Sunday, June 16, 2024

PM Youth Loan Scheme 2024 Online Apply | PMYBL Online Registration

PM Kamyab Jawan Youth Entrepreneurship Scheme was introduced by Imran Khan as former prime minister. However, Prime Minister Shehbaz Sharif has restructured the entire scheme. Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB ALS) is the new name of the scheme (PM Youth Loan Scheme ), and the Government of Pakistan has approved it.

Kamyab Jawan Program Online Apply

SBP will finance agricultural projects based on its “Indicative Credit Limits & Eligible Items for Agriculture Financing “. Our financing options include long-term loans, working capital loans, murabaha, and leasing/financing locally manufactured commercial vehicles.

There is only one vehicle per borrower. It is possible to finance more than one vehicle in the food franchise and distribution business. 65% of the total financing limit can be used for civil works. Agriculture loans are eligible for production and development.

Prime Minister House Loan Scheme In Pakistan

For T1 loans, the maximum loan term is 3 years, and You will make repayment in equal monthly installments. At or before maturity, crop loans will be repaid in one lump sum due to their tenor of one year. There is a maximum loan term of 8 years for T2 and T3 loans.

Under T2 and T3, working capital and production loans have a 5-year tenor. In the beginning, banks will only be able to lend markup, and then the principal and the markup will be repaid in the next 3 years, making the total repayment period up to 5 years.

Eligibility Criteria of PM Loan Scheme

  • Entrepreneurial Pakistani citizens aged 21-45 with a valid CNIC are eligible.
  • In IT/E-Commerce businesses, the minimum age limit will be 18, and at least enrollment is required.
  • Sole proprietors and individuals are subject to above-age conditions.
  • Only one owner, partner, or director must be in the above age bracket for all other businesses, including partnerships and companies.
  • Also eligible are small and medium enterprises owned by youth in the above age brackets.
  • Farmers will be classified based on SBP’s “Indicative Credit Limits & Eligible Items for Agriculture Financing “.

Kamyab Jawan Program Online Registration [Phase 1, 2 & 3]

There are three levels of loan size as follows:

  • Up to Rs 0.5 million for Tier 1 (T1)
  • Tier 2 (T2): Over Rs 0.5 million and up to Rs 1.5 million
  • T3: Above Rs 1.5 million and up to Rs 7.5 million

Loan Type

  1. Loans for term/working capital, including Murabaha, and leasing/financing locally manufactured vehicles
  2. There is a limit of one vehicle per borrower. A food franchise or distributor can finance more than one vehicle
  3. The Civil Works financing limit is 65%
  4. Loans for agriculture production and development are eligible

Loan Tenor

Youth Business & Agriculture Loan Scheme (now Kamyab Jawan Youth Entrepreneurship Scheme) offers loans as follows:

  • We will repay the amount owed in equal monthly installments. However, when it comes to crop loans, the tenor will be up to 1 year, and repayment will be a lump sum on or before maturity
  • Loans T2 & T3 – Up to 8 years with a maximum grace period of one year

Working capital loans, production loans, and Murabaha under T2 and T3 will have a tenor of up to five years. Banks can lend working capital/production loans where markup and principal are payable in the first two years, and after that, both are payable in the third year.

Debt–Equity Ratio

  1. For new businesses, the debt-to-equity ratio is 90:10 for T1 and T2 and 80:20 for T3.
  2. Once the loan is approved, cash or immovable property will be required as the borrower’s equity contribution
  3. All tiers of existing businesses have a debt/equity ratio of zero

Bank Rate

  • T1 – KIBOR+9%, including KIBOR+1% wholesale lenders’ margin and 8% MFB/MFI margin.
  • KiBOR+3% K2 & K3
  • Markup subsidy calculation will be based on six months of KIBOR offer.

End User Rate

  • 0% at T1
  • 5% for T2
  • 7% for T3

Security Requirements of PMYBL Scheme

Here is the security arrangement:

  1. The borrower’s guarantee is the only security for T1.
  2. MFBs & MFIs must also adhere to SECP/SBP rules.
  3. Borrower’s personal guarantee only (T2).
  4. As per bank policy.
  5. Secured by T1, T2 & T3 vehicles.

Risk Mitigation

On the bank’s disbursed portfolio, the government will bear credit losses only on the principal portion:

  1. Including 40% wholesale lenders on a pari-passu basis and 10% MFBs/MFIs on a first-loss basis
  2. On the first loss, up to 25%
  3. Based on the first loss, up to 10%

Number of Loans Per Borrower

  • The overall maximum financing limit of Rs 7.5 million applies to two loans (including a long-term and a short-term loan).
  • There is a maximum financing limit of Rs 7.5 million per customer for agricultural loans.

Sectors and Products

There is a wide range of products and sectors. Agriculture, including livestock, poultry, fishery, dairy, etc., includes all crop and non-crop sectors.

Executing Agency (EA)

Join us if you’re a commercial or Islamic bank.

  • In T1, banks and DFIs should act as wholesale lenders for MFBs and MFIs
  • T1 loans will be processed and disbursed through wholesale lenders’ selected MFBs/MFIs

Focus on Women

Approximately 25% of loans under PMYB ALS (Prime Minister Youth Business and Agriculture Loan Scheme) will go to female entrepreneurs. Therefore, we will give about 25% of the PMYB ALS loans to female entrepreneurs.

Allocation in Budget

In each fiscal year’s budget, the Finance Division will allocate funds for the revised PM’s Kamyab Jawan Youth Entrepreneurship Scheme (YES). SBP will submit consolidated claims of all banks quarterly for payment.

How To Apply Online PM Youth Loan Scheme Application Form

  • The PM Youth Program (PMYP) Portal is prescribed for effective monitoring.
  • In addition to English, Urdu is provided on the portal.
  • It is designed to provide a centralized platform for applicants to apply directly to banks via the portal.
  • The portal will be hosted and controlled by the National Information Technology Board, Ministry of IT and Telecommunication.

We will restrict access to the portal to specific stakeholders, e.g., individuals applying for loans. SMEDA provides handholding/guidance support to banks for receiving applications. For monitoring purposes, the PM Youth Office retrieves information.

Moreover, they will conduct an external portal audit from expert IT auditors annually to ensure that it is used only for the intended purposes by stakeholders. As a result, timely identification of unauthorized use of the online portal is made.

Turn Around / Processing Time

The application form states that the processing time is 45 days at maximum. The form processing fee will be Rs. 100/-, including the NADRA online CNIC verification fee.

Monitoring

Monitoring the subsidy budget and setting triggers will be devised by SBP in collaboration with the Finance Division and banks.

The SBP will publish quarterly consolidated loan information on its website for public information.

  1. Geographical Distribution
  2. PM Youth Loan Scheme (YES) or PMYB ALS will be available to Pakistan
  3. Branches of NBP will be designated per division

Additional Measures

Additional measures should be taken by Executing Agencies:

  • You should assess entrepreneurial potential.
  • Loans to existing businesses require a robust independent verification mechanism to ensure proper utilization
  • Developing and implementing a robust monitoring system for new businesses is important
  • The scheme’s impact may be measured using a comprehensive monitoring and evaluation framework
  • The Prime Minister (Youth Affairs) Office may hire an auditor, evaluator, and monitor
  • To ensure the successful implementation of this scheme, SBP has asked financial institutions to ensure they have proper systems in place.

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Farhan Ahmad
Farhan Ahmad
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