The federal government of Pakistan has relaunched the Prime Minister Youth Business Loan under the guidance of Prime Minister Mian Shehbaz Sharif. This is a micro-finance interest-free and subsidized loan scheme for young and upcoming entrepreneurs.
The project was suspended for a total of five months before it was relaunched with a few changes made to it. Thanks to the changes made, this loan scheme is also great for agriculture operations and businesses on a smaller or medium scale.
Here is everything you need to know about Prime Minister Youth Business Loan.
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What Do You Get with Prime Minister Youth Business Loan?
A notification was issued by the State Bank of Pakistan in which it stated, “the revised scheme has introduced two new components of financing, namely micro-loans and agriculture loans.” You can get a total of Rs 75 lacs in loan in three slabs that need to be returned in nine years.
A total of one-fourth of these loans will be provided to female entrepreneurs, which is a great sign. The processing time of the loan is promised to take not more than 1.5 months.
Who is Eligible for this Loan?
The Youth Business Loan is for a maximum number of people who have a solid business plan and can return it in the specified time. The eligibility criteria for the loan are:
- The loan borrower needs to be a Pakistan national.
- The borrower should be between the ages of 21 years and 45 years with entrepreneurial potential.
- The borrower should have completed matriculation or its equivalent.
- If not matriculate, the borrower must have a degree in IT or E-commerce related to business. In such cases, the age limit will be lowered to 18 years.
- In case of an agricultural loan, State Bank Indicative Credit Limits and Eligible Items for Agriculture Financing 2020 will be applied.
How many loans Can You Take?
You can draw up to Rs. 500,000 in the first tier, up to Rs. 1,500,000 in the second tier, and up to Rs. 75 million in the third tier.
The Prime Minister Youth Business Loan was first introduced by Imran Khan’s government, but it was stopped by Shehbaz Sharif’s government. It was previously known as Prime Minister’s Kamyab Jawan Youth Entrepreneurship Scheme.