Nov 24

Youth Small Business Loan Scheme Starts 2nd December, 2013 For Online Apply

Six Youth Schemes has launched By our PM’s.In which Loan Youth Scheme is now started on 2 December 2013.

PM announced that small business loan scheme will start from 2nd December, 2013.In small business scheme all of them who has a talent and able to do some business can get loan at the range of the 5 lakh (500,000) to 20 lakh (20,00,000)  from bank.

Purpose of Scheme:pm loan scheme pakfriends

The main purpose of this small business scheme is that to pervoides small business loan all those educated and talented students which are unemployed so that the unemployment can be reduce from our country.Through this scheme the employment level in pakistan also increase for other people.

Eligibility Criteria:

The age limit of the women also shows in this scheme for those women who start business .The Females age between 21 to 45 year having ability to start their own business or intend to expand the existing business.pplicant should have some experience of relevant field or holds a business related diploma/certificate pertaining trade of proposed business setup.

Pricing/Mark-up Rate:

8% p.a.


Tenure of the loan will maximam 7 year.Tenure  depends upon the the business condition , behaviour of getting income from business and marginal income from this business.It also depend upon the repayment capacity.First year of loan is grace period, pay back will start from the onset of 2nd year of loan.

Finance Limit:

Minimum Finance Limit : Rs. 500,000/-

Maximum Finance Limit : Rs. 2,000,000/-

Processing Time:

Processing time will not exceed 15 working days after submission off complete basic documents by the applicant.

Borrowers Capital:

10% of the loan amount


From Rs. 500,000/- to Rs 749,999/- will be secured against Hypothecation of stocks/Assets & two personal guarantees of high net/credit worthy individuals including one of government servants minimum in BPS 17. From Rs. 750,000/= up-to Rs 2,000,000/= will be secured against tangible securities such as Lien on deposit certificates, property mortgage, pledge of gold ornaments, Pledge of stocks.

Repayment of Loan:

Equal monthly installments with grace period of 6 months for principal payment

Sector and Products:

All sectors. Borrowers will be encouraged to obtain standardized schemes/projects/undertakings from SMEDA or any other body but this will not be mandatory for the borrower.