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The Prime Minister’s Loan Scheme

The PRIME MINISTER LOAN SCHEME has recently been relaunched. It is now called PMYB&ALS, and it provides interest-free loans to women entrepreneurs. This loan scheme has been relaunched on the basis of non-political and merit based criteria.

Interest-free loans
In his latest round of economic stimulus packages, Prime Minister Khan rolled out a suite of initiatives to improve the dwindling standard of living of the average Pakistani. These include an interest-free loan scheme, the largest ever ‘big data’ database, and a plethora of schemes aimed at boosting youth engagement and bolstering the financial security of the middle class. The latter is especially important in light of Pakistan’s poor economic performance in recent times.

It’s no secret that a large number of the Pakistani population live in districts where access to basic financial services is difficult to come by. A micro loan may be the most important single investment a low-income household can make in order to start, maintain or expand their enterprises.

Markup rates
The government of Pakistan has announced a markup rate reduction scheme for affordable housing finance. It is aimed at helping first-time home buyers gain access to bank’s financing at subsidized rates.

There are three main components to the scheme. One is the Markup Waiver Scheme (MWS), which is targeted at the subsistence farmers and borrowers with outstanding balances of Rs. 500,000 or less.

In addition, there is a Markup Subsidy Scheme (MSS) aimed at the revival of agriculture and livestock sectors. A total of 33 billion rupees was allocated for the scheme.

To sweeten the deal, the government has also introduced a couple of incentives. First, banks will reschedule the principal loan for up to one year in calamity prone areas. Second, they will also extend the repayment period of the debt by at least a year. This, in turn, will reduce the monthly installments by at least a few bucks.

Women entrepreneurs
The Government of India has introduced various schemes for women entrepreneurs. These loans are aimed at encouraging women’s entrepreneurship, helping them create self-employed opportunities, and helping them become financially independent.

In order to qualify for the Women Entrepreneurship Scheme, applicants must have at least 50 percent equity ownership in the business. Additionally, they must have a valid ID and address proof. They must also submit their last three years’ income tax returns.

For a loan under the women’s entrepreneur loan scheme, applicants can apply for a loan for trading, manufacturing, or services. However, retail trade is not eligible.

To promote women’s entrepreneurship, the government has partnered with industry, academia, and government entities. Women entrepreneurs can obtain loans of up to Rs. 1 crore.

Relaunched PMKJ-YES
PMKJ-YES, Prime Minister’s Kamyab Jawan Youth Entrepreneurship Scheme, is a program designed to facilitate self-employment opportunities for youth. This program is aimed at empowering the youth by providing affordable financing to SME businesses.

It provides subsidized business and agriculture loans to youth. The loan scheme also includes interest-free microloans to borrowers. All individuals with CNIC can apply for the loan.

There are three different loan schemes available. The first scheme offers loans to entrepreneurs for small enterprises. These loans range from Rs 100,000 to Rs 25 million. Those who wish to obtain a business loan should submit an application form online through a centralized platform.

For long-term development and working capital loans, the duration of financing is up to eight years. A grace period of one year will be given to borrowers. The repayment will be divided into equal monthly instalments.

Renamed PMYB&ALS
The Prime Minister’s Youth Business and Agriculture Loan Scheme (PMYB&ALS) is a business loan program aimed at promoting entrepreneurship among Pakistan’s youth. Basically, the scheme provides loans on simple terms. Borrowers can apply for the same by visiting the PMYB&ALS website. This programme has a centralized platform hosted by the National Information Technology Board and is only accessible to authorized stakeholders.

Similarly, the PMYB&ALS has an array of microloans that cover the gamut of agriculture and small businesses. These include crop loans, livestock loans, microloans, and interest free microloans. In addition, the program also offers a crop insurance scheme for the more affluent.

There is no denying that the PMYB&ALS is a worthwhile initiative. It provides business loans to eligible applicants through fifteen banks. As per the PMYB&ALS website, these loans can be availed by borrowers in food franchises, agriculture and manufacturing sectors, as well as the likes of civil works and working capital loans.

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