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Prime Minister Youth Financing Scheme

Prime Minister Youth Financing Scheme- (Hope of tomorrow’s youth)
A historical initiative to help the youth of Pakistan achieve their dreams. A plan to encourage small businesses and enhance their quality of life of the well deserved and strengthen the economy of our country for today and beyond.

ELIGIBILITY CRITERIA and product features;
Pakistani national, men and women, holding valid CNIC. Age between 21 to 45 year, having ability to start their own business or intend to expand the existing business.

100% SHARIAH COMPLIANT / ALL FACILITIES WILL BE EXTENDED ON MERIT.

FINANCE LIMIT; Maximum upto: Rs. 2,000,000/- (Two Million) Depending on the business requirement / feasibility report

APPLICANT’S CONTRIBUTION/ EQUITY; Minimum 10% of the financed amount. Depending on the business feasibility report, subject to approval, max 90% financing will be given by the bank

SECURITY REQUIREMENTS:

  1. Personal guarantee(s)* of high net worth/credit worthy individuals or
  2. Mortgage of immovable property* owned by applicant in lieu of Personal Guarantee
  3. Hypothecation of Business Stocks

*Criteria for Guarantor Qualification / acceptable property defined overleaf

TENOR / REPAYMENT OF FAICLITY; Maximum 8 years. The tenor will depend upon the nature of business, pattern of income and repayment capacity.

SERVICE CHARGES / PRICING ; 8% p.a. to be paid by the customer. The government will pay the difference as subsidy.

APPLICATION FORM ;The Form (both in English and Urdu) would be readily available in all branches and websites of the bank.

Non – refundable form processing fee will be Rs. 100 (One Hundred Rupees).

PROCESSING TIME; within 15 working days subject to submission of all required information / documents by applicant.

ELIGIBLE SECTORS ; All Shariah compliant sectors and businesses, that could start and run within the prescribed parameters of the policy, may be financed. The applicants will be encouraged to obtain, standardized schemes/projects/undertakings from SMEDA or any other body

CRITERIA FOR GUARANTOR QUALIFICATION / ACCEPTABLE PROPERTY

GUARANTOR (S) QUALIFICATION CRITERIA:

Guarantor(s) must:

  • Have individual or collective Net worth of 1.5 times of required financing amount or Government Employee of BPS-15 or above with minimum 8 years of remaining service at the time of providing the guarantee.
  • Blood relative can also provide a gaurantee.
  • It is not mandatory for the guarantor to reside in the same city of the applicant.
  • No net-worth required if guarantor is government employee of BPS -15 or above.
  • Applicant can also provide guarantee of more than one guarantor (maximum 3) with aggregate net-worth of 1.5 times of the requested financing amount.
  • Not an employee of ABPL.
  • There is no age-limit for guarantors who are not government employees.

CRITERIA FOR ACCEPTABLE PROPERTY TO BE OFFERED IN LIEU OF OF GUARANTEE

If a person cannot arrange an eligible guarantor, then alternatively can provide mortgage of immovable property in lieu of guarantee.

  • Clean / unencumbered property in the name of applicant, valued at least 1.5 times of requested financing amount acceptable as security.
  • Valuation of the property will be done after sanction of the financing at the time of completion of legal documentation.
  • Valuation and mortgaged charges to be born by the applicant.
   

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