Youth Loan Scheme Details

Youth Loan Scheme Details

Prime Minister Youth Loan Scheme Final Details

Brief Description	Small business Loans will focus on (but will not be restricted to unemployed youth, especially educated youth looking for establishing or extending business enterprises.
Eligibility criteria	All Men/Women holding CNIC, aged between 21 and 45 years with entrepreneurial potential to apply from designated branches mapped with area of residence/business.
Security Requirements	One Guarantor
Permissible Collaterals	Business hypothecation
Focus on women	50% of loans will go to women borrowers.
Debt-Equity ratio	90:10 The borrowers’ contribution of equity would be in the form of cash or immovable property and will be required after approval of the loan.
Loan Period	The maximum tenor of the loan is 8 years, including one year's grace period
Pricing	8% fixed of borrower. Government will pay the difference of the cost of KIBOR + 500 bps.
Number of loans	100,000
Size of Loan	Upto Rs 2,000,000 (Twenty Lacs)
Allocation in budget 2013-14	Rs. 5 Billion
Executing agency	IIn the first instance, National Bank of Pakistan (NBP) and First Women Bank Limited (FWBL) under the guidance and supervision of State Bank of Pakistan( SBP) to ensure participation of private banks: a) Private banks will be required to participate in this scheme on the basis of soundness of business proposals; and b) SBP will encourage private banks to build this portfolio commensurate with their size. c) SBP will arrange appropriate training for private banks to implement this scheme. d) NBP will continue to play the lead role
Sectors and Products	All sectors. Standardized schemes /projects/undertakings will be designed by SMEDA, projects designed by private sector service providers or individuals themselves will also be admissible. Role of SMEDA: a) The 50 feasibilities prepared and uploaded by SMEDA will b extensively publicized and their access to public made easier through multiple linkages with other relevant websites. b) SMEDA will work closely with Punjab Information Technology Board (PITB) to ensure that the schemes are accessible to those who participate in PITB survey.
Application Form	The Form would be both in English and Urdu, and required minimum essential information with simple format. The processing time will not exceed 15 days and will be so stated clearly in the application form; and The form would be readily available both in branches and through dedicated websites of the banks. Non- refundable form processing fee will be Rs. 100 (One Hundred)
Monitoring	SBP will publish consolidated information about the loans extended under the scheme for information of the public on quarterly bases on its website; An effective Complaints Center to process and resolve complaints will be set up; E-government directorate of Ministry of IT will provide support
Geographical Distribution	Whole of Pakistan. In case of Baluchistan, at least one branch of NBP will be designated per Division. All non-designated branches will also provide and receive filled application forms and dispatch them to the nearest branches.

Prime Minister Youth Loan Business Scheme Final Details – PM Youth Loan and Qarz e Hasana Scheme Detail, Application Forms, How to Apply, Application Procudure and Eligibility Criteria – PM Nawaz Sharif Schemes 2013
Guidelines for Prospective Loan Applicants
SMEDA has taken the initiative of developing pre-feasibility studies in fifteen sectors, and as per directions of the Prime Minister, has made them available to new start–up SMEs, through the SMEDA website, for the promotion of an entrepreneurial culture in Pakistan. To date, our website has recorded more than 117,000 downloads of the published pre-feasibility reports.
These prefeasibility studies provide a general understanding of the proposed business, and are structured like a business plan. However, to assist the prospective entrepreneurs / loan applicants, SMEDA will provide a template for business plan preparation and requisite guidelines for the loan applicants, as soon as the loan application forms are made available by the participating banks on their respective websites.
For further details, please contact: NBP, FWBL

Features of PM Youth Business Loan Scheme

Purpose of Scheme:
To provide small business loans in shape of Term loan focus on (but will not restricted to) unemployed youth, especially educated youth looking for establishing or extending business enterprise.
Eligibility Criteria
Females age between 21 to 45 year having ability to start their own business or intend to expand the existing business. Applicant should have some experience of relevant field or holds a business related diploma/certificate pertaining trade of proposed business setup.
Pricing / Markup Rate : 8%
Tenor
Maximum  7  years.  The  tenor  will  depend  upon  the  nature  of  business,  pattern  of  income  and repayment capacity.
Finance Limit
Minimum : 500,000 Rs.
Maximum : 2,000,000 Rs.
Processing Time:
Processing  time will  not exceed 15 working days after  submission of  complete basic documents by the applicant.
Borrower’s Capital : 10% of Loam Amount
Collateral / Security:
From Rs. 500,000/- to Rs 749,999/- will be secured against Hypothecation of stocks/Assets & two personal guarantees of high net/credit worthy individuals including one of government servants minimum in BPS 17.
From Rs. 750,000/= up-to Rs 2,000,000/= will be secured against tangible securities such as Lien on deposit certificates, property mortgage, pledge of gold ornaments, Pledge of stocks.
Repayment of the Loan
Equal monthly installments with grace period of 6 months for principal payment Sector and Products
Sectors and Products
All sectors. Borrowers will be encouraged to obtain standardized schemes/projects/undertakings from SMEDA or any other body but this will not be mandatory for the borrower.
For Prime Minister’s Youth Business Loan Scheme