Prime Minister's Youth Business Loan - Introduction

Prime Minister’s ‘Youth Business Loan’, for young entrepreneurs between the age group of 21 - 45 years, is designed to provide subsidised financing at 8.0% mark-up per annum for one hundred thousand (100,000) beneficiaries, through designated financial institutions, initially through National Bank of Pakistan (NBP) and First Women Bank Ltd. (FWBL).

Small business loan with tenure up to 8 years, with first year grace period, and a debt : equity of 90 : 10 will be disbursed to SME beneficiaries across Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir and Federally Administered Tribal Areas (FATA). It has a 50% quota for women and 5% quota for families of Shaheeds, Widows and Disabled persons.

SMEDA has been tasked with an advisory role in the implementation of PM’s scheme by providing more than fifty five updated pre-feasibilities for referencing by Loan beneficiaries and participating banks to optimally utilize their financial resources. SMEDA shall continue to add additional prefeasibilities. However, it is not necessary to develop a project on these prefeasibilities. Any other projects will also be entertained by the banks.

Pre-feasibility studies are well researched yet generic due diligence reports that facilitate potential entrepreneurs in project identification for investment

The main objective of the pre-feasibility studies prepared by SMEDA is to provide information about investment opportunities to the small & medium enterprises (SME’s). A typical pre-feasibility study provides:

  1. Comprehensive information for investment opportunity in a business.
  2. Specific information regarding different business areas like, marketing, technical, industrial information etc. for the existing entrepreneurs to improve their exiting setup.
  3. Project investment information and financial projections to support viability of the business.
 
Following is the list of available Pre-feasibility Studies:-