Youth Business Loan Scheme to start from 5th December 2013
Islamabad: Prime Minister Nawaz Sharif is going to officially start the Youth Business Loan Scheme on December 5, 2013. The ceremony will be held in Islamabad on Thursday, 2nd December 2013. Youth Business Loan Scheme was launched by the Govt. of Pakistan to increase the economic activity in Pakistan and to enhance the businesses in all the four provinces of Pakistan.
Prime Minister’s ‘Youth Business Loans’ scheme is being launched from Thursday to help young entrepreneurs initiate their own businesses. 5 Billion rupees have been allocated for this scheme.
The following three changes have been made:
- The scheme will start from December5, 2013 instead of earlier announced date which was December2, 2013.
- The age limit has been changed. The minimum age must be 21 years and maximum allowed age at the time of application is 45 years. Previously the upper age limit was 35 years.
- The minimum amount of loan which can be granted is now Rs. 100,000. Now you can get a loan from 1 lakh to 20 lakh rupees on 8% interest.
It is designed to provide subsidized financing at eight percent mark-up per year for one hundred thousand beneficiaries through National Bank of Pakistan and First Women Bank.
The age limitations are from 21 years to 45 years. Any Pakistan can apply to this loan scheme unless he fulfills the requirements. The maximum amount of loan which can be provided is two million rupees.
Small business loans with tenure up to seven years and a debt-equity ratio of 90:10 will be disbursed to SME beneficiaries across Pakistan including four provinces‚ Gilgit-Baltistan‚ Azad Jammu and Kashmir and Federally Administered Tribal Areas (FATA).
SMEDA has been tasked with an advisory role in the implementation of Prime Minister’s scheme by providing more than fifty updated pre-feasibilities for referencing by the beneficiaries and participating banks to optimally utilize their financial resources.
SMEDA has prepared per-feasibility studies in fifteen sectors‚ which are available to new start-up SMEs‚ through the SMEDA website. These studies provide a general understanding of the proposed business and are structured like a business plan.
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