Kamyab Jawan Youth Entrepreneurship Scheme KJYES 2019 Prime Minister Loan Scheme 2019

Prime Minister Imran Khan will launch this month the Youth Entrepreneurship Scheme to encourage entrepreneurship culture in the country. The beneficiaries of this scheme would be provided proper training along with subsidized loans to make them successful and thriving businessmen. It would help to create a maximum number of jobs through entrepreneurship development. The Youth Entrepreneurship Scheme is part of Kamyab Jawan Programme.

Prime Minister PM Kamyab Jawan Programme Scheme 2019

The Kamyab Jawan Programme includes different projects relating to education, skill training, entrepreneurship and civic engagement. Under the six flagship initiatives under the Kamyab Jawan programme, the ‘Youth Entrepreneurship Scheme’ will provide subsidised business loans to young aspiring entrepreneurs for the promotion of SME sector. The ‘Skill for All Programme’ will impart technical and vocational training to 150,000 youth, both in conventional and high-end technological trades. The ‘Startup Pakistan Programme’ will train potential young entrepreneurs to help them conceive, incubate, and mature their business plans through access to digital incubation platforms.

Prime Minister Loan Application Form 2019

The ‘Green Youth Movement’ will provide small grants to Pakistani youth to bring economic innovative solutions to tackle environmental and climate crises. The ‘Internship Programme’ will be for undergraduate and postgraduate students to facilitate them in active participation in the private sector. The ‘Jawan Markaz’, a one-stop solution for youth-related issues at the grassroots level, will not only provide access to sports and other youth engagement activities but also provide them with career counselling, mentoring and access to a host of digital services.

PMYAP renames SME scheme as ‘Kamyab Jawan Youth Entrepreneurship Scheme 2019’

 IH&SMEFD Circular Letter No. 6 of 2019

The Presidents/CEOs,
All Banks

Prime Minister’s Kamyab Jawan SME Lending Program

Dear Sir/Madam,

Please refer to IH&SMEFD Circular No. 08 dated July 11, 2019 on the captioned subject.

In this respect, Federal Cabinet has approved following changes in the above Program:

i. The scheme has been renamed as Prime Minister’s Kamyab Jawan Youth Entrepreneurship Scheme (YES).ii. For effective monitoring, online application form is prescribed through Kamyab Jawan Portal. The purpose of the portal is to provide a centralized platform through which applicants would be able to apply directly to the relevant banks. The portal will be hosted and controlled by National Information Technology Board, Ministry of IT and Telecommunication. Only authorized stakeholders for specific purposes will have an access to the portal e.g. individuals for the purpose of applying for loans; banks for the purpose of receiving applications; SMEDA for providing their hand-holding/guidance support wherever necessary and PM Youth Office for retrieving information for monitoring purpose. Moreover, external audit of the portal from expert IT auditors will be conducted on annual basis to ensure that online portal is used by the concerned stakeholders for intended purpose only and unauthorized use of the online portal, if any, is identified in a timely manner.iii. The processing time for banks has been increased from 15 days to 30 days.iv. Loan processing fee of Rs 100/- will be inclusive of NADRA online CNIC verification fee.Other instructions shall remain unchanged.

Encl: Annexure -1: Loan Application Form

Yours sincerely,

(Ghulam Muhammad)

How to Apply on Kamyab Jawan Youth Entrepreneurship Scheme KJYES 2019 Prime Minister Loan Scheme 2019

Every Pakistani can apply for PM loan scheme through only a web portal. The fee of the application form only Rs. 100/- and processing time is 30 days. Web portal link is Kamyab Jawan Youth Entrepreneurship Scheme KJYES 2019 Prime Minister Loan Scheme 2019

Silent Key Features of Kamyab Jawan Youth Entrepreneurship Scheme 2019 PM Jawan Loan Scheme

Prime Minister’s Kamyab Jawan SME Lending Program

Dear Sir/Madam,

  1. Small enterprises stimulate economic growth by providing employment opportunities, fostering innovation and reducing income inequalities. Lack of adequate financing facilities from formal sources is one of the key challenges faced by the small enterprises and youth entrepreneurs. Government of Pakistan, is cognizant of this situation and is fully committed to enable youth to avail affordable financing from banks for establishing new business or strengthening their existing business.

  2. In order to provide self-employment opportunities to unemployed youth, Government of Pakistan is launching Prime Minister’s Kamyab Jawan SME Lending Program across the country. Government of Pakistan shall provide mark-up and credit loss subsidy on small business loans in the range of Rs. 100,000 to Rs. 5,000,000 disbursed by banks under the program. The key features of the Program as approved by the Prime Minister are reproduced below:

    S. NoParticularsKey Features1Eligibility CriteriaI.

    All men/women 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.II.

    Small enterprises (startups and existing businesses) as per definition of SBP and owned by youth as per above mentioned age brackets are also eligible.III.

    For IT/E-Commerce related businesses, at least matriculation and/or experience of at least six months.2

    Loan size

    Size of the loan is segregated into two tiers, as under:Tier 1 (T1) loans- Rs 100,000 to Rs. 0.5 millionTier 2 (T2) loans- Above Rs 0.5 million and upto Rs 5 million3Loan typeWorking capital loans and term loans4Loan TenorUpto 8 years with maximum grace period of upto one year.5Debt to Equity ratioT1 loans- 90:10T2 loans- 80: 20The borrower’s contribution of equity would be in the form of cash or immovable property and will be required after approval of the loan.6Focus on Women25% of the loans will go to women borrowers.7Security RequirementsSecurity arrangements will be as under:T1 loans: Clean, however, only personal guarantee of the borrowerT2 loans: As per bank’s own credit policy8Risk MitigationGovernment will bear credit losses (principal portion only) on the disbursed portfolio of the banks as under:T1 loans: Upto 50%T2 loans: Upto 10%9Allocation in BudgetFinance Division shall allocate funds in each fiscal year’s budget as per estimates provided by SBP. Payment will be made on submission of consolidated claims of all the banks by the SBP.10PricingPricing for Working Capital & Term Loans:T1 loans: 6% p.a. fixed for borrower. Government will pay the difference of the cost at KIBOR+500bpsT2 loans: 8% p.a. fixed for borrower. Government will pay the difference of the cost at KIBOR+400bps11Executing AgencyIn the first instance, National Bank of Pakistan (NBP), Bank of Punjab and Bank of Khyber will execute the program under the guidance and supervision of State Bank of Pakistan. Subsequently, SBP will also advise other commercial banks for participation in the program.
    NBP will continue to play the lead role. NBP’s share in total disbursed loans will be upto 50%.12Sectors and ProductsAll sectors. Standardized schemes/ projects/ undertakings designed by SMEDA, or projects designed by private sector service providers or by individuals, themselves will also be admissible.13Application FormThe Form would be both in English and Urdu and require minimum essential information with simple format.The processing time will not exceed 15 days and will be stated clearly in the application form.The forms would be readily available both in branches and through dedicated websites of the banks. Non-refundable form processing fee will be Rs. 100 (Rupee One Hundred Only).14MonitoringSBP will publish consolidated information about the loans extended under this program for information of the public on quarterly basis on its website.15Geographical distributionWhole of Pakistan. In case of Balochistan, at least one branch of NBP will be designated per Division. All non-designated NBP branches will also provide and receive filled application forms and dispatch them to the nearest branches.16Additional measuresExecuting Agencies (EAs) under this program should ensure following additional measures:Criteria for assessing entrepreneurial potential should be developed and implemented.In case of loans for existing businesses, a robust independent verification mechanism may be introduced to ensure proper utilization of the loans. Further, for new businesses, a robust mechanism for ongoing monitoring of the loans’ utilization should be developed and implementedA mechanism must be introduced to ensure that the prescribed debt equity ratio has been maintained. Before disbursement of the loans, it should be ensured that the equity is deposited in the bank from the borrower’s own sources where the equity mechanism is in the form of cash.

  3. The banks are advised to gear up their systems for successful implementation of this program and to avoid any misuse of the program.

  4. Loan Application Forms will be available both in branches and through dedicated websites of National Bank of Pakistan, Bank of Punjab and Bank of Khyber. The standard loan application form is enclosed at Annexure-1. The banks are advised to mention their toll free number in the loan application form for the facilitation of youth entrepreneurs. Eligible borrowers may apply for the loans immediately after formal launch of the program by the Prime Minister.

  5. The banks are also advised that with the launch of Prime Minister’s Kamyab SME Lending Program, Prime Minister’s Youth Business Loan (PMYBL) scheme would cease to exist.

    1. Annexure -1: Loan Application Form