Prime Minister’s ‘Kamyab Jawan – Youth Entrepreneurship Scheme’, for young entrepreneurs between the age group of 21 – 45 years, is designed to provide subsidized financing through the National Bank of Pakistan, Bank of Punjab and Bank of Khyber under the guidance and supervision of the State Bank of Pakistan.
The loans will be disbursed to SME beneficiaries across Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan, Gilgit Baltistan and Azad Jammu & Kashmir. The Program aims to provide 25% of the loans to women entrepreneurs.
Loans provided through Kamyab Jawan Program are segregated in two tiers: Tier 1 loans fall in the range of Rs. 100,000 to Rs. 500,000, with Debt:Equity 90:10 and 6% markup to borrower, and, Tier 2 loans are from Rs. 500,000 to Rs. 5,000,000, with Debt:Equity 80:20 and 8% markup to borrower. Both loans are for a period of upto 8 years with a grace period of 1 year.
SMEDA has been tasked with an advisory role in the implementation of PM’s scheme.
Criteria & Eligibility
A .Loans provided through the Program are segregated in two tiers:
Tier 1 loans fall in the range of Rs. 100,000 to Rs. 500,000
Tier 2 loans fall in the range of Rs. 500,000 to Rs. 5,000,000.
B. Mark up for Working Capital & Term Loans:
Tier 1 loans: 6% per annum fixed for borrower.
Tier 2 loans: 8% per annum fixed for borrower.
C. Tenure of loans
Upto 8 years, with maximum a grace period of upto one year.
D. Security Requirements will be as follows:
For Tier 1 loans only personal guarantee of the borrower is required
Security requirements for Tier 2 loans will be as per bank’s own credit policy
E. Applicants contribution
For Tier 1 loans applicant will contribute 10% equity with 90% financing through bank loan.
For Tier 2 loans applicant will contribute 20% equity and 80% financing through bank loan.
F. Eligible sectors
All sectors are eligible
G. Age Limit
For Tier 1 and Tier 2 Loans, Age Limit is 21-45 years at the time of form submission. In case of IT or Computer related businesses, minimum age limit is reduced to 18 years.
H. Application form
Loan Application Forms will be available at branches of participating banks, whereas soft copies of application form can be downloaded from the following websites:
1 Kamyab Jawan Program: kamyabjawan.gov.pk.
2.National Bank of Pakistan: nbp.com.pk
3.Bank of Punjab: bop.com.pk
4.Bank of Khyber: bok.com.pk