The Prime Minister’s Kamyab Jawan Youth Entrepreneurship Scheme (YES) program’s second phase has been announced and it will be launched on 12th of August 2020. In this article we will share what you need to know about Kamyab Jawan Youth Entrepreneurship Scheme to understand and apply for it.
How much loan can you get?
You can get loan from Rs. 100,000 up to Rs. 25,000,000 under this scheme. The loans are divided into three tiers which are as follows:
- Tier 1 (T1) Loans: Rs 100,000 to Rs. 1,000,000 i.e. from one lakh to 10 lakh.
- Tier 2 (T2) Loans: Above Rs. 1,000,000 to Rs. 10,000,000 i.e. more than 10 lakh to 1 crore.
- Tier 3 (T3) Loans: Above Rs. 10,000,000 to Rs. 25,000,000 i.e. more than 1 crore to 2.5 crore.
What security/collateral you need to provide for loan?
For loans less than or equal to Rs. 1,000,000 (Tier-1), no collateral is required.
For loans greater than Rs. 1,000,000 (Tier-2 & 3), any bankable collateral acceptable to the bank is required. The decision on collateral for these loans loans rests with the participating banks. However, these may include following:
- Mortgage of Applicant Property (Residential/ Commercial/ Agricultural, etc.)
- Mortgage of Third Party Property Residential/ Commercial, etc.)
- Hire purchase of vehicles (Joint registration)
- Lien on marketable securities/ certificate of deposits/ national savings certificates, etc.)
- Hypothecation of current and fixed assets including stocks and receivables
- Pledge of gold ornaments
- Registered charge on business assets in case of joint stock companies
- Third party guarantees
This is just an indicative list. The actual decision on collateral would vary from case to case and will invariably be based upon the credit policies and practices of participating banks.
Who can apply?
Any Pakistani National within the age bracket of 21 to 45 can apply. You should be 21 or above and under 45 at the time of application.
There are no other conditions for applying for this loan. No specific educational requirement or background, but if you are applying for any business that requires any specific specialization then you should have relevant education or certification. Although there is no requirement of education but the applicants with educational background that supports their business & application may be likely for getting the loan.
What are the Interest Rates & Tenure of the Loan?
The tenure for repayment of these loans is 8 years with one year grace period.
The mark up per year for the first phase of the loan scheme was 8% i.e. if you obtain loan of Rs. 1,000,000 for 8 years tenure then you have to pay Rs. 14,137/- monthly for 8 years (96 installments). The rates for upcoming phase are also likely to be the same, however as per circular of State Bank of Pakistan the pricing details are as follows:
| Product | Customer Pricing | Bank Pricing |
| Tier 1 | 3% | KIBOR+400 BPS |
| Tier 2 | 4% | KIBOR+400 BPS |
| Tier 3 | 5% | KIBOR+400 BPS |
Where can you apply?
Remember that you have to apply online only on Kamyab Jawan’s official website for this loan. No need to go to bank or wait in queues; instead you apply online on their website, you get a confirmation SMS and once they scrutinize the applications the bank will call you for further procedure. Following is the link for the website:
Once the applications start to launch on 12th August 2020, you need to go to THIS LINK to fill in online application for your Kamyab Jawan YES loan.
Which banks are processing these loan applications?
Only three banks are processing these loans and based on first phase of this process, it is quite efficient as compared to typical loans processed by government organizations or banks. Following are the banks that will process your loan applications:
You can go to their websites by clicking on the links above and find out more about their processing and list of branches dealing with loan processing of Kamyab Jawan.
For more details:
For further details regarding the scheme you may go to following links:
i need for business
Is it a new business or existing one?
you need to fill ONLINE application form on Kamyab Jawan website on or after 12 Aug 2020, and choose a bank among National Bank, Bank of Punjab or Bank of Khyber according to your location. After that the bank will contact you for further procedure.
i need for business