Youth Loan Scheme relaunched with interest-free microloans. Prime Minister’s Youth Loan Scheme, which offers youth interest-free and subsidized loan programmes, has been relaunched by the federal government.
The project has resumed operations after being put on hold for the previous five months, with changes made to make it more advantageous for small and medium-sized businesses and agricultural operations.
In a notification, the State Bank of Pakistan said ‘the revised scheme has introduced two new components of financing, namely micro-loans and agriculture loans’.
SBP maintained that the scheme offers financing of up to Rs 75 lace each in three slabs, for a maximum period of up to nine years. It further added that one-fourth of the loans will go to women borrowers and the processing time will not exceed 1.5 months.
Eligibility Criteria
- Pakistani national, aged between 21 and 45 years with entrepreneurial potential
Matriculation or equivalent education for IT/E-Commerce related businesses; age limit lowered to 18 years - For agriculture loans, State Bank Indicative Credit Limits & Eligible Items for Agriculture Financing 2020 will be applicable
Loan Size
|
Tier 1 (T1) |
Up to Rs 0.5 million |
|
Tier 2 (T2) |
Above Rs 0.5 million and up to Rs 1.5 million |
|
Tier 3 (T3) |
Above Rs 1.5 million and up to Rs 7.5 million |
The ousted government led by Imran Khan first introduced Kamyab Jawan Youth Entrepreneurship Scheme while the Sharif-led government revised the scheme and renamed it to Prime Minister’s Youth Business & Agriculture Loan Scheme.
