Prime Minister's Youth Programme
Prime Minister’s Youth Business and Agriculture Loan Scheme (PMYB&ALS) promotes entrepreneurship among youth by providing business loans on simple terms and with less markup. All Pakistani residents, aged between 21 and 45 years with entrepreneurial potential are eligible to apply for the loan.
Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS) has been launched with the following features;
1 | Eligibility Criteria |
|
||||
2 | Loan size | Tier 2 (T2): Above Rs 0.5 million and up to Rs 1.5 million (Secured) Tier 3 (T3): Above Rs 1.5 million and up to Rs 7.5 million (Secured) |
||||
3 | Loan type | Term loans/ working capital loans including murabaha and leasing/financing of machinery and locally manufactured vehicles for commercial use. Only one vehicle per borrower is allowed. A borrower in food franchise and distribution business may avail financing for more than one vehicle. Upto 65% of total financing limit can be availed for Civil Works. For agriculture, production and development loans are eligible. |
||||
4 | Loan Tenor | T2 & T3: up to 8 years for long term/development loans with maximum grace period of up to one year. For working capital/production loans and murabaha under T2 and T3, tenor will be up to 5 years. Banks will have the option to lend working capital/production loans wherein only markup will be payable during first 2 years and thereafter both principal along with the markup will be paid in next 3 years making it total repayment period of up to 5 years. |
||||
5 | Debt: Equity ratio | For New Businesses: T2 – 90:10 T3 – 80:20 The Borrower’s contribution of equity would be in the form of cash or immovable property and will be required after approval of loan. For Existing Businesses: Nil for all tiers. |
||||
6 | Bank rate | T2 & T3: KIBOR+3% Six months KIBOR offer will be used for calculation of mark-up subsidy. |
||||
7 | End user rate | T2: 5% T3: 7% |
||||
8 | Security Requirements | Security arrangement will be as under:T2: (secured). T3: (Secured), As per banks policy. Vehicle(s) financed under T2 & T3 to serve as collateral. |
||||
9 | Number of loans per borrower | A customer may avail maximum two loans (including one long term and one short term loan) within overall maximum financing limit of Rs 7.5 million.In case of agriculture, a customer may avail one production loan and one development loan within overall maximum financing limit of Rs 7.5 million. | ||||
10 | Sectors and Products | All sectors and products. Moreover, in case of agriculture, all crop and non-crop sectors (including crop production, livestock, poultry, fishery, dairy etc.) are also eligible. | ||||
11 | Focus on Women | 25% of the loans will go to women borrowers. | ||||
12 | Fees & Charges | Processing Fee : Rs. 100 Other Charges : As per Schedule of Charges (SOC) |
All eligible persons can apply for the loan by visiting https://pmyp.gov.pk/. Please select “Sindh Bank Limited” in the drop down under Bank Name.
Upon receiving the application online, Sindh Bank representative will contact you for application processing.
To calculate your loan repayment, follow the link: https://pmyp.gov.pk/pmyphome/Calculator
To apply online, fill in the application form here: https://pmyp.gov.pk/BankForm/newApplicantForm
For FAQs please visit https://www.sbp.org.pk/Incen-others/pdf/FAQs-PMYBALS.pdf