KARACHI: The State Bank of Pakistan (SBP) has issued a procedure for obtaining loans under the Prime Minister's Successful Young SME Landing Program, a program to provide interest-free loans to young people on easy terms for small businesses.
According to the SBP, loan application forms can be obtained from the branches and websites of the National Bank, Bank of Punjab, and Bank of Khyber. Banks have also been directed to include their toll-free numbers on the application form to guide the youth in running their businesses.
Prime Minister's Loan Scheme; The process of obtaining loans for the youth continues
Application forms can be obtained from the branches and websites of the National Bank, Bank of Punjab, and Bank of Khyber. Photo: File
Application forms can be obtained from the branches and websites of the National Bank, Bank of Punjab, and Bank of Khyber. Photo: File
KARACHI: The State Bank of Pakistan (SBP) has issued a procedure for obtaining loans under the Prime Minister's Successful Young SME Landing Program, a program to provide interest-free loans to young people on easy terms for small businesses.
According to the SBP, loan application forms can be obtained from the branches and websites of the National Bank, Bank of Punjab, and Bank of Khyber. Banks have also been directed to include their toll-free numbers on the application form to guide the youth in running their businesses.
The issuance of application forms will be initiated by the Prime Minister immediately after the official inauguration of the program. Under the program, young people can get loans of Rs 1 lakh to Rs 5 lakh from banks for their business on which interest will be paid by the government and the burden of compensation on loan losses will be borne by the government itself.
Men and women between the ages of 21 and 45 with computerized ID cards can take out loans to start their own businesses under the program. There is a special age limit for IT and e-commerce and young people under the age of 18 can avail of this scheme for e-commerce or IT-related business.
Under the program
There are two levels of loans in terms of value. In the first category, loans of Rs. 100,000 to Rs. 500,000 can be obtained, while in the second category, loans ranging from Rs.
These loans will be given in the form of working capital and term loans for a period of 8 years with an extension of one year. For a first-class business, young people have to invest 10% of their own, while for a second-tier business, young people have to provide 20% of their capital.
The quota for women for loans has been fixed at 25%. Loans ranging from Rs. 100,000 to Rs. 500,000 will be given on a personal guarantee. Loans ranging from Rs. 500,000 to Rs. 500,000 will be issued by banks keeping in view their concerns.
The federal government will pay 50 percent on small loans and 10 percent on large loans in case of debt default. The National Bank of Pakistan will issue 50% of loans under the program and the remaining loans will be issued under the supervision and consultation of the Bank of Punjab and Bank of Khyber State Bank.
The SBP has also urged other commercial banks to be part of the program. Under this program, loans will be issued for schemes and projects that meet the criteria set by the Small and Medium Enterprise Development Authority, as well as for projects designed by the private sector.
The processing of loan applications will be completed within 15 days. Under this program, in addition to new business, loans can also be taken for the expansion of existing business.
Tags:
Loans