Prime Minister Youth Loan Scheme 2023 (PMYBL), Eligibility Requirements, Terms & Conditions & Online Application Form
Are you a Pakistani youth who is keen on establishing your own business? Do you have an innovative idea for starting a new business or want to take your existing business to the next level of success? If yes, then you are in luck because the Prime Minister of Pakistan has just announced the Prime Minister Loan Scheme 2023 (PMYBL).
Introduction to PM Shahbaz Sharif Loan Scheme 2023
Under this PM loan scheme, eligible candidates will be able to avail loans of up to Rs. 7.5 million Pakistani rupees with extremely concessional interest rates even the 1st tier is interest free. This Prime Minister youth loan scheme 2023 is aimed towards encouraging entrepreneurship & creating more employment opportunities among the youth of Pakistan in the private sector. Pakistan is facing a serious financial crisis and in-spite of such a drastic economic situation PML-N has decided to give easy loans to youngsters of Pakistan.
Eligibility Requirements For Prime Minister Youth Loan Scheme 2023
So, if you are a youth & have an innovative idea that you want to implement or expand your existing small business, now is the right time to take the right decision. Apply now for taking advantage of the Prime Minister Shahbaz Sharif loan scheme 2023. However, it is important to keep in mind that there are certain eligibility criteria that you have to fulfill in order to qualify for this youth loan scheme 2023. In this blog post of dailydonnews.com, we shall discuss the eligibility criteria for the Prime Minister loan scheme 2023 which you must meet in order to avail the loan as well as all other important aspects of this scheme in detail.
All About Prime Minister Loan Scheme 2023, Terms & Conditions, Online Form
In order to be eligible for the loan, you must be a Pakistani citizen holding a valid CNIC & aged between 21 and 45 years. It is pertinent to mention here that the age limit does not apply to computer science /E-Commerce related businesses, wherein the lower age limit is 18 years & a minimum education of SSC level or equivalent is required.
3 Tiers of Prime Minister Loan Scheme 2023
The PM loan scheme 2023 provides loans at 3 different tiers, each with an associated loan limit.
Tier 1 or T-1 loans are eligible to those who require up to 0.5 million Pakistani rupees. This loan limit is applicable to those who may just be starting their business & need assistance to kick-start their venture with limited financing of 500000 rupees. This assistance can help get their business off the ground & open up new opportunities for growth. This tier is interest free, yes i am speaking the truth as you will not have pay any kind of markup at all.
Tier 2 or T-2 loans offer a loan limit of 0.5 to 1.5 million Pakistani rupees. This medium type loan limit is intended for those with existing businesses & those looking to expand their business for the purpose of further growth. For existing businesses, it helps them to stay afloat and create new employment opportunities. For those looking to expand their businesses, it enables them to start new projects & undertake larger ventures to increase their turnover.
Tier 3 or T-3 loans offer a loan limit of 1.5 million to 7.5 million Pak rupees. This loan limit is intended for those looking to take their business to the next level. It aims to provide assistance in the form of innovative ideas, products & services. With this extended loan limit, one hopes to get the edge needed to stay ahead of competition & help their business reach the goals they have set.
Repayment Timeline of Shahbaz Sharif Loan Scheme 2023
Loans under Prime Minister youth loan scheme 2023 are being disbursed across the three tiers, T1, T2 and T3. This loan PM program is both a viable source of relief for citizens, for various businesses & a boost to the country’s economy. Here is what you need to know about the tenor or repayment timeline of each tier & other related information about the Shahbaz Sharif loan scheme 2023.
The tenor of loans disbursed under T1 (Tier 1) amounts to three years, meaning it has a 3-year repayment timeline. For crop loans, however, the tenors are shorter, at one year.
T2 & T3 Loans
The tenor for loans disbursed under T-2 (Tier 2) & T-3 (Tier 3) amounts to 8 years, including the 1-year autonomous grace period. This is slightly more than double the tenor of T1 interest free loans.
Key Points of Prime Minister Youth Loan Scheme 2023
1-You will have to repay the loan amount and its interest in monthly but equal installments. –
2-A person can avail 2 loans, at maximum ie 1 long-term & 1 short-term loan. Moreover, for agricultural loans, farmers may avail both production & development loans within the maximum financing limit of Rs 7.5 million.
3-It has been decided that the total processing time for any loan application will not exceed 45 days.
4-Just 100 Pak rupees will be charged from each applicant as processing & CNIC verification fee.
5-No security deposit is required at all for the T-1 & T-2 loans, as they will be disbursed on the basis of a personal guarantee provided by the borrower hisself. For 3rd tier loans, however, the banks will require some form of security as per their current policies.
6-For more insight & clarity, it is recommend to go through the PMYP portal (https://pmyp.gov.pk or state bank of Pakistan’s portal i.e https://www.sbp.org.pk/smefd/circulars/2022/C12.htm). This will help you better understand the details of Prime Minister loan scheme 2023 & the related protocols and procedures.
Debt to Equity Ratio & Interest Rate of Prime Minister Loan Scheme 2023
Prime Minister youth loan scheme 2023 allows the borrower to take out a loan with different debt to equity ratio, markup rate & equity contribution based on the tier they are in. Here’s a breakdown of the Tiers:
Tier 1 & Tier 2: Those who apply for this tier require a debt to equity ratio of 90:10 & they must provide a contribution of equity in the form of cash after the loan has been approved. Immovable property is also accepted as your contribution. The Mark-up rate is zero percent for tier one and five percent for tier 2.
Tier 3: This tier requires a debt to equity ratio of 80:20 & the contribution of equity in the form of cash or immovable property after the loan has been approved. The Mark-up rate is seven percent and remember that bank interest rate in Pakistan at present is more than sixteen percent.
Existing Businesses: There is no requirement for existing businesses to provide any debt to equity ratio or equity contribution, irrespective of what tier they are in.
Guarantee Needed for PMYP Loan Scheme 2023
The PMYBL has three tiers to help business owners choose the right loan for them. Tier 1 is the clean loan, secured only by the personal guarantee of the applicant borrower. Working capital loans, murabaha & leasing/financing of machinery & locally-manufactured vehicles for commercial use are eligible for financing under this tier. For agricultural, production & development loans, up to 65% of total financing limits can be availed.
Tier 2 is also a clean loan, secured only by the personal guarantee of the borrower. The rules & regulations of the SECP & SBP must also be followed by MFBs/MFIs if financing under this tier. Any vehicles financed under Tiers 1, 2 & 3 serve as collateral for the loan. Tier 3 is the loan tier as per banks’ policy.
Sectors of PMYBL
At the Prime Minister Loan Scheme 2023, SBP has tailored solutions to help meet the unique needs of each borrower and sectors. Whether you are a farmer, food franchise & distribution business, a retailer, a medium size manufacturer, an exporter or a start-up, PMYBL has the solution for you.
So this was all about the the Prime Minister Youth Loan Scheme 2023. In order to avail the loan, it is important to make sure that you meet all the conditions mentioned in this blog & SBP portal. With that being said, we hope you found this blog of dailydonnews.com useful & will now keep the details in mind before applying for the Prime Minister Loan Scheme 2023. Good luck!