Prime Minister’s youth scheme for the promotion of young entrepreneurs for developing their own means of earning is being launched today. Earlier in November, 2013 State Bank issued introductory material about the Prime Minister Youth Loan scheme. Pakistani youths could avail the loan facility up to PKR 2 million for the development of their own business. Federal Government has initially allocated PKR 5 billion for the scheme.
National Bank of Pakistan will act as issuing authority of the loan and people from age 21 to 45 will be eligible to avail loan from Rs 100,000 to Rs 2 million with 8 percent markup per annum. The tenure for small business loans will be up to seven years. The debt equity contribution ratio of 90:10 will be used for SME beneficiaries of Pakistani provinces, Gilgit-Baltistan, Azad Kashmir and FATA areas.
State Bank of Pakistan has identified 400 branches for loan disbursement across Pakistan. Small and Medium Enterprise Development Authority (SMEDA) will also facilitate the implementation of Prime Minister youth scheme by providing advisory services. Other participant banks in scheme are National Bank of Pakistan and First Women Bank.