Here you can find Kamyab Jawan Loan Program Complete Detail with Application Form. Kamyab Jawan program aims to provide loan schemes to young Pakistanis. According to Prime Minister Kamyab Jawan Loan SME Lending Program, young people can get loan to establish their business.
Kamyab Jawan Loan Program Complete Detail with Application Form
Although, in order to get loan, there are certain terms & conditions. But, it ensures to provide benefits to all the young, energetic & best planner Pakistanis. Furthermore, Kamyab Jawan Loan Program is only for small & medium-sized enterprises (SMEs).
Why Only SMEs? Small & medium size enterprises stimulate economic growth by providing employment opportunities, fostering innovation & reducing income inequalities. Lack of adequate financing facilities from formal sources is one of the key challenges faced by the small enterprises & youth entrepreneurs.
Eligibility Criteria for Kamyab Jawan Loan Program
- All men / women holding CNIC, aged between 21 and 45 years with entrepreneurial potential are eligible. For IT / E-Commerce related businesses, the lower age limit will be 18 years.
- Small enterprises (startups & existing businesses) as per definition of SBP & owned by youth as per above mentioned age brackets are also eligible.
- For IT / E-Commerce related businesses, at least matriculation &/or experience of at least six months.
Kamyab Jawan Program Complete Detail in Urdu. Don’t miss to watch video at the end of this page.
Important Terms & Conditions of Kamyab Jawan Loan Program
How to Apply for Kamyab Jawan Loan Program
- Application forms will be available soon on all those banks websites, who will issue loans under this scheme. You can also download application form for Kamyab Jawan Loan Program at the end of this page. (Jump to download application form)
- Completely fill application form with correct information
- Create a feasibility report for your business or download from SMEDA accepted feasibility report & make changes if necessary.
- Submit your filled application & business feasibility report in concerned bank.
What is Loan Limit? Government of Pakistan shall provide mark-up & credit loss subsidy on small business loans in the range of 100,000 to Rs. 5,000,000۔
Loan size: Size of the loan is segregated into two tiers, as under:
- Tier 1 (T1) loans- Rs 100,000 to Rs. 0.5 million
- Tier 2 (T2) loans- Above Rs 0.5 million and upto Rs 5 million
Loan Type: Working Capital Loans & Term Loans
Kamyab Jawan Loan Tenor upto 8 years with maximum grace period of upto one year
Loan Tenor: Upto 8 years with maximum grace period of upto one year.
Debt to Equity Ratio: The borrower’s contribution of equity would be in the form of cash or immovable property and will be required after approval of the loan. Debt to Equity Ratio is as under;
- T1 loans- 90:10
- T2 loans- 80: 20
Security Requirements: Security arrangements will be as under:
- T1 loans: Clean, however, only personal guarantee of the borrower
- T2 loans: As per bank’s own credit policy
Risk Mitigation: Government will bear credit losses (principal portion only) on the disbursed portfolio of the banks as under:
- T1 loans: Upto 50%
- T2 loans: Upto 10%
Pricing: Pricing for Working Capital & Term Loans;
- T1 loans: 6% p.a. fixed for borrower. Government will pay the difference of the cost at KIBOR+500bps
- T2 loans: 8% p.a. fixed for borrower. Government will pay the difference of the cost at KIBOR+400bps
Allocation in Budget: Finance Division shall allocate funds in each fiscal year’s budget as per estimates provided by SBP. Payment will be made on submission of consolidated claims of all the banks by the SBP.
Executing Agency: In the first instance, National Bank of Pakistan (NBP), Bank of Punjab and Bank of Khyber will execute the program under the guidance and supervision of State Bank of Pakistan. Subsequently, SBP will also advise other commercial banks for participation in the program.
NBP will continue to play the lead role. NBP’s share in total disbursed loans will be upto 50%.
25% of the loans will go to women borrowers.
Focus on Women: 25% of the loans will go to women borrowers.
Sectors & Products: All sectors. Standardized schemes/ projects/ undertakings designed by SMEDA, or projects designed by private sector service providers or by individuals, themselves will also be admissible.
State Bank of Pakistan (SBP) will publish consolidated information about the loans extended under this program for information of the public on quarterly basis on its website. Whole of Pakistan is geographical distribution. In case of Balochistan, at least one branch of NBP will be designated per Division. All non-designated NBP branches will also provide and receive filled application forms and dispatch them to the nearest branches.
Additional Measures: Executing Agencies (EAs) under this program should ensure following additional measures:
- Criteria for assessing entrepreneurial potential should be developed and implemented.
- In case of loans for existing businesses, a robust independent verification mechanism may be introduced to ensure proper utilization of the loans. Further, for new businesses, a robust mechanism for ongoing monitoring of the loans’ utilization should be developed and implemented
- A mechanism must be introduced to ensure that the prescribed debt equity ratio has been maintained. Before disbursement of the loans, it should be ensured that the equity is deposited in the bank from the borrower’s own sources where the equity mechanism is in the form of cash.
The banks are advised to gear up their systems for successful implementation of this program and to avoid any misuse of the program.
The banks are also advised that with the launch of Prime Minister’s Kamyab SME Lending Program, Prime Minister’s Youth Business Loan (PMYBL) scheme would cease to exist.
Kamyab Jawan Program Complete Detail in Urdu Video
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