|1||Brief Description||Small Business Loans will focus on (but will not be restricted to) unemployed youth, especially educated youth looking for establishing or extending business enterprises|
|2||Eligibility Criteria||All men/women holding CNIC, aged between 21 and 45 years with entrepreneurial potential to apply from designated branches mapped with area of residence/business.|
|3||Security Requirements||One guarantor|
|4||Permissible Collaterals||Business hypothecation|
|5||Focus on Women||50% of loans will go to women borrowers|
The borrower’s contribution of equity would be in the form of cash or immovable property and will be required after approval of the loan.
|7||Loan Period||Tenor of loan upto 7 years with six (6) months grace period.|
|8||Pricing||8% fixed for borrower. Government will pay the difference of the cost at KIBOR+500bps|
|9||Risk Mitigation||Government will bear upto 5% losses on the portfolio of the bank under this scheme|
|10||Number of Loans||100,000|
|11||Size of Loan||Upto Rs 2,000,000 (Twenty Lacs)|
|12||Allocation in Budget 2013-14||Rs. 5 billion|
|13||Executing Agency||In the first instance, National Bank of Pakistan (NBP) and First Women Bank Limited (FWBL) under the guidance and supervision of State Bank of Pakistan. SBP to ensure participation of private banks:
a) Private banks will be required to participate in this scheme on the basis of soundness of business proposals; and
b) SBP will encourage private banks to build this portfolio commensurate with their size.
c) SBP will arrange appropriate training for private banks to implement this scheme.
d) NBP will continue to play the lead role.
|14||Sectors and Products||All sectors. Standardized schemes/ projects/ undertakings will be designed by SMEDA, projects designed by private sector service providers or by individuals themselves will also be admissible.
Role of SMEDA:
a) The 50 feasibilities prepared and uploaded by SMEDA will be extensively publicized and their access to public made easier through multiple linkages with other relevant websites.
|15||Application Form||The Form would be both in English and Urdu; and require minimum essential information with simple format.
The processing time will not exceed 15 days and will be so stated clearly in the application form; and
The forms would be readily available both in branches and through dedicated websites of the banks.
Non-refundable form processing fee will be Rs. 100 (One Hundred).
|16||Monitoring||SBP will publish consolidated information about the loans extended under this scheme for information of the public on quarterly basis on its website;
An effective Complaint Center to process and resolve complaints will be set up;
E-government directorate of Ministry of IT will provide support
|17||Geographical distribution||Whole of Pakistan. In case of Balochistan, at least one branch of NBP will be designated per Division.
All non-designated NBP branches will also provide and receive filled application forms and dispatch them to the nearest branches.
|1||Youth Business Loans|
|2||Brochure for Prime Minister Youth Business Loans|