Prime Minister's Loan Scheme
Complete information for Loan Scheme
Forms will be launched by the Prime Minister immediately after the inauguration of the program. Under this program, the youth 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.The burden of debt repayment will be borne by the government itself. Men and women between the ages of 21 and 45 who have a computerized ID card can take out a loan to start their own business under this program. There is a special age limit for IT and e-commerce and young people up to 18 years of age can avail this scheme for e-commerce or IT related business.
How much will the loan be?
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 and in the second category, loans of Rs.
The loans will be give in the form of working capital & term loans for a period of 8 years with an extension of 1 year. Young people will have to invest 10% of their own money for first class business while young people will have to provide 20% capital for second class business.
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 personal guarantee. Banks will issue loans of Rs. 500,000 to Rs. The federal government will pay 50 per cent on small loans and 10 per cent on large loans in case of debt default. The National Bank of Pakistan will issue 50% loans under the program and the remaining loans will be issued under the supervision and consultation of Bank of Punjab and Bank of Khyber State Bank. SBP has also urged other commercial banks to be part of the program. this program, loans will be issued for schemes & projects that meet the criteria set by the Small or Medium Enterprise Development Authority as well as for projects designed by the private sector.
Application Procedure for Loan Scheme
The application form can be obtained from the branches and websites of National Bank, Bank of Punjab and Bank of Khyber. The State Bank of Karachi (SBP) has issued a memorandum of understanding (MoU) with the Prime Minister on the provision of interest free loans to young people on easy terms under the Prime Minister's Successful Young SME Landing Program. According to the SBP, loan application forms can be obtained from the branches and websites of 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 conducting their business.
The process loan application, will be completed within 15 working days. The program covers new business as well as existing business.
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