ISLAMABAD:The Prime Minister’s Youth Affairs in collaboration with the Small and Medium Enterprises Development Authority (SMEDA) intends to benefit approximately 138,000 youth over the period of next five years through Kamyab Jawan (SME) program.
With disbursement of a cumulative sum of Rs200 billion through banks, the programme is endeavoring to economically empower youth by creating one million job opportunities through SME sector.
The flagship initiative of the government will not only promote SME sector in the country but also create employment opportunities for the youth and eliminate un-empowerment.
According to the official data, low coast loans which would be classified in three tiers will be provided to the youth between the age of 21 – 45 years through National Bank of Pakistan, Bank of Punjab and Bank of Khyber for establishment of small businesses enterprises.
The data further revealed that under first tier loans between Rs100,000 to Rs500,000 will be provided with a debt-equity ratio of 90:10 and interest rate of six percent whereas the government will pay the difference between the applied interest rate and KIBOR + 500 bps.
Under the second tier loans between Rs500,000 and 10 million will be disbursed with a debt equity ratio of 80:20 which also carry an interest rate of eight percent.
The data informed that under third tier loans between Rs10 million and 25 million will be provided with a debt equity ratio defined by bank’s lending policy and carrying an interest rate of nine percent.
For second and third tires the government will pay the difference between the applied interest rate and KIBOR + 400 bps.
For the program, the SMEDA will educate and facilitate the youth by providing training in development cycle and also find the top most business ventures in the local and international market for.