Under the program, the government will provide a subsidy of Rs24 billion over a period of five years by not collecting interest on loans. After the launch of this program, the Prime Minister’s Youth Business Loan Scheme, initiated by the previous administration of Pakistan Muslim League-Nawaz (PML-N), will cease to exist.
The online application link is given below.
Sources said Prime Minister Imran Khan had formed a committee comprising the minister for communication, an adviser to the prime minister on finance and special assistant to the prime minister on youth affairs to fine-tune the loan program.
Government officials also held meetings with officers of the State Bank of Pakistan, National Bank of Pakistan, The Bank of Punjab and the Bank of Khyber. Later, an effective program for SME lending called the Prime Minister’s Kamyab Jawan scheme was developed.
Under the scheme, three types of subsidized loans will be disbursed. Under tier-1, loans of up to Rs0.5 million will be provided, under tier-2 loans will range from Rs0.5 million to Rs10 million and under tier-3 loans will range from Rs10 million to Rs25 million.
In the tier-1, a credit will be considered as clean lending with an only personal guarantee of the borrower while in the tier-2 and tier-3, banks may follow their own credit policy.
The loan scheme will allow unemployed people in the age bracket of 21-45 years to apply for affordable financing for starting a new business or strengthening their existing business.
Prime Minister’s Kamyab Jawan loan program will help to meet the government’s target of creating 2 million jobs through the SME sector as approved by the premier under the National Financial Inclusion Strategy.
It is estimated that around Rs600 million in the first year and Rs3.8 billion in the second year are required to be allocated by the government for providing mark-up subsidy and credit loss subsidy under the program.
If you want to apply online here is the LINK.
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