Category Archives: PM Loan Scheme

Prime Minister Business Loans | Pm Business Loans 2013-14

See details of Prime Minister Business Loans scheduled to be launched on December 2, 2013. In an honest effort towards exhorting the youth of the nation, Prime Minister of Pakistan has announced the salient features of the PM business loans. It was much awaited by the unemployed youth of Pakistan that is focused towards making their bread from this scheme. These loans provide young unemployed people of the nation with a golden opportunity to stabilize themselves as well as their families. The ultimate benefit will be in terms of contributions towards enhancing the economical growth of the country. This scheme will go a long way in reducing the unemployment rate in Pakistan and also mitigating the frustration that naturally comes being not able to earn money. See details of Prime Minister Business Loans scheduled to be launched on December 2, 2013, this article includes all aspects of Business Loans announced in PM Loan scheme.

Prime Minister Business Loans | Pm Business Loans 2013

The decision for launching this Prime Minister Business Loans was made during the meeting held in Prime Minister’s House on November 22, 2013. This meeting was chaired by Muhammad Nawaz Sharif and was dedicated to the issue of launching business loan scheme 2013/14. The meeting also covered the briefing of Prime Minister on the various phases, Banks’ processes, details, training of the Banks’ employees and training of loan applicants etc.

Prime Minister said that he will observe the complete transparency in the procedure of providing loans to deserving people. The administration will observe the merit and other requirements for giving loans. Half of the loans will be provided to women (especially educated ones) and 5% loans will be issued to widows, families of martyrs and disabled.

The biggest hindrance in the path of Prime Minister Business Loans is malpractice and corruption. It has been observed that such schemes failed badly in the past due to several reasons among which corruption is the most prominent factor. The Prime Minister announced that he will make sure that this scheme is free of any false measures. During the meeting, it was briefed that the stringent criteria will be placed for awarding the loans to deserving people to avoid any misuse. The Prime Minister took the sole responsibility of fare policies by owning this system.

It was decided in the meeting that private banks will also contribute towards making this scheme successful. They will go hand in hand with the Government sector in this regard.

The statistics showing the response of the people towards this scheme were shown in meeting and it was obvious that many people are taking serious interest in this scheme. Prefeasibility reports were made for helping the Entrepreneurs in making business plans and are available on website of Small and Medium Enterprises Business Development Authority (SMEDA). These reports have been downloaded in the great numbers reflecting the widespread popularity of the scheme.

Considering the basic aim of this scheme to make people self-sufficient as well as contribute towards the country’s economy, it was decided to offer loans on priority basis to business involving vital national interest areas like fish farming, cattle farming, jewelry and gems etc.

The meeting also agreed on the proposal of balloting each month and successful candidates will be awarded the loans. However, those who don’t pass the criteria may apply next month to try their luck again. In this way this cycle will take this scheme to high levels in coming months and years.

This scheme relaxed the borrowers for the first year after taking the loan. Prime Minster understands the financial consideration in establishing the business during the first year and then as the business flourishes, the revenues should start coming automatically. Subsequent years will require the borrowers to repay the loan with mark up of 8%.

To successfully initiate this scheme, some banks will be involved obviously. So bank staff should be trained for running this scheme satisfactorily. The staff will facilitate in loan processing throughout the country. They should behave politely with the candidates, well trained and courteous in nature. They are acting as an interface between public and Government. Hence, their role is extremely crucial in implementing transparent policies for this scheme. The bank who is leading this scheme is National Bank of Pakistan and it is supported by some private banks, First Women National Bank and SMEDA. NBP has been advised to organize workshops at regional and provincial levels to train Managers and branch managers of banks to facilitate the fast and efficient processing of loans. Strategies will be formulated to establish this system countrywide so that people of every region are equally benefitted from this scheme. Considering the experience of NBP in banking sector in Pakistan, their top management is likely to propose intelligent approach in facilitating the people as much as they can.

Minister Finance Mr. Muhammad Ishaq Dar, Governor State Bank Mr. Yaseen Anwar, Minister Information Senator Pervez Rashid, Political Secretary to the PM Dr. Asif Kirmani, senior officials of the Prime Minister’s Office, Officials from finance sector of SMEDA and First Women Bank attended the meeting.

The best thing about this scheme is free processing of applications. The applicants just have to fill the forms and apply via the registered banks for this scheme. It is under consideration that the branches of NBP in each region should have this facility of processing applications so that applications are not routed at one place only.

Business loans scheme will benefit a large number of people throughout the country. An initial estimate of 0.35 million is proposed for the number of loans. However, if the policy is successful the number of loans may be increased. The amount of loans will vary depending upon the criteria and financial conditions of the applicants.

Prime Minister Business Loans

Prime Minister Business Loans

Recently, Maryam Nawaz, the daughter of Prime Minister has been appointed as the chair person the six youth schemes that were announced by Prime Minster in his address. She will be guiding the administration of the respective schemes regarding the policies and application procedures. She has the motif that youth must realize and live their dreams. They have to support themselves, their family as well as contribute positively towards the betterment of the nation. She had been chairing the Sharif Trust earlier which was founded by her grandfather Muhammad Sharif, Sharif Medical City and Sharif Education Institute.

How to Apply for Business Loans 2013/2014

The setup for application procedure hasn’t been established yet properly and will be announced in the first week of December. The criteria for availing these loans are to have entrepreneurship background and age between 21 and 45. The applications will be processed via NBP or other banks depending upon the provision of rights to them by Government.

Prime Minister Loan Scheme 2013 | Small Business Loans | How to Apply for PM Loan Scheme

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.

Eligibility Criteria

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.

Interest Rate

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 Loans

Total 100,000 loans will be provided to talented young and educated people.

Executing Agencies

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.

 

 

Prime Minister Loans Scheme 2013 | How to apply for Prime Minister Loan Scheme 2013/14

See details of Prime Minister Loan scheme 2013, Mian Nawaz Sharif in his address to nation announced six schemes for the welfare of Pakistan Youth. PM Nawaz Sharif announced 20 billion rupees for the welfare of youth in his first speech. Main Shahbaz Sharif on Prime Minister’s initiative spoke to media and encouraged the decision of making youngsters active in the prosperity of Pakistan. Pakistan’s population’s major part is of Youth, and via providing those with the opportunities and resources of attaining higher education and technical trades for youngsters can make them active participants in national economy. Shahbaz Sharif further added that this decision of providing financial support to the youngsters and facilitating students is a historic initiative taken by Pakistan’s Prime Minister Mian Nawaz Sharif. The Chief Minister of Punjab Provence told media that development programs in the 4 advantaged districts has come with promising results. The Government of Pakistan is taking serious steps in making Pakistan a developed country and for the elimination of all critical issues in Pakistan including the Power Crises.

For details of prime Minister loan scheme 2013 please visit Prime Minister Youth Welfare Schemes. There are six schemes that are announced for the welfare of Pakistan youth including Micro Interest Free Loans, Small Business Loan Schemes, Youth Training Scheme, Youth Skill Development Scheme, Fee Payment for Under Privileged Areas, and PM Laptop scheme. Prime Minister Nawaz Sharif has announced the investment for the each of the schemes while the timeline of opening the program has not yet announced. In Prime Minister’s entire speech the main focus of him was on the students and unemployed youngsters and their welfare schemes. The government seems to be serious in benefiting Students and unemployed youth of Pakistan.

Ministry of Youth Affairs is also announcing loan schemes for providing financial assistance to the students. Shahid Hussain, Federal Minister of Youth Affairs said that International Labour Organization and Ministry of Youth are stepping into the betterment of youth and they will start erecting jobs in the country.

How to Apply for Prime Minister Loan Scheme

As mentioned above, PM in his speech has announced these schemes, but there is no timeline for the provisions of loans announced by him. So, how to apply for Prime Minister Loan Scheme will be updated with the opening of these loans, or with the announcement schedules for applying for these schemes.