Prime Minister Youth Business Loan
Prime Ministers are the holder of every country who owns a republic type of government. Prime Minister of Pakistan, who is the most hatred personality in Pakistan and everyone disrespects him. No offense but we need a good prime minister who look after us and make our country a good country. Recently our Prime Minister took out a youth business youth loan, in which he gave loans to the people who needs money. And they are gave loans without interest. He puts up a limit and conditions behind this loan scheme. It was a total scheme and many people were happy from this. 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.
Well they needs many requirement like the one who holds NIC and those who are above 20 and less than 45 age, only they are able to take this scheme, to avail this scheme. Secondly security concerns were 100 percent. They were giving loans to the people and in return they were setting guarantors, the thing from which they were taking 3 peoples nic and information and then they were giving the loans.
Well the conditions and requirements were eligibility criteria. A CNIC holder; Age 21-45 with Entrepreneurial potential and Applicant may apply for loans under this scheme only from the designated branch mapped with his/her area of residence/business. So this was the first and most thing. Then I discussed above about guarantors. 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. They were really very helpful for women and they set a liberty and softness to women. 50% quota of women borrowers, from which you can say that there focus were mostly on women. Then 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. So up till now we saw sensible rules. Then, 6% fixed for borrower but government will pay the difference of the cost at KIBOR+500 bps. As everyone sets a limit that this is the limit and you can only take this much. So the size of the loan were upto 20 Lacs. The sectoral distribution of loans were also added. 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. Then they introduced application forms, traning, form processing fee and some more formalities. If we talk about 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. So this thing was really very helpful and in this helping banks were Habib Bank, NBP, Soneri Bank etc. They made these loan process easier and possible. A good setup of loans.