Federal cabinet approves ‘Kamyab Jawan’ programme
ISLAMABAD: The federal cabinet on Tuesday approved to give short loans to youth under its ‘Kamyab Jawan’ programme. A quota of 25 per cent is dedicated to women under the scheme.
The banks will give the loans for six per cent interest rate for loans up to 0.5 million and eight per cent on loans up to five million said Advisor to Prime Minister on Information Dr Firdaus Ashiq Awan. The cabinet also approved recommendations sent by the Economic Coordination Committee.
Prime Minister’s assistant on youth affairs Usman Dar said that it’s a big achievement that despite such tough financial situation, the government was able to allocate Rs 100 billion for the youth development.
Prime Minister Imran Khan told the financial advisor to inform the masses of the disastrous economic policies adopted by the previous governments.
Dr Awan said that the government has introduced a new local bodies system in the Khyber Pakhtunkhwa and will soon implement a new system in Punjab, she added that a local government board will be made for Islamabad and former finance minister Asad Umar will be its member.
New education policy will be made by the government and the education minister will soon give a briefing on it, said the advisor.
Prime Minister’s Youth Business Loan Scheme
The name of the scheme will be “Prime Minister’s Youth Business Loans” and it will focus on (but will not be restricted to) unemployed youth, especially educated youth looking for establishing or extending business enterprises.
Applicant may apply for loans under this scheme only from the designated branch mapped with his/her area of residence/business
One/Up to 03 Guarantor/s having cumulative income equal to 1.5 of the amount applied for under the scheme Personal/Blood relations can also give guarantee for a borrower.
A government servant of BPS-16 and above can also act as a guarantee.
Focus on Women
50% quota of women borrowers.
90:10 with tenor of up to 8 years (including 1 year grace period). The borrower’s contribution of equity would be either in the form of cash or immoveable property, and will be required only after approval of the loan.
Permissible collaterals (business hypothecation)
6% fixed for borrower but government will pay the difference of the cost at KIBOR+500 bps.
Sectoral Distribution of Loans
For the time being, there will be no limit on the maximum number of loans for any sector. Placement of ceilings can be considered subsequently keeping in view the importance of sectors and applications received for various sectors.
Size of Loan
Up to Rs. 20 lacs
Whole of Pakistan
In the case of Balochistan, at least one branch of NBP will be designated per division
All non-designated NBP branches will guide the borrowers to the nearest designated branch along with facilitation to receive and dispatch the application to the nearest designated branch if so requested by the borrower.
SBP to ensure that loans are broadly in conformity with provincial populations.
Form processing Fee
Non-refundable form processing fee would be Rs.100/- at the time of submission of form. However, no fee will be charged for the form itself and a photocopy will also be admissible.
Will require minimum essential information and the format will be as simple as possible to facilitate applicants
SBP will arrange appropriate training for private banks to implement the scheme. NBP and FWBL will provide appropriate training to their own staff. NBP will also assist in training of FWBL and SMEDA Staff
- National Bank of Pakistan(Branches)
- Frst Women Bank Limited(Branches)
- Habib Bank Limited(Branches)
- Habib Metropolitan Bank(Branches)
- Bank Al-Habib(Branches)
- Sindh Bank(Branches)
- Summit Bank(Branches)
- Al Baraka Bank(Branches)
- Dubai Islamic Bank(Branches)
- Allied bank Limited(Branches)
- Muslim Commercial Bank(Branches)
- JS Bank(Branches)
- United Bank Limited(Branches)
- Askari Bank(Branches)
- Soneri Bank
- Meezan Bank
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.
Role of SMEDA:
The 50 or so feasibilities prepared and uploaded by SMEDA would be extensively publicized and their access to public made easier through multiple linkages with other relevant websites;
SMEDA will work closely with Punjab Information Technology Board (PITB) to ensure that the schemes are accessible to those who participated in the PITB survey;
|Banks||Applications Received||Applications sanctioned||Disbursement|
|Bank Al Habib||54.00||22.00||37.48||22.00||37.48|
|Dubai Islamic Bank||2.00||2.00||3.70||–||–|