Monday, 9 December 2013

Prime Minister's Small Business Loan Programme for Youth

Prime Minister's Small Business Loan Programme for Youth




Run your own business!

Prime Minister’s ‘Youth Business Loan’, for young entrepreneurs between the age group of 21 – 45 years, is designed to provide subsidized financing at 8.0% service charges per annum for nearly one hundred thousand (100,000) beneficiaries, through designated financial institutions namely National Bank of Pakistan (NBP) and First Women Bank Ltd. (FWBL).

Small business loan with tenure up to 8 years, with first year grace period, and a debt : equity of 90 : 10 will be disbursed to SME beneficiaries across Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwah, Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir and Federally Administered Tribal Areas (FATA). It has a 50% quota for women and 5% quota for families of Shaheeds, Widows and Disabled persons.

Forms are available at branches of all participating banks for free and you need to submit your form with a valid copy of your CNIC and your business plan.



These pre-feasibility 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.

Brief description


Prime Minister’s Business Loans will focus on unemployed talented youth of Pakistan, irrespective of location and background looking for establishing new enterprises.

Eligibility criteria

All young men/women, Pakistani citizens with a valid CNIC. Age 21 – 45 Years. Entrepreneurial potential.

Focus on women

50% of loans will go to women.

Debt-Equity ratio

90:10 with tenor of up to 8 years; 1st year grace period and then easy monthly installments for 7 years.

Pricing

8% fixed for borrower but government will pay the difference of 7% and any other charges

Refinancing

SBP to explore providing 50% refinance at the risk of participating banks

Risk mitigation

Government will share 50% of losses subject to a maximum of 10% of the loan amount

Number of Loans

100,000 in fiscal year 2013-14

Size of Loan

Rs.0.1 – 2.0 Million

Executing agency

NBP and First Women Bank under the guidance and supervision of SBP. Forms are available across Pakistan on all branches or online

Sectors and Products

All sectors. Standardized schemes/projects/ undertakings will be designed by SMEDA, projects designed by private sector service provider or individuals themselves.

For Information, Complaints and Feedback, you may call on our Toll Free Number: 080-077-000 or SMS: 80028




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