Following are the Details about Small Business Loan Program
- Budget for financial year 2013-14:
Rs.5 billion have been allocated in the budget for the financial year 2013-2014.
- Number of Loans:
100,000 loans would be disbursed under the scheme.
- Size of Loan:
The amount of each loan can range from Rs.0.5 million to Rs 2.0 million.
- Average Loan Size:
The average loan size would be Rs.1.25 million.
- Sectors and Products:
The scheme encompasses all sectors of the economy. Standardized schemes/projects/ undertakings will be designed by SMEDA. Additionally, projects designed by private sector service providers and individuals are included in the scope of the scheme.
- Eligibility criteria:
An individual, male or female, of age not more than 35 years and has an entrepreneurial potential is eligible to apply for the scheme.
- Priority For Women:
Under the Prime Minister’s Business Loan Scheme, 50% loans have been allocated for women, especially the educated ones, and 5% quota has been reserved for widows, families of the Shaheeds and disabled.
- Pricing:
It is fixed at 8% for the borrower. However, the difference in the cost will be paid by the Federal Government at KIBOR+500 bps.
- Refinancing:
The State Bank of Pakistan shall 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.
- Debt-Equity ratio:
A 90:10 debt-equity ratio would be followed with tenor of up to 7 years.
- Executing agency:
In the initial phase of the scheme, the National Bank of Pakistan and First Women Bank would act as the executing agencies of the scheme under the guidance and supervision of the State Bank of Pakistan.Other Banks might Join.
Availability of Forms:
Forms will be available from December 2, 2013 in National Bank Of Pakistan
For more details Please visit Official site for this Program:
Or call on Toll Free Number: 080-077-000
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