The Prime Minister of Pakistan, Shehbaz Sharif launched Youth Business and Agricultural Loan Schemes to promote self-employment and entrepreneurship amongst the youth.
According to the details, PM Shehbaz Sharif launched Youth Business and Agricultural Loan Schemes in Islamabad on Tuesday. People in the age bracket of 21 and 45 years can avail of the loan facility of up to 7.5 million rupees under these schemes. For IT and E-commerce businesses, the lower age limit is eighteen years.
Micro-financing through small business loans will promote a norm of job creation rather than job seeking among the country’s youth bulge.
The addition of agricultural loans will help the rural youth in bringing innovation to farming which can include mechanized farming, the creation of agricultural value chains, and the Solarization of farming equipment to create more sustainable energy resource management in a climate-challenged country like Pakistan.
Loans of up to 1.5 million rupees can be availed on the personal guarantee of the borrower.
There will be no interest rate on the loan of up to 0.5 million rupees. Five percent interest will be charged on the loan of over 0.5 million to 1.5 million rupees. A seven percent interest rate will be charged on loans of over 1.5 million rupees to 7.5 million rupees. A twenty-five percent quota has been reserved for women.
Islamic banking facilities can also be availed on the loan scheme.
The loan scheme was the brainchild of PML (N) in making the entrepreneurship-related dreams of youth a reality since 2013. Recently the scheme was paused for restructuring and revision.