The Young Business and Agricultural Loan Schemes were introduced by Prime Minister Shehbaz Sharif on Tuesday in Islamabad with the intention of encouraging youth entrepreneurship and self-employment.
The lending facility under the programmes is available to individuals between the ages of 21 and 45. The minimum age requirement for IT and e-commerce companies is 18 years old.
The loan “schemes are aimed at making the youth self-reliant,” added Premier Shehbaz.
The detailed instructions for applying for loans are as follows:
The inclusion of agricultural loans will assist rural youth in bringing innovation to farming, including mechanised farming, the development of agricultural value chains, and the solarization of farming equipment to create more sustainable energy resource management in a country like Pakistan with a challenging climate.
Small company loans for microfinance would encourage the norm of job creation rather than job seeking among the nation’s youth bulge.
On the loan programme, you can also use Islamic banking services.
There is a 25% quota set out for women.
The prime minister further stated that under the programmes, loans up to Rs. 1.5 million can be obtained with the borrower’s personal guarantee.
“There will be no interest rate on the loan of up to Rs0.5 million. 5% interest will be charged on the loan of over Rs0.5 million to 1.5 million,” he said, adding, “7% interest rate will be charged on the loan of over Rs1.5 million to Rs7.5 million.”
Speaking on the occasion, State Bank of Pakistan (SBP) Governor Jameel Ahmad said that “special instructions had been issued to the banks for issuing loans to the youth”.
Provision of loans to the “agriculture sector is the top priority” of the government and the central bank, he added. The SBP governor said that every possible assistance would be provided to farmers in flood-hit areas. “The limit of agricultural loans has been increased by 44%.”
He urged all institutions to play a positive role in connection with the youth loan scheme.