Prime Minister Youth Business Loan PMYBL

Introduction

Small Businesses have potential to revitalize economic activity by creating employment opportunities, reducing poverty and providing economic linkages/services to the corporate sector. The growth of Small Businesses and their access to formal finance is imperative for the development of an economy. However, despite their strong potential, the small businesses particularly young entrepreneurs have traditionally remained credit constrained due to risk perception of banks towards these economic segments. On the other hand, the educated youth generally lacks entrepreneurial skills.

The Government of Pakistan as well as Soneri Bank Ltd. is well aware of this scenario and is committed towards uplifting the youth and providing them opportunities of financial independence through self-employment. With this objective, the Government has introduced Prime Minister’s Youth Business Loans scheme with a mark-up subsidy and partial guarantee facility for extension of small business loans.

Prime Minister’s Youth Business Loans (PMYBL) Scheme was launched by the Prime Minister for promoting youth entrepreneurship in the country. The main objective of the PMYBL Scheme is to provide loans to unemployed youth for establishing or extending business enterprises. As an Executing Agency (EA), Soneri Bank Limited has also participated with other Banks in the Scheme.

To download the form, click here.

Scheme at a Glance

  • Brief Description

Small business loans will focus on (but will not be restricted to) unemployed youth, especially educated youth looking for establishing or extending business enterprises.

  • Eligibility Criteria

All men / women holding CNIC, aged between 21 and 45 years with entrepreneurial potential to apply from designated branches.

  • Security Requirements

One Guarantor.

  • Permissible Collateral

Business Hypothecation.

  • Focus on Women

50% of loans will go to women borrowers.

  • Debt-Equity Ratio

90:10
The borrower’s contribution of equity would be in the form of cash or immoveable property and will be required after approval of the loan.

  • Loan Period

The tenor of a loan is up to 8 years including a grace period of one year.

  • Pricing

6% fixed for a borrower.

  • Size of Loan

Up to Rs.2.000 Million.

  • Sectors and Products Feasibility Reports

All sectors.
Approved SMEDA Business Feasibility Report, private sector service providers or Applicant’s own prepared Feasibility Report will be admissible.

  • Application Form & Processing Fee

The form would be both in English and Urdu, and require minimum essential information with a simple format.
Both the forms would be available at our designated branches and corporate website.
Nonrefundable form processing fee will be Rs. 100 (one hundred).

  • Monitoring

SBP will publish consolidated information about the loans extended under this scheme for information of the public on quarterly basis on its website;
An effective Complaint Centre to process and resolve complaints will be set up;
E-government directorate of Ministry of IT will provide support.

  • Geographical Distribution

Whole of Pakistan through 12 designated branches of the bank

  • Quota for Special Persons

Banks are advised to note that the Federal Government has approved 5% quota for three categories i.e. Shaheed (widow and children of Shaheed), widows and Special Persons (cumulative quota for three categories combined) on the basis of number of loans approved by the banks under the PM’s Youth Business Loans Scheme.

  • Guarantor Qualification Criteria

Guarantor(s) must

A. Have individual or collective net worth of 1.5 times of requested loan amount. The applicant can also provide a guarantee of more than one guarantor (maximum 3) with an aggregate net worth of 1.5 times of the requested loan amount. OR
B. Be government Employee of BPS-15 or above with minimum 8 years of remaining service at the time of providing the guarantee. No net worth required if the guarantor is government employee of BPS-15 or above.

Either of the two guarantors in (A) and (B) above will also fulfill the following conditions:

  • Clean Credit History
  • Not an employee of Bank working as Executing Agency for PMYBL Scheme
  • Cannot be the applicant

The following points in this respect may also be noted:

  • Blood relatives can be a guarantor
  • It is not mandatory for the guarantor to reside in the same city of the applicant
  • There is no age limit for guarantors who are not government employees

C. Those borrowers, who are seeking loans for expansion of their existing businesses or for set up new businesses and have immoveable property in their own name valued at least 1.5 times of the requested loan amount, can offer this property as security in lieu of guarantee

 

  • Repayment during Grace Period

All loans will have a grace period of 12 months from the disbursement date during which installments will not be paid. However, the customers will be required to pay only mark-up during the grace period.

  • Premature Termination of Loan

Under the PMYBL Scheme, early settlement of loan facility at the request of the borrower is permissible. However, no premature termination penalty to be charged to the borrower.

  • Waivers

The processing charges as mentioned in the Bank’s Schedule of Charges are waived under this Programme Scheme. However, other charges like CIB, Legal / Security Documentation, Valuation Charges (if applicable), insurance charges etc will be borne by the borrower at actual or as per prevailing Schedule of Charges.

  • Turn Around Time (TAT) for Approval

For sanction / approval process period under this Scheme, the turnaround time (TAT) to be maintained is 15 working days. The Processing time will not exceed 15 working days.

Where we can apply

Sr. No Code Branch Branch Address Contact Details
1 0001 Main Branch Lahore 87, Shahrah-e-Quaid-e-Azam, P.O. Box 49, Lahore,  Tele Code (042), Fax: 6303266, 6368138, Swift: SONEPKKALHR, Telex: 47694 SONRI PK & Telephones: 6368141-48 
2 0007 Main Branch Gujranwala Near Aftab Steel Market, G.T. Road, Gujranwala,  Tele Code: (055), Fax: 3843564, PABX: 3843560
3 0009 Small Industrial Estate Branch, Sialkot Shahabpura Road, Sialkot. P.O. Box: 2958. Swift: SONEPKKASKT, Tele Code: (052) 
Fax: 3242611, Telephones: 3242607-9 & 
UAN 111-567-890, Telex: 53327 SONRI PK
4 0022 Main Branch Multan Mall Plaza, Quaid-e-Azam Road, Multan Cantt.   Tele Code: (061), Fax: 4546808  Telephone: (Gen) 4512884, (PABX) 4519927, (Int’l Bkg) 4511022, & UAN 111-567-890, Swift: SONEPKKAMTN
5 0014 Main Branch Rawalpindi Kitchlew Building, 41-Bank Road, P.O.Box 62, Rawalpindi Cantt Tele Code: 051, Fax: 5522906, Swift: SONEPKKARWP, Tele: 5522901-03,    
E-mail:  main.rawalpindi@soneribank.com
6 0016 Main Branch Islamabad 68-W, Sama Plaza, Blue Area, P.O. Box 2931, Islamabad Tele Code: 051, Fax: 2803238
Swift: SONEPKKAISD, Telephones: 2277551, 2272460 & 2824993 & UAN 111-567-890,   
email: main.islamabad@soneribank.com
7 0003 Main Branch Peshawar Saddar Road, Peshawar Cantt.,   Tel Code: (091), Fax: 5273727
Swift: SONEPKKAPSH, Telephones: (PABX) 5277914-16 & 5277394, 
8 0002 Main Branch Karachi Al-Rahim Tower, I.I. Chundrigar Road, P.O. Box 5798, Karachi.  Swift: SONEPKKAKAR,   Fax: 2436980,  Tele: 2436990-94 & UAN 111-567-890
9 0004 Main Branch Quetta Shahrah-e-Iqbal, P.O. Box: 624, Quetta,  Tel.Code (081) Fax: 2821524
Swift: SONEPKKAQTA, Tele: 2821610 & 2821641 & UAN 111-567-890
10 0006 Main Branch Hyderabad Dr. Ziauddin Road, Saddar, P.O. Box: 419, Hyderabad,  Tele Code: 0 22) Fax: 2781530, Swift: SONEPKKAHYD, Telephones: 2781528-29 & UAN 111-567-890
11 0010 Main Branch Gilgit Raja Bazar, Gilgit 05811-453749
12 0145 Main Branch Chitral Golden Market, Governor Cottage Road, Chitral 0943-412078-9

FAQs

Q1. What is the Eligibility Criteria for PMYBL Scheme?

  • All men / women holding CNIC, aged between 21 and 45 years with entrepreneurial

Potential to apply from designated branches.
Q2.  What are the Security requirements for the loan?

  • One Guarantor.

Q3. Is there any collateral requirement?

  • Yes, there is business hypothecation requirement for the loan i.e. hypothecation of Stocks-in-trade / receivables of the business.

Q4. Is there any quota for the Women in PMYBL Scheme?

  • Yes, 50% of loans will go to women borrowers.

Q5. What is the Debt-Equity Ratio for the Applicant in PMYBL Scheme?

  • 90:10, the borrower’s contribution of equity would be in the form of cash or immoveable property and will be required after approval of the loan.

Q6. What is the loan Period?

  • The loan period is 8 years including one year grace period.

Q7. What is the Mark-up Rate for PMYBL Scheme?

  • 6% fixed for a borrower.

Q8. What is the maximum amount of Loan?

  • Up to Rs.2.000 M.

Q9. What are the requirements of A Guarantor for PMYBL Scheme?

  • Guarantor(s) must

A. Have individual or collective net worth of 1.5 times of requested loan amount.
An applicant can also provide a guarantee of more than one guarantor (maximum 3) with an aggregate net worth of 1.5 times of the requested loan amount. OR
B. Be Government Employee of BPS-15 or above with minimum 8 years of remaining service at the time of providing the guarantee. No net worth required if a guarantor is government employee of BPS-15 or above.
Either of the two guarantors in (A) and (B) above will also fulfill the following conditions.

  • Clean Credit History.
  • Not an employee of Bank working as Executing Agency for PMYBL Scheme.
  • Cannot be the applicant.

The following points in this respect may also be noted:

  • Blood relatives can be a guarantor.
  • It is not mandatory for the guarantor to reside in the same city of the applicant.
  • There is no age limit for guarantors who are not government employees.

C. Those borrowers, who are seeking loans for expansion of their existing businesses or for set up new businesses and have immoveable property in their own name valued at least 1.5 times of the requested loan amount, can offer this property as security in lieu of guarantee.

Q10. Is there is any installment payable during the grace period?

  • No, there will be no installment paid during the grace period of a loan. However, the borrower will be required to pay only mark-up during the grace period.

Q11. Is premature termination of the loan is permissible under PMYBL Scheme?

  • Yes, at the request of the borrower, early settlement of the loan facility is permissible.

Q12. Is there any premature termination penalty to be charged to the borrower under PMYBL Scheme?

  • No, there is no premature termination penalty for the borrower for early settlement of the loan facility.

Q13. What are the charges to be recovered from the applicant for processing of loan application under PMYBL Scheme?

  • The processing charges are waived for PMYBL Schemer. However, other charges like legal / security documentation, valuation of collateral (if applicable), insurance charges, e-cib etc will be borne by the applicant at actual or as per prevailing Schedule of Charges.

Q14. What is Turn Around Time (TAT) for the PMYBL Scheme?

  • There are 15 working days TAT for the processing and approval of loan under the PMYBL Scheme.

Q15. From where we can get Loan Application Form?

  • Both of the forms would be available at our designated branches and corporate website.

Q16. Is there any quota for Special Persons in PMYBL Scheme?

  • Yes, the Federal Government has located 5% quota for three categories i.e. Shaheed (widow and children of Shaheed), Widows and Special Persons (cumulative quota for three categories combined) on the basis of number of loan approved by the Bank under PMYBL Scheme.

Q17. In which Sector an applicant can apply loan and from where an applicant can get the Business Feasibility Report for the intended business/project?

  • All sectors. Standardized scheme / projects / undertakings may be obtained / designed by SMEDA, projects designed by private sector service providers or by individuals themselves will also be admissible.