The Prime Minister’s Kamyab Jawan Programme is one of the latest initiatives by the government of Pakistan to improve the entrepreneurial culture in the country.
Under this programme, Rs.100 billion will be distributed amongst the youth in the form of loans to help and support their business venture.
The loans will be provided under 3 categories and scheme to benefit 1 million individuals.
In order to apply for this program, you have to be eligible for it. The following is the eligibility for the programme:
- All applicants must be between 21-45 and hold CNICs to be eligible
- For IT/ E-Commerce related businesses, the lower age limit will be 18 years
- Â For IT/E-Commerce related businesses, at least matriculation and/or experience of at least six months
- Small enterprises (startups and existing businesses) as per the definition of State Bank of Pakistan and owned by youth as per above-mentioned age brackets are also eligible
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Loan size
Size of the loan is segregated into two tiers, as under
- Tier 1 (T1) loans- Rs 100,000 to Rs. 0.5 million
- Tier 2 (T2) loans- Above Rs 0.5 million and up to Rs 5 million
Loan type          Â
Working capital loans and term loans
Loan Tenor       Â
Up to eight years with a maximum grace period of up to one year
Debt to Equity ratio      Â
- T1 loans- 90:10
- T2 loans- 80: 20
Focus on Women          Â
25% of the loans will go to women borrowers
Security requirements
Security arrangements will be as under
- T1 loans: Clean, however, only personal guarantee of the borrower
- T2 loans: As per the bank’s own credit policy
PricingÂ
Pricing for Working Capital and Term Loans
- T1 loans: 6% p.a. fixed for the borrower
- T2 loans: 8% p.a. fixed for the borrower
Application form           Â
- The form would be both in English and Urdu and require minimum essential information with a simple format
- The processing time will not exceed 15 days and will be stated clearly in the application form
- A non-refundable form processing fee will be Rs. 100 (Rupee One Hundred Only).
- The applicant shall apply directly via Prime Minister Kamyab Jawan portal i.e http://yes.kamyabjawan.gov.pk/BankForm/ApplicantForm
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Source: Business Recorder