To facilitate youth to become entrepreneurs, Prime Minister Shehbaz Sharif on Tuesday launched Youth Business and Agricultural Loan Schemes in Islamabad.
The objective of the loan schemes is to promote self-employment and entrepreneurship among the youth.
People between 21 and 45 years of age can avail loan facility up to Rs 7.5 million under these schemes. For IT and e-commerce businesses, the minimum age limit is 18 years.
Micro-financing through small business loans will promote the habit of creating employment opportunities among the youth of the country instead of seeking employment.
The extension of agricultural credit will help rural youth to innovate in farming which may include mechanized farming, creation of agricultural value chains and solarization of farming equipment to make energy resources more sustainable in a climate-challenged country like Pakistan. Can be managed.
Under the schemes, loans of up to Rs 15 lakh can be availed on the personal guarantee of the borrower.
Live 🔴: Prime Minister Shehbaz Sharif attends inaugural ceremony of Prime Minister’s Youth Business & Agriculture Loan scheme.https://t.co/7ReOiKRpZn
— Government of Pakistan (@GovtofPakistan) January 24, 2023
According to the details, there will be no interest rate on loans up to Rs 50 lakh. A loan of 0.5 million to 1.5 million will be charged 5 percent interest. A loan of Rs 1.5 million to Rs 7.5 million will be charged an interest rate of 7 percent.
25% quota has been allocated for women. Islamic banking facilities can also be availed on loan scheme.
Speaking on the occasion, State Bank of Pakistan (SBP) Governor Jameel Ahmed praised the coalition government for launching the easy loan program for the youth. “Government remains committed to youth empowerment despite financial challenges.”
The governor added that special instructions have been issued to the banks to issue loans to the youth.
He added that “credit to the agricultural sector is the top priority of the government and the central bank”. The State Bank Governor said that all possible assistance will be provided to the farmers in the flood affected areas. Agricultural loan limit has been increased by 44%.
He urged all the institutions to play their positive role in connection with the Youth Loan Scheme.
