How to apply for Kamyab Jawan Programme Prime Minister of Pakistan?
Ø All men and women of Pakistan with CNIC and age between 18 and 45
years can avail this opportunity.
The loan
disbursed by the banks under the program will be between Rs. 100,000 to Rs.
5,000,000.
Nominated
Banks
In the first
instance, the following banks will execute the program:
National
Bank of Pakistan (NBP),
Bank of
Punjab
Bank of
Khyber
Later on,
other commercial banks will also be asked to participate in the program by SBP.
Prime
Minister’s Kamyab Jawan SME Lending Program
1. Small
enterprises stimulate economic growth by providing employment opportunities,
fostering innovation and reducing income inequalities. Lack of adequate
financing facilities from formal sources is one of the key challenges faced by
small enterprises and youth entrepreneurs. Government of Pakistan is cognizant
of this situation and is fully committed to enabling youth to avail affordable
financing from banks for establishing a new business or strengthening their
existing business.
2. In order
to provide self-employment opportunities to unemployed youth, Government of
Pakistan is launching Prime Minister’s Kamyab Jawan SME Lending Program across
the country. Government of Pakistan shall provide mark-up and credit loss
subsidy on small business loans in the range of Rs. 100,000 to Rs. 5,000,000
disbursed by banks under the program. The key features of the Program as
approved by the Prime Minister are reproduced below:
Eligibility
Criteria
1. All
men/women holding CNIC, aged between 21 and 45 years with entrepreneurial
potential are eligible. For IT/ E-Commerce related businesses, the lower age
limit will be 18 years.
2. Small
enterprises (startups and existing businesses) as per definition of SBP and
owned by youth as per above-mentioned age brackets are also eligible.
3. For
IT/E-Commerce related businesses, at least matriculation and/or experience of
at least six months.
Loan Size
Size of the
loan is segregated into two tiers, as under:
1. Tier 1 (T1)
loans- Rs 100,000 to Rs. 0.5 million
2. Tier 2 (T2)
loans- Above Rs 0.5 million and up to Rs 5 million
Loan
Type
Working
capital loans and term loans
Loan
Tenor
Up
to 8 years with a maximum grace period of up to one year.
The
borrower’s contribution of equity would be in the form of cash or immovable
property and will be required after approval of the loan.
Focus on
Women
25%
of the loans will go to women borrowers.
Security
Requirements
Security
arrangements will be as under:
1. T1 loans:
Clean, however, only personal guarantee of the borrower
2. T2 loans: As
per bank’s own credit policy
Pricing
Pricing for
Working Capital & Term Loans:
T1 loans: 6%
p.a. fixed for the borrower. The government will pay the difference of the cost
at KIBOR+500bps
T2 loans: 8%
p.a. fixed for the borrower. The government will pay the difference of the cost
at KIBOR+400bps
Executing
Agency
In the first
instance, National Bank of Pakistan (NBP), Bank of Punjab and Bank of Khyber
will execute the program under the guidance and supervision of State Bank of
Pakistan. Subsequently, SBP will also advise other commercial banks for
participation in the program.
NBP will
continue to play the lead role. NBP’s share in total disbursed loans will be up
to 50%.
Sectors and
Products
All sectors.
Standardized schemes/ projects/ undertakings designed by SMEDA, or projects
designed by private sector service providers or by individuals, themselves will
also be admissible.
Application
Form
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.
The forms
would be readily available both in branches and through dedicated websites of
the banks. A non-refundable form processing fee will be Rs. 100 (Rupee One
Hundred Only).
Monitoring
SBP will
publish consolidated information about the loans extended under this program
for information of the public on a quarterly basis on its website.
Geographical
Distribution
The whole of
Pakistan. In case of Balochistan, at least one branch of NBP will be designated
per Division. All non-designated NBP branches will also provide and receive
filled application forms and dispatch them to the nearest branches.
Additional
Measures
Executing
Agencies (EAs) under this program should ensure the following additional
measures:
Criteria for
assessing entrepreneurial potential should be developed and implemented.
In case of
loans for existing businesses, a robust independent verification mechanism may
be introduced to ensure proper utilization of the loans. Further, for new
businesses, a robust mechanism for ongoing monitoring of the loans’ utilization
should be developed and implemented
A mechanism
must be introduced to ensure that the prescribed debt-equity ratio has been
maintained. Before disbursement of the loans, it should be ensured that the
equity is deposited in the bank from the borrower’s own sources where the
equity mechanism is in the form of cash.
3. The banks
are advised to gear up their systems for successful implementation of this
program and to avoid any misuse of the program.
4. Loan
Application Forms will be available both in branches and through dedicated
websites of National Bank of Pakistan, Bank of Punjab and Bank of Khyber. The
standard loan application form is enclosed at Annexure-1. The banks are advised
to mention their toll-free number in the loan application form for the
facilitation of youth entrepreneurs. Eligible borrowers may apply for the loans
immediately after the formal launch of the program by the Prime Minister.
5. The banks
are also advised that with the launch of Prime Minister’s Kamyab SME Lending
Program, Prime Minister’s Youth Business Loan (PMYBL) scheme would cease to exist.