The 2024 Youth Business and Agriculture Loan Scheme, recently announced and praised by the Finance Minister, aims to empower the youth of Pakistan by providing financial assistance to start and grow their businesses. This initiative is part of the Prime Minister’s Youth Programme and is designed to foster entrepreneurship, particularly in the business and agriculture sectors.
2024 یوتھ بزنس اینڈ ایگریکلچر لون اسکیم، جس کا حال ہی میں اعلان کیا گیا اور وزیر خزانہ نے اس کی تعریف کی، اس کا مقصد پاکستان کے نوجوانوں کو اپنے کاروبار شروع کرنے اور بڑھانے کے لیے مالی مدد فراہم کرکے بااختیار بنانا ہے۔ یہ اقدام وزیر اعظم کے یوتھ پروگرام کا حصہ ہے اور اسے خاص طور پر کاروبار اور زراعت کے شعبوں میں انٹرپرینیورشپ کو فروغ دینے کے لیے ڈیزائن کیا گیا ہے۔
Contents
Key Features of the Loan Scheme:
- Eligibility Criteria:
- Age: Applicants must be between 21 and 45 years old. For IT and e-commerce related businesses, the lower age limit is 18 years.
- Citizenship: Only Pakistani citizens holding a valid CNIC are eligible.
- Business Types: Both new startups and existing businesses in the SME sector are eligible. For agriculture, the classification of farmers as per SBP’s guidelines will be applicable.
- Loan Tiers:
- Tier 1: Loans up to PKR 0.5 million with a 0% markup.
- Tier 2: Loans from PKR 0.5 million to PKR 1.5 million with a 5% markup.
- Tier 3: Loans from PKR 1.5 million to PKR 7.5 million with a 7% markup.
- Loan Terms:
- Loan Tenor: Up to 8 years for long-term loans with a maximum grace period of 1 year. Working capital loans have a tenor of up to 5 years.
- Debt-Equity Ratio: For new businesses, the ratio is 90:10 for Tier 2 and 80:20 for Tier 3. Existing businesses have no equity requirements.
- Security: Tier 2 loans are secured by the personal guarantee of the borrower. Tier 3 loans are secured as per the bank’s policy.
- Application Process:
- Applications must be submitted online through the PM Youth Portal.
- Processing time is 45 days from the date of application.
Impact and Benefits
The scheme is designed to create a conducive environment for young entrepreneurs, providing them with the necessary financial support to bring their business ideas to life. This initiative is expected to:
- Boost the economic landscape by creating new job opportunities.
- Encourage innovation and technological advancement, particularly in IT and agriculture sectors.
- Promote gender equality by reserving 25% of loans for women entrepreneurs.
Frequently Asked Questions (FAQs)
Can government employees apply for the loan?
No, government employees are not eligible for this scheme.
What is the minimum educational requirement?
There is no specific educational requirement, although relevant qualifications can be beneficial. For IT and e-commerce businesses, a minimum of matriculation is required.
How many loans can one borrower avail?
A borrower can avail a maximum of two loans, including one long-term and one short-term loan, within the overall limit of PKR 7.5 million.
Are there any geographical restrictions?
No, the scheme is available to all eligible citizens across Pakistan.
What are the fees and charges?
A processing fee of PKR 100 is applicable, with other charges at actuals.
Conclusion
The 2024 Youth Business and Agriculture Loan Scheme is a significant step towards empowering the youth of Pakistan, fostering entrepreneurship, and stimulating economic growth. With its favorable loan terms and extensive support, the scheme is expected to play a pivotal role in the development of the country’s business and agricultural sectors.