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Prime Minister’s Youth Business and Agriculture Financing SchemePrime Minister’s Youth Business and Agriculture Financing Scheme

Prime Minister’s Youth Business and Agriculture Financing Scheme

In order to provide self-employment opportunities to unemployed youth, Government of Pakistan had launched phase three of ‘Prime Minister’s Youth Business and Agriculture Financing scheme’ through SBP circular issued IH&SMEFD Circular No. 12 Dec 12, 2022. Earlier ‘Prime Minister’s Youth Business Loan’ as SME Financing Program across the country initially launched in Jul-2019, which was later renamed as Prime Minister’s Kamyab Jawan Youth Entrepreneurship Scheme (PMKJ-YES) in Jul-2020. Bank Alfalah has been nominated as Participating Bank in Phase-3 launched on 12-Dec-2022. 

Eligibility

  • All citizens of Pakistan holding CNIC, applicant’s aged between 21 and 45 years for individual/sole proprietor or any one of the stakeholders with entrepreneurial potential.
  • Small and medium enterprises (startups and existing businesses) as per definition of SME PR’s  and owned by youth as per above–mentioned age brackets are also eligible.
  • For IT/E-Commerce related businesses, applicant’s aged between 18 and 45 years exclusively and at least matriculation or equivalent education will be required.

Financing Structure

– Working Capital financing Including Musawamah, Istisna and long term financing including Diminishing Musharakah (DM) (for machinery/equipment and locally manufactured vehicles (one vehicle* per customer)

*If Customer is in food franchise and distribution business may avail financing for more than one vehicle.

Tier Limit Caps (PKR) Pricing Financing/Equity Participation 
Tier 1 (T1)* Up to 0.5M  0% p.a New Businesses: 90:10

Existing Businesses: Nil

Tier 2 (T2) From 0.5M to 1.5M 5.00% p.a
Tier 3 (T3) From 1.5M to 7.5M 7.00% p.a New Businesses: 80:20

Existing Businesses: Nil

*The financing applications processing and disbursement under T1 will only be made through Microfinance Banks/Micro Finance Institutions to be selected by the respective wholesale Financiers. 

Financing tenor

  • Up to 8 years with maximum grace period of up to 1 year.

Security Requirements

Security arrangements will be as under:

  • T1 financing; Clean; however only personal guarantee of the customer.
  • T2 financing; Clean; however only personal guarantee of the customer.
  • T3 Financing: As per Bank’s own credit policy.
  • Vehicle financed under TI, T2 and T3 to serve as collateral.

Gender Equality

  • 25% of the financings will go to women customer.

Target Market (Geography/Sectors)

  • All business segments/sectors spread across Pakistan, including Agriculture sector.

Application Process

Apply through PMYB&ALS Online Portal ( www.pmyp.gov.pk ) with an application processing TAT of 45 days.