Download Prime Minister's Business Loan Scheme Pre-Feasibility and Business Plans outlined by SMEDA

Prime Ministers Youth Business Loan Scheme

The Government of Pakistan under the label of "Prime Ministers Youth Business Loan Scheme" has taken an excellent initiative of giving loans to the general public aged between 21 and 45 years. This scheme has great potential for playing a vital role in improving the country's economy if implemented with full transparency. Its conditions of eligibility are laudable because maintaining the upper age limit of 45 years will give maximum advantage to those with skill and ability who have yet not been able to earn and contribute to the society as per their abilities. In a country where discrimination against the women is often debated and highlighted, 50% of the funds being earmarked for either of the two genders also ensures gender equality as a prime agenda of the government. Also the growing number of victims of the wave of terrorism in the past decade have been given a special 5% quota (which also includes disabled persons quota). And a great plus of the project is that anybody whether employed or un-employed can apply for a loan provided that he / she has a feasible business plan / entrepreneurial abilities. The loan can be sanctioned of any amount from Rs. 0.1 to Rs. 2.0 Million keeping in view the feasibility of the project, and the entrepreneur can use the amount for starting a new or growing an already existing business. Mark-up to be paid by the loan applicant is also 8% while 7% will be paid by the Government itself, and the maximum period for loan re-imbursement in installments is 8 years including the 1st year during which reimbursement of installments would not commence. A total of 100,000 loans will be paid and the total allocation for this scheme is Rs. 5 billion.

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