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.
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.