PM’s Small Business Loans Scheme
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[TD="width: 238, bgcolor: transparent"]Brief description[/TD]
[TD="width: 844, bgcolor: transparent"]Small business loans scheme will focus on unemployed youth, especially educated, looking for establishing new enterprises.[/TD]
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[TD="width: 238, bgcolor: transparent"]Eligibility criteria[/TD]
[TD="width: 844, bgcolor: transparent"]All young men/women. Age not more than 35 Years. Entrepreneurial potential.[/TD]
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[TD="width: 238, bgcolor: transparent"]Focus on women[/TD]
[TD="width: 844, bgcolor: transparent"]50% of loans will go to women borrowers.[/TD]
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[TD="width: 238, bgcolor: transparent"]Debt-Equity ratio[/TD]
[TD="width: 844, bgcolor: transparent"]90:10 with tenor of up to 7 years[/TD]
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[TD="width: 238, bgcolor: transparent"]Pricing[/TD]
[TD="width: 844, bgcolor: transparent"]8% fixed for borrower but government will pay the difference of the cost at KIBOR+500 bps.[/TD]
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[TD="width: 238, bgcolor: transparent"]Refinancing[/TD]
[TD="width: 844, bgcolor: transparent"]SBP to explore providing 50% refinance at the risk of participating banks[/TD]
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[TD="width: 238, bgcolor: transparent"]Risk mitigation[/TD]
[TD="width: 844, bgcolor: transparent"]Government will share 50% of losses subject to a maximum of 10% of the loan amount[/TD]
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[TD="width: 238, bgcolor: transparent"]Number of Loans[/TD]
[TD="width: 844, bgcolor: transparent"]100,000[/TD]
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[TD="width: 238, bgcolor: transparent"]Size of Loan[/TD]
[TD="width: 844, bgcolor: transparent"]Rs.0.5 – 2.0 Million[/TD]
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[TD="width: 238, bgcolor: transparent"]Average Loan Size[/TD]
[TD="width: 844, bgcolor: transparent"]Rs.1.25 Million[/TD]
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[TD="width: 238, bgcolor: transparent"]Allocation in Budget 2013-14[/TD]
[TD="width: 844, bgcolor: transparent"]Rs.5 billion[/TD]
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[TD="width: 238, bgcolor: transparent"]Executing agency[/TD]
[TD="width: 844, bgcolor: transparent"]NBP and First Women Bank under the guidance and supervision of SBP. Other Banks will be encouraged to join.[/TD]
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[TD="width: 238, bgcolor: transparent"]Sectors and Products[/TD]
[TD="width: 844, bgcolor: transparent"]All sectors. Standardized schemes/projects/ undertakings will be designed by SMEDA, projects designed by private sector service provider or individuals themselves[/TD]
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