Nawaz Sharif Youth Loan Scheme First balloting on 28-2-2014
Islamabad (Thursday, Februaty 27, 2014) – Banks have so far received over 35,000 applications for Prime Minister’s Youth Business Loan Scheme (YBLS), and the first balloting is scheduled for February 28, 2014 in Islamabad.
Sources told Business Recorder on Wednesday that Prime Minister Nawaz Sharif is likely to be the chief guest of the balloting ceremony. A special secretariat has been set up for the loan scheme.
In the first phase, National Bank of Pakistan (NBP) and First Women Bank Limited (FWBL) are acting as executing agency under the supervision of the State Bank of Pakistan (SBP).
Both banks are actively participating in the scheme and making efforts to make this scheme successful. Over 35,000 applications have been received by both banks. Majority of applications have been collected by NBP, having a large network across the country.
Sources said NBP has received some 35,000 applications through its 1,341 branches. Although the federal government has announced to allocate 50 percent amount of YBLS to women entrepreneur, there is very poor response from women as FWBL has received only 227 applications through its 41 branches.
The government is also likely to review the women quota to address the requirement of other sectors/provinces as the current number of forms did not fulfil the allotted women quota of 50 percent.
They said after completing all necessary requirements and verifications, NBP has approved some 4500-5000 applications, while First Women bank has approved some 60 applications. All approved applications have been selected for loan disbursement through a transparent balloting process, which will be held on Friday, Feb 28, in Islamabad.
All the approved applications will be sent to the PM Youth Loan Scheme Secretariat for balloting, after which both banks will disburse the approved amount among those applicants, which will be selected through balloting, sources said.
They said that loan will be disbursed as per provincial quota and vacant positions of any province will be carried forward to the next quarter instead of re-allotting to other province.
Under the loan scheme, unemployed citizens of Pakistan youth group would be given Rs100,000 to Rs2,000,000 for initiating their own businesses.
Sources said during the recent visit of Karachi, Finance Minister Ishaq Dar reviewed the scheme in a meeting at the State Bank head office and asked NBP and FWBL officials to finalise the processing of application by Feb-end.
“First Women Bank has also started a special youth loan awareness programme under which women entrepreneurs are being encouraged to apply for the loan. So far, First Women Bank has conducted some 5 awareness programmes in Karachi and Lahore to motivate women for the loan scheme,” they added.
The federal government has allocated some Rs 5 billion in the budget 2013-14 for YBLS and some 100,000 loans will be disbursed through this scheme. Small business loans will focus on unemployed youth (but will not be restricted) especially educated youth looking for establishing or extending business enterprises.
Under the scheme all men or women holding CNIC, aged between 21 and 45 years with entrepreneurial potential to apply for the loan. Debt-equity ratio has been set at 90:10 and the borrowers’ contribution of equity would be in the form of cash or immovable property and will be required after approval of the loan.