Kamyab Jawan Loan Scheme

Prime Minister’s Kamyab jawan Youth Entrepreneurship scheme (PMKJ – YES) | Kamyab Jawan Loan Scheme

 

The government of Pakistan has launched prime Minstier’s Kamyab - jawan Youth Entrepreneurship scheme (PMKJ – YES) under SME Lending program across the country to provides self-employment opportunities to youth of the country.

It is imperative to note the SME sector has remained a focus area of SBP for past many years, the sector contributes significantly towards national GDP, employment generation and export earnings.

Initially, SBP selected the platforms of government owned banks i.e. NBP, BOK & BOP to run the scheme, later on realizing the voluminous impact of number of applications, SBP extended the reach to 21 commercial banks.

In this regard a dedicated PMKJ. Wing has been established under SME Division and a detailed product program manual has been approved for loan processing and disbursement.

 

Product Features:

Application Forms:

Applications are being logged in through PMKJ web portal of “Prime Minister’s Kamyab Jawan Program” only though the following link.

https://kamyabjawan.gov.pk/bankform/newapplicantform

(Application form is available in both Urdu and English languages)

 

Applications are ONLY accepted online; no hard copies are to be submitted.

 

Loan Size and Pricing

The scheme has been bifurcated in the following three Tiers: -

	Amount	Pricing
		End user	Bank
Tier 1	PKR 0.1M TO PKR 1.0M	3%	12MK+400BPS
Tier 2	Above PKR 1.0M TO PKR 10.0M	4%	12MK+400BPS
Tier 3	Above PKR 10.0M TO PKR 25M	5%	12MK+400BPS

 

 

Debt: Equity Ratio

	Tiers	Equity type
For new businesses	Tiers 1   90:10 Tiers 2 & Tiers 3    80:20	The borrowers contribution of equity would be in the form of cash of immovable property and will be required after approval of loan
For existing businesses	Nil for all tiers

 

 

Prime Minister’s Kamyab jawan Youth Entrepreneurship scheme (PMKJ – YES)

Tenure/Grace period

Maximum tenure is up to 8 years with maximum grace period of up to one year.

 

Loan type

Long term loan/working capital loan and leasing/financing of locally manufactured vehicles for commercial use only one vehicle per borrower is allowed.

 

Purpose of Loan

1.       New business

2.       Expansion of business

 

Loan Processing Time

Applications will be processed within 30 days after receipt from the portal (if all required documents attached with applications)

 

Processing fee

Rs. 100/- (One hundred only), however other charges i.e. evaluation, legal opinion (if required) will also be borne by applicant.

 

Sector and products

All products for conventional lending under SE/ME sector.

 

Eligibility Criteria for Loan Calculator

1.      All individuals holding CNIC, aged between 21 and 45 years with entrepreneurial potential are eligible. For IT/E- Commerce related businesses, the lower age limit will be 18 years.

2.       Above age limit condition is applicable on individual and sole proprictors, in case of all other forms of business including partnership and companies, only one of the owners, partners or directors is required to be in the above prescribed age bracket.

 

Non Eligibility for Loan Calculator

1.       Government employees are not allowed to avail finance under this scheme.

2.       Debt swap of outstanding credit facilities of existing customer is not permissible under PMKJ-YES.

3.       Debt swap of outstanding credit facilities of other banks’ customer is not allowed under PMKJ-YES.

4.       Running finance facility is not allowed under the scheme, hence, rollover. Renewal of working capital loans is allowed subject to observance of terms and conditions.

5.       Non-funded facilities do not fall under the purview of PMKJ-YES.

6.       A person being borrower under PMKJ-YES cannot become guarantor for loan to other persons under the scheme

 

Focus on Women

25% of the loans will go to women borrower

 

Security:

T1 Loans:

Clean; however only personal guarantee of the borrower.

T2 & T3 Loans:

As per banks existing credit policy for SE/ME financing up to Rs. 3.00M will be allowed against security of self-owned vehicle by applicant (with 30% margin on FSV of vehicle)

Vehicle financed under T1, T2 and T3 to serve as collateral

 

Risk Mitigation

Government will bear credit losses (principal portion only) on the disbursed portfolio of the banks as under

Tier 1 Loan  upto 50%

Tier 2 Loan  upto 20%

Tier 3 Loan  upto 10%

 

Repayment

Repayment of PMKJ loan will be made in form of “Equal Monthly installments” as per tenure requested by applicant.

In case applicant is allowed grace period (which is maximum one year), only markup will be recovered during grace period, however equal monthly installment will become due after grace period.

 

Documentation required from Applicant

Following minimum documents will be received from PM portal, attached with application: -

1.       CNIC (already verified by NADRA)

2.       Photograph

3.       Feasibility report of business (in case of new business

4.       Annual financial reports (in case of existing business)

5.       Educational certificates

6.       Experience letters (if employed)

7.       Bank statements (last 06 months)

8.       Security documentation (in case of Tier 2 & 3)

9.       Tax return (if tax payer)

10.   NTN certificate

11.   Any other document required time to time.

 

Processing / Approval of Loans

Tier 1 loans will be processed at PMKJ-Wing (established under SME division) and will be approved jointly by PMKJ wing Head and SCO-RMG.

Tier 2 and 3 loans will be processed according to the existing SME structure and will be approved by Regional credit committees (in case of north region, SCO)

 

SBP Prudential Regulations

The scheme is principally governed by SBP prudential regulations as per type of loan i.e. SME and banks shall adhere to all applicable requirements of PRs.

Approved product program manual (PPM) has been uploaded on banks intranet for detailed knowledge and guidance on the product of PMKJ-YES.