National Bank of Pakistan in five years from now will disburse Rs 105 billion to support President's Rozgar Scheme, "NBP Karobar", which is expected to generate 5.4 million employment and give about 12 percent return on the investment to NBP.
Addressing a press conference held at the NBP headquarters on Friday president of the bank Syed Ali Raza said that this initiative of the NBP is well calculated. It has been designed after research and launched after a very restricted and minutely supervised pre testing. He said that the scheme is being marketed under the brand name of "NBP Karobar". It is open for all banks equally to participate.
He said that it is public-private partnership and should be clearly understood as a commercially viable product. "Nothing is being doled out from the counters of the bank and all the beneficiaries would be treated as customers. If they default, chances of which are remote, will be treated as per rules governing default cases.
The customer mark-up is fixed at six percent with NBP return of Kibor+2pc and GOP subsidised difference of 6pc to NBP. The government would be sharing loss. There will be life and disability insurance available to the customer. It will be free of cost for them.
In addition to job creations and becoming a source of economic gains for the unemployed youth the introduction of five products will have a multiplier effect of 83 items (approx.) over 10 years.
Five products for which financing is presently available are i), NBP Karobar Utility Store (Under a franchise with Utility Stores Corporation), ii) NBP Karobar Mobile General Store (without USC franchise), iii) NBP Karobar Transport, iv) NBP Karobar PCO and v) NBP Karobar Tele-center.
For utility store, mobile general store, and transport the maximum limit of financing is Rs 200,000. Financing for PCO is restricted to Rs 50,000 maximum limit and for Tele-center it would be in the range of Rs 42,500 to Rs 193,800. All loans will be for two to five years.
Raza said that customers should realise that it is not a handout and there will be no cash payment but only the product will be provided. "IN NBP Karobar, customers should know that it is not a handout and only eligible applicants, will get the loan."
No security is required other than financed assets. However, NBP Karobar PCO/Tele-center one guarantor is required. Learning from experience and the inconveniences of the applicants NBP has relaxed the requirement of age, driving licence, education, character certificate, guarantors and reduction in down payment to 10 percent from 15 percent. Those who are aged 18-45, having CNIC, resident of the area for the last two years and unemployed are eligible for the loan.
Raza said, "Now with major issues of the scheme stand resolved, NBP is fully geared up to have full launch of the product by March 31, 2007. Full launch will result in NBP-Karobar being offered in over 1000 branches covering all areas of Pakistan."
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