Prime Minister Youth Loan Scheme Some Changes Have Been Made: Prime Minister’s ‘Youth Business Loans’ Are Being Launched From December 10, 2013
Prime Minister Youth Loan Scheme Some Changes have Been Made: Prime Minister’s ‘Youth Business Loans’ Scheme are being launched from December 10, 2013
- ISLAMABAD Prime Minister’s ‘Youth Business Loans’ are being launched from December 10, 2013 to help young entrepreneurs initiate their own businesses. The Government has allocated five billion rupees for the scheme for the current financial year.
It is designed to provide subsidised financing at eight percent mark-up per annum for one hundred thousand beneficiaries through National Bank of Pakistan and First Women Bank.
Those falling in the age group of 21 and 45 years are eligible to apply for loans from one hundred thousand to two million rupees.
The following two 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.
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-feasibility for referencing by the beneficiaries and participating banks to optimally utilize their financial resources.
SMEDA has prepared pre-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.