PM’s Small Business Loans Scheme
Brief description Small business loans scheme will focus on unemployed youth, especially educated, looking for
establishing new enterprises.
Eligibility criteria All young men/women. Age not more than 35 Years. Entrepreneurial potential.
Focus on women 50% of loans will go to women borrowers.
Debt-Equity ratio 90:10 with tenor of up to 7 years
Pricing 8% fixed for borrower but government will pay the difference of the cost at KIBOR+500 bps.
Refinancing SBP to explore providing 50% refinance at the risk of participating banks
Risk mitigation Government will share 50% of losses subject to a maximum of 10% of the loan amount
Number of Loans 100,000
Size of Loan Rs. 0.5 – 2.0 Million
Average Loan Size Rs. 1.25 Million
Allocation in Budget
2013-14
Rs. 5 billion
Executing agency NBP and First Women Bank under the guidance and supervision of SBP. Other Banks will be
encouraged to join.
Sectors and Products All sectors. Standardized schemes/projects/ undertakings will be designed by SMEDA, projects
designed by private sector service provider or individuals themselves.
Age Limit 21-35 Years
Domicile Punjab, Gigit Baltistan, FATA, Azad Jammu and Kashmir, North Punjab entire Balochistan, less
developed areas of KP (Malakand, Kohistan and DI Khan).
Gender Both Males and Females can apply for the scheme.