Nov 20

Punjab University Announced Prime Minister’s Youth Loan Scheme

Prime Minister’s Youth Loan Scheme Announced by University of PunjabPrime Minister’s Youth Loan Scheme

The Prime Minister’s Youth Scheme All Students Of punjan university are stressed to apply loans so that they can start their business.

This scheme of small busniess for educated young person mostlyFocus on those educated youngs who wants to do some business for thier better future of thier family.

The main purpose of this scheme is to remove the unemployment fron our ountery.So all the intrested students must to sumbit few resons or purpose to start its business to their head of departments in next 24 Hours.The applicants must require 10% money with them on request for loan scheme

The Top 50 students selected by the university will be invited in PM House,Islamabad on 25th of November, 2013.

  • Loan up to Rs. 2 Million (Rs. 0.5 Million – Rs. 2 Million)
  • Only 8% markup
  • To be distributed by NBP (National Bank of Pakistan) & FWB (First Women Bank)
  • Total loans are 1 lakh
  • All Pakistani nationals
  • Eligibility – 21 years to 40 years
  • Minimum educational qualification is Middle
  • Students need to submit feasibility of the proposed project
  • One personal guarantee required
  • The applicant must have 10% seed money
  • 15 days approval time
  • The loans will be awarded transparently on pure merit basis
  • 50% quota is for women
  • The loans are to be paid back in seven years
  • Monthly installments
  • To mitigate risk, Government will share 50% of the losses subject to the maximum of 10% of the loan amount
  • Qarz-e-Hasana
  • Qarz-e-Hasana or the microfinance loan facility is aimed at helping the industry raise current access level of 2.5 million people to 5.0 million in the next 5 years.Eligibility criteria:Vulnerable rural and urban poor with a poverty score of up to 40.Focus on women:It is believed that increased economic participation by women can play a significant role in national development. In an attempt to encourage the same, 50% of loans will be given to female borrowers.In addition, independent economic activity will empower Pakistani women both socially and in terms of finances.

    Geographical spread:

    The national outreach of the scheme would not be limited in geographic terms. However, preference would be given to limited and un-served areas.

    This is aimed at engaging the population of these areas in greater economic activity and strengthening the process of development there.


    It is Qarz-e-Hasana or interest free loan. Therefore, no mark-up would be charged.

    Size and number of loans:

    250,000 loans of an average amount of Rs.25,000 would be disbursed as part of the scheme.

    Government Grant 2013-14:

    Rs.3.5 billion have been allocated to the scheme by the Federal Government.

    Executing agency:

    PPAF would be the central executing agency of the scheme. Enlisted partner organizations and community organizations that have necessary expertise and experience will be engaged in the process.

    De-centralization in the process of execution implies greater transparency and increased efficiency.


    To make the fund sustainable, borrowers will be encouraged to return the loan. The amount returned will be deposited to the permanent fund available to the community and be used for future lending.

    In addition, the process will introduce the borrowers to conversion from being “takers” to “givers” that implies positive social and financial effects.