3 Months Loan Limit Maximum Loan Amount
(1) (2) (3) (4)
A Less than or equal to Rs. 500 million 100% of column 2 Rs. 500 Million
B More than Rs. 500 million Rs. 500 million or 75% of column 2, whichever is higher Rs. 1,000 Million
  • Repayment of loan to start from April 2021 after disbursement period of three months followed by a grace period of 6 months.
  • Repayment of the loan (Principal amount) to be made in eight quarterly payments.
  • Markup to be paid on a quarterly basis
  • Option to avail financing for up to six payroll circles (April to September).
  • Free of charge salary transfer through JS Connect to all Payroll accounts across JS Bank
  • Disbursement of salary & wages directly in the employees accounts for the payroll financed by JS Bank.

Risk Sharing Facility by State Bank of Pakistan

The government of Pakistan has approved budgetary allocation for the ‘Risk Sharing Facility for State Bank of Pakistan (SBP) Refinance Scheme to Support Employment and Prevent Layoff of Workers’.

  1. GOP will bear 60% first loss on the disbursed portfolio (principal portion only) for eligible SME borrowers with a turnover of up to Rs 800 million.
  2. GOP will bear a 40% first loss on the disbursed portfolio (principal portion only) for eligible non – SME small corporates borrowers.

Eligibility Criteria:

  • Under this facility, the Bank will provide short term local currency finance for the payroll of the business
  • Payroll processed by JS Bank before availing the facility
  • NTN will be required
  • Requests for the facility may be made by the borrower till September 30th, 2020.
  • The borrowers availing this Scheme will undertake not to lay off their workers/employees during the first six months (April to September).

Required Document Checklist:

  • Proof of Business Operations
  • The  wages  and  salaries bill  for  three  months  will  be  determined  as  per  the  latest available financial statements, preferably audited, at the time of sanctioning of limit
  • Audited Accounts and Management Accounts, as per Corporate / Commercial / SME Prudential Regulation, where applicable
  • In case, reasonably current financial statements (i.e. audited financial statements as of  June  2019  or later) are not available at the time of financing, A certificate from the Head of  Human  Resource or  Chief  Financial  Officer of the business concern for the last 3-months average wages and salaries bill.
  • Personal guarantee of the owner/directors. Sponsor directors’ personal guarantee in the case of limited companies.
  • NTN will be required
  • The borrowers availing this Scheme will undertake not to lay off their workers/employees during the six months (April to September) from the date of the first disbursement and except in case of any disciplinary action
  • Any other requirement of the Bank as per Corporate/ Commercial/ SME Prudential Regulations.


  • During the duration of facility disbursement until approval from SBP for the refinance facility, a mark-up rate of 3-Month KIBOR+2% (floating) per annum would be applicable
  • In case of failure to meet repayment on the amount of the installment as per the original repayment schedule (within 15 days), the Overdue mark-up rate will be applicable as per SOC