See Prime Minister Loan Scheme 2013 details covering all the aspects of lending money via Prime Minister Loan Scheme for Small Business. Here you find the ways to put an effective application for establishing a small business. See Eligibility criteria, interest rate, returning policy, and amount of loan for Prime Minister Loan Scheme 2013. See a complete section of how to apply for PM loan Scheme 2013.
Small business loans scheme is one the six youth welfare schemes in Pakistan that Prime Minister (PM) Mr. Nawaz Sharif announced during his address to the nation. Small business loans are provided to young and educated people who are unable to get any suitable job after completing their education. This scheme provides them the wonderful opportunity to earn their bread with pride and honor.
PM announced amount of 20 billion rupees as Government financial support for unemployed in Pakistan of which 5 billion rupees are dedicated for small business loans. Young people with entrepreneurial skills will be benefitted a great deal from this scheme. They can now utilize their talents to improve overall economy of Pakistan and raise standards of living.
Equal Chances for Women
Half of the small business loans will be provided to women encouraging them to play their role in improving social and economical conditions of Pakistan. They can now utilize their unique talents in business for enhancing productivity and services.
The eligibility for loans for small business in Pakistan requires the candidate to have age not more than 35 years and has a vision to improve economical conditions of Pakistan.
Debt Equity Ratio
The debt equity ratio for small business loans is set as 90:10 which means that 10% of the share will be given by the borrower of the loan and rest of the 90% will be paid under the scheme.
The interest on small business loans is 8% while rest of the funding will be provided by the Government of Pakistan. These loans will be provided for the total tenure of 7 years.
Amount of Loan
The amount of loan will vary from 0.5 to 2 million Rupees.
Total 100,000 loans will be provided to talented young and educated people.
National Bank of Pakistan (NBP) and First Women Bank are authorized agencies to provide small business loans. The supervision will be provided by the State Bank of Pakistan (SBP). Other banks are also encouraged to join this scheme.
How to Apply for Small Business Loans?
The federal cabinet has approved the basic features of the small business loan schemes on September 13, 2013 and system for their implementation is under progress at the moment. To ensure more equity of rights and transparency, feedback from experienced people will be considered as opinion. A special mobile number “80028” has been assigned to receive the suggestions from general public regarding the scheme. Inputs could also be given on the official website of PM office. Mr. Nawaz Sharif also welcomed the written proposals regarding loan schemes address to PM office, Islamabad. He said that 10 days will be allocated to collect suggestions and recommendation. He added further that he wouldn’t be satisfied until he gets satisfactory response from youth of the nation. The schemes will be launched as soon as their plan is finalized and proper application procedure will be provided. You may regularly visit PM office official website for updates regarding loans for small business in Pakistan.