Prime Minister Youth Business Loan (PMYBL)

The objective of product is to provide small business loans in shape of term loan having focus on (but will not be restricted to) unemployed youth, especially educated youth looking for establishing or extending business enterprise. The product is being initially launched in Karachi, Lahore, Rawalpindi and Islamabad.

Features Details
Eligibility Criteria All men/women holding CNIC, aged between 21 and 45 years
Loan size Minimum Rs. 200,000/- and maximum Rs. 2,000,000/-
Security Requirement Guarantor / Collateral1. Guarantor (s) must be

a. An individual having collective net worth of 1.5 times of required loan amount.
Note: Applicant can also provide guarantee of more than one guarantor (maximum 3) with aggregate net-worth of 1.5 times of the requested loan amount.

OR

b. A government employee of BPS-15 or above with minimum 8 years of remaining service at the time of providing the guarantee

2. Collateral
In lieu of 3rd Party Guarantee, Borrowers can also offer following securities:

a. Immovable Property (residential, commercial, industrial and agricultural) in their own name or in the name of 3rd party, valued atleast 1.5 times of the loan amount requested.

b. Pledge and/or Lien over bank deposits,certificates of deposits, gold ornaments and national saving securities.

Collateral Hypothecation over business/assets
Focus on women 50% of loans will go to women borrowers
Debt-Equity ratio D/E ratio will be 90:10
Loan Period Maximum up to 8 years, with one year grace period. Installments to be paid monthly, markup to be paid during grace period on monthly basis
Pricing As updated by SBP from time to time, currently 6% p.a
Application processing fee Rs.100/- to be recovered upon acceptance of complete set of application
Disbursement Disbursement will be made in tranches (minimum 2 tranches)
Sectors No restriction. However, the proposal must accompany feasibility report
Quota Cumulative quota of 5% for three categories, i.e. shaheed, widow and special persons on the basis of number of approved loans by the bank