Here's how to apply for govt's Kamyab Jawan Programme

The prime minister’s Kamyab Jawan Programme is the government's latest initiative to improve the entrepreneurial culture in Pakistan and making the youth of the country economically independent.

Under the ‘Kamyab Jawan Programme’, one hundred billion rupees will be distributed among youth as loans for their business ventures. The youth will be provided loans under three categories and the scheme will benefit one million youth.

Here is all you need to know about the programme, from its eligibility criteria to application process.

Eligibility Criteria           

• All men/women holding CNIC, aged between 21 and 45 years, with entrepreneurial potential are eligible. For IT/ E-Commerce related businesses, the lower age limit will be 18 years.
• Small enterprises (startups and existing businesses) as per definition of State Bank of Pakistan and owned by youth as per above mentioned age brackets are also eligible.
• For IT/E-Commerce related businesses, at least matriculation and/or experience of at least six months.

Loan size

Size of the loan is segregated into two tiers, as under:

• Tier 1 (T1) loans- Rs 100,000 to Rs. 0.5 million
• Tier 2 (T2) loans- Above Rs 0.5 million and upto Rs 5 million

Loan type           

Working capital loans and term loans.

Loan Tenor        

Up to eight years with maximum grace period of up to one year.

Debt to Equity ratio       

• T1 loans- 90:10
• T2 loans- 80: 20

The borrower's contribution of equity would be in the form of cash or immovable property and will be required after approval of the loan.

Focus on Women           

25 per cent of the loans will go to women borrowers.

Security requirements

Security arrangements will be as under:

• T1 loans: Clean, however, only personal guarantee of the borrower.
• T2 loans: As per bank’s own credit policy.

Pricing 

Pricing for Working Capital and Term Loans:

• T1 loans: 6% p.a. fixed for borrower.
• T2 loans: 8% p.a. fixed for borrower.

Application form            

• The form would be both in English and Urdu and require minimum essential information with simple format.
• The processing time will not exceed 15 days and will be stated clearly in the application form.
• Non-refundable form processing fee will be Rs. 100 (Rupee One Hundred Only).
• The applicant shall apply directly via Prime Minister Kamyab Jawan portal i.e http://yes.kamyabjawan.gov.pk/BankForm/ApplicantForm.

To ensure transparency, the entire program is made available on a digital platform and a scorecard has been developed on the basis of artificial intelligence to run the program.