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Prime Minister’s Youth Business Loan Scheme 2015 : Pakistan

Name of the Organization : Prime Minister’s Youth Programme (youth.pmo.gov.pk)
Name of the Scheme : Prime Minister’s Youth Business Loan Scheme
Country : Pakistan

Brief Description :

The name of the scheme will be “Prime Minister’s Youth Business Loans” and it will focus on (but will not be restricted to) unemployed youth, especially educated youth looking for establishing or extending business enterprises.

There is no age limit for Guarantors who are not Government Employees.

Eligibility Criteria :

CNIC holder;
Age 21-45;
Entrepreneurial potential;
Applicant may apply for loans under this scheme only from the designated branch mapped with his/her area of residence/business

Security Requirements :

Guarantor (s) must:
** Have individual or collective Net worth of 1.5 times of required loan amount or Government Employee of BPS-15 or above with minimum 8 years of remaining service at the time of providing the guarantee.
** Blood Relative Can Also Provide A Gaurantee.
** It Is Not Mandatory For The Guarantor To Reside In The Same City Of The Applicant.
** No Net-Worth Required If Guarantor Is Government Employee Of Bps-15 Or Above.
** Applicant Can Also Provide Guarantee Of More Than One Guarantor (Maximum 3) With Aggregate Net-Worth Of 1.5 Times Of The Requested Loan Amount.
Focus on Women:
50% quota of women borrowers.

Debt-Equity Ratio :

90:10 with tenor of up to 8 years (including 1 year grace period)
The borrower’s contribution of equity would be either in the form of cash or immovable property, and will be required only after approval of the loan.
Permissible collaterals (business hypothecation)

Pricing :

8% fixed for borrower but government will pay the difference of the cost at KIBOR+500 bps
Sectoral Distribution of Loans:
For the time being, there will be no limit on the maximum number of loans for any sector. Placement of ceilings can be considered subsequently keeping in view the importance of sectors and applications received for various sectors.

Size of Loan: Up to Rs. 20 lacs

Geographical Distribution:
All over Pakistan
In case of Balochistan, at least one branch of NBP will be designated per division
All non-designated NBP branches will guide the borrowers to the nearest designated branch and will receive application to dispatch to the designated branch if so requested by the borrower.
SBP to ensure that loans are broadly in conformity with provincial populations.

Form processing Fee :

Non-refundable form processing fee would be Rs.100/- at the time of submission of form. However, no fee will be charged for the form itself and a photocopy will also be admissible.

Application Form:
Will require minimum essential information and the format will be as simple as possible to facilitate applicants

Training:
SBP will arrange appropriate training for private banks to implement the scheme. NBP and FWBL will provide appropriate training to their own staff. NBP will also assist in training of FWBL and SMEDA Staff

Executing Agency:
** National Bank of Pakistan
** First Women Bank Limited
** Sindh Bank Limited
** Habib Bank Limited

Sectors and Products:
All sectors. Standardized schemes/projects/ undertakings will be designed by SMEDA, projects designed by private sector service providers or by individuals themselves.

Role of SMEDA:
The 50 or so feasibilities prepared and uploaded by SMEDA would be extensively publicized and their access to public made easier through multiple linkages with other relevant websites;
SMEDA will work closely with Punjab Information Technology Board (PITB) to ensure that the schemes are accessible to those who participated in the PITB survey;

People to Contact:
Focal Person:
Mr. Irtiza Kazmi, EVP
E-mail: irtiza.kazmi@nbp.com.pk

Author : Jency