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.
