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Prime Minister's Youth Business Loan Scheme

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.

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

One/Up to 03 Guarantor/s having cumulative income equal to 1.5 of the amount applied for under the scheme Personal/Blood relations can also give guarantee for a borrower.
A government servant of BPS-16 and above can also act as a guarantee.

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 immoveable property, and will be required only after approval of the loan.

Permissible collaterals (business hypothecation)

Pricing

6% 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

Whole of Pakistan
In the 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 along with facilitation to receive and dispatch the application to the nearest 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 Banks

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;

Important Stats

Banks Applications Received Applications sanctioned Disbursement
No. Amount No. Amount
ABL 12 6 5.60 6 5.60
Askari Bank 22 6 5 6 5
Albaraka 62.00 43.00 36.36 40.00 30.74
Bank Alfalah 24.00 - - - -
Bank Al Habib 54.00 22.00 37.48 22.00 37.48
Dubai Islamic Bank 2.00 2.00 3.70 - -
Faysal Bank - - - - -
FWBL 569 208 237.87 165 184.01
HBL 35 11 15.40 6 7.75
HABIBMETRO Bank 2 - - - -
JS Bank 44 8 14.10 8 14.10
MCB - - - - -
Meezan Bank 509 226 156.77 211 156.94
Sindh Bank 42 26 42.97 25 39.61
Soneri Bank 3 - - - -
Summit Bank 268 205 200.13 187 180.15
UBL 234 47 57.08 33 41.20
Total 1,882 810 812.62 709 702.74

Designed & Developed by

NITB

National Information Technology Board,
Ministry of Information Technology

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