According to the UN Population Fund Report, 2017pakistan has become the fifth-largest population country in the world has around 63% of youth aged between 15 to 33. It is very important to engage such a large youth population in some productive jobs. Pakistan has been facing many problems and one of the major problems that the youth facing is unemployment. There is a lack of jobs in both public and private sectors. So, it is better to start your own business if you have a practical idea, but at the same time, most of the time you face financial challenges. That is why, in order to encourage Pakistan’s youth, Prime Minister Imran Khan introduced the Kamyab Jawan prime minister youth loan scheme initiative. This will help you get loan at low interest rate.
The objective of this initiative was to provide financial and technical aid to unemployed youth across the country. This program helps the youth to get low-cost business loans, and thus by getting loans they can establish their business, and, in this way, they do not only make their life easy but also; they provide opportunities for others. There is no gender discrimination for prime minister youth loan scheme registration. If you are working in the private sector or you have already a business, again you can apply for this loan to expand your small enterprise. Even if your business is not registered, but the registered business has high priority as compared to an unregistered one. The only condition for the prime minister youth loan scheme registration you must be a Pakistani citizen. Today, the article is about if you are planning for starting your own business but are having financial difficulties. Then you are at the right place to know about that how you can apply for the Kamyab jawan program and get approved for the loan to start your own business.
Prime Minister kamyab Jawan program
This program has been launched by PM Imran khan for the youth of Pakistan. Where they can get loans for starting new businesses or expand current ones. This loan is available for to those between the ages of 21-45 years (18 years of IT sectors) .21 Islamic, commercial, and SME banks are providing this loan. They are working under the supervision of the State bank of Pakistan. The initiative is not limited to certain areas of the country; it has been launched throughout the country, including Punjab, Sindh, KPK, Baluchistan, Gilgit Baltistan, and Azad Jammu and Kashmir. In addition, the programs aim to provide 25% of the loans to female entrepreneurs.
Eligibility Criteria
Before applying for prime minister youth loan scheme, you need to know about the eligibility criteria for the loan, and the criteria which are designed for this initiative is following:
- All Pakistani citizens with a CNIC who are between the ages of 21 and 45 and have business potential.
- The minimum age limit for IT / E-Commerce businesses is 18 years
- For IT/E-Commerce-related firms, a matriculation or equivalent education will be necessary.
- Only one of the owners, partners, or directors of a small or medium-sized firm (SMEs) must be between the ages of 21 and 45.
The applicant’s minimum age at the time of application submission is 21, and his or her age should not exceed 45 years. However, if a person was 45 at the time of application submission and his or her age exceeded 45 years before the loan was approved and/or disbursed, this will not affect the applicant’s eligibility. At a time, you cannot apply for more than one loan. Yes, if you are repaid your first loan, then you can apply for the second times.
Financing Tiers
This program’s loans are divided into three categories:
- Tier 1 loans vary from Rs. 100,000 to Rs. 1 million.
- Tier 2 (T2) loans vary from Rs. 1 million to Rs. 10 million.
- Tier 3 (T3) loans are available in amounts ranging from Rs. 10 million to Rs. 25 million
For Tier 1, only the personal guarantee of the borrower is enough, while Tier 2 and tier 3 it is according to the bank’s own credit policy.
Loan’s types/ duration
Anyone can obtain one of three types of loans through this program:
- long-term financing
- a short-term loan
- Leasing/financing of locally manufactured commercial vehicles. Each borrower is only permitted to have one vehicle.
Tenure
- varies depending on the product (2 to 8 years)
- Grace period of up to one year, which may vary depending on the type of financing.
Debt Equity for New Businesses with Customer Pricing
The Borrower’s equity contribution would be in the form of cash or immovable property and would be required following loan approval. The following are the conditions:
For a New Business
For tier 1 debt equity – 90:10 with a 3% markup
For tier 2 debt equity -80:20 with a 4 % markup
For tier 3 debt equity -80:20 with a 5% markup
For an Existing Business
No debt equity for any of the three tiers. This program is highly focused on female borrowers because 25% of loans will go to the women entrepreneur for starting their business.
Risk Mitigation
On the disbursed portfolio of the banks, Government will bear credit losses (just the principal amount) which are as under:
Upto 50% for Tier-1 loans
Upto 20% for Tier-2 loans
Upto 10% for Tier-3 loans
Products and Sectors
Besides agricultural, all products and sectors are included.
Banks providing loans
Following banks are participating in this scheme to provide loans for young sector of the country:
- Allied Bank Limited
- Albaraka Bank Limited
- Askari Bank Limited
- Bank Al Falah
- Soneri Bank Limited
- Dubai Islamic Bank Limited
- Faysal Bank Limited
- First Woman Bank Limited
- Habib Bank Limited
- Bank Al Habib
- BankIslami Pakistan Limited
- Bank of Khyber
- Bank of Punjab
- Habib Metropolitan Bank Limited
- JS Bank Limited
- MCB Bank Limited
- Meezan Bank Limited
- MCB Islamic Bank Limited
- National Bank of Pakistan
- Sindh Bank Limited
- United Bank Limited
Online Apply
If you are eligible and want to apply for a loan after learning about all the benefits of the Kamyab Jawan program, the procedure for prime minister youth loan scheme registration is following:
- No physical applications are permitted.
- Visit the Kamyab Jawan Program’s official website for prime minister youth loan scheme form free download
https://kamyabjawan.gov.pk/home/yesprogram
- Go to the Youth Entrepreneurship Scheme (YES) option on the home page.
- After that, go to the loan application page and fill out the form online.
- A new window will open with a form.
- Both English and Urdu versions of the application form are accessible. Both applications have minimal formats that contain only the most basic information.
- Fill in all the mandatory information in the form with care.
- After completing the first step form filling, move to the next steps and follow its instructions.
- Completing all the steps, then click the submit button.
While filling the form, keep in mind some points. Fill the form with the original CNIC and its accurate issuance date. Fill all the fields with care because it is essential. If you face some difficulties, visit the nearest branch participating in providing loans for guidance, or download citizen portal app. They will assist you and guide you that how to fill in the form. In addition, videos and manual are present at the official website, you can check it out too for guidance. But be careful, because once you fill the form it could be changed. However, you can withdraw the submitted application and apply for a new one.
The time required for processing these submitted applications is almost 25-30 days. The non-refundable form processing charge, which includes the NADRA online CNIC verification fee, would be Rs. 100/-. You can apply for new as well as for existing business too. If you have already applied for phase I, you can re-apply for phase II. This will give you an opportunity to avail of the increase in maximum loan size announced under phase II.
You can check your proposal status that whether it is approved or reject on the official website of this scheme. Besides, the bank will be also contact with you through the number that you provided at the time of form submission.
Document needed for application
Before apply you must have pictures, CNIC, Educational degrees, experiences certificate (if have), technical degree, license (if you haven’t and apply for license then upload the receipt), NTN, reference number of Electricity connection, salary income or agriculture income (any other source of income), vehicle registration number , Entity Existence documents this document is needed if you are planning for business with someone.
These are the documents require for start new business in case if you have already business and want to apply for loan to expand the current one then some extra documents is needed which are: Latest financials, recommendation letter from chamber, reference number of Electricity connection Installed at business address, Bank Account Statement.
After loan approved
Once the loan has been approved, and applicant is notified through SMS then the following steps are required to follow:
- Open bank account
- Deposited require amount (equity)
- Provide security according to the policy,
This article gives you an idea that whether you are eligible for applying prime minister youth loan scheme or not. What are the essential requirements are needed for the prime minister youth loan scheme registration? This all information you can get by reading this article.
