Eligibility Criteria

i.All residents of Pakistan holding CNIC, matured somewhere in the range of 21 and 45 years with enterprising potential are qualified.

ii. For IT/Web based business related organizations, the lower age cutoff will be 18 years and essentially registration or comparable training will be required. Above age limit condition is relevant on people and sole owners. In the event of any remaining types of business including associations and organizations, only one of the proprietors, accomplices or chiefs should be in the age section recommended previously.

iii. Little and Medium Ventures (new companies and existing organizations) claimed by youth according to previously mentioned age sections are likewise qualified.

iv.In instance of horticulture, ranchers’ grouping according to SBP’s “Characteristic Credit Cutoff points and Qualified Things for Farming Supporting 2020” will be material.Loan Size
Size of loan is segregated into 3 tiers, as under:

Tier 2 (T2): Above Rs 0.5 million and upto Rs 1.5 million

Tier 3 (T3): Above Rs 1.5 million and upto Rs 7.5 million/p>

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.

Loan Tenor
T2 & T3: Upto 8 years for long term/development loans with maximum grace period of upto one year.

For working capital/production loans and murabaha under T2 and T3, tenor will be upto 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 upto 5 years.

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.

End User Rate
T2: 5%

T3: 7%

Security Requirements
Security arrangement will be as under:

T2: Clean (secured only by personal guarantee of the borrower).

T3: As per banks policy.

Vehicle(s) financed under T2 & T3 to serve as collateral.

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.

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.

Online Application Form on PM Youth Portal
For effective monitoring, online application form is prescribed through PM Youth Program (PMYP) Portal. The Form would be both in English and Urdu as provided on the portal.

The purpose of the portal is to provide a centralized platform through which applicants would be able to apply directly to the relevant banks. The portal will be hosted and controlled by National Information Technology Board, Ministry of IT and Telecommunication.

Geographical Distribution
Whole of Pakistan.

Fees & Charges
Processing Fee: Rs. 100

Other Charges: At Actual



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