Cumulative disbursements under the Prime Minister's Youth Business Loans (PMYBL) Scheme have reached Rs 26.76 billion to 26,679 beneficiaries at the end of last fiscal year (FY19). Total number of applications received by banks/Executing Agencies (EAs) under PMYBL Scheme as of June 30, 2019 stood at 101,938. Out of these 101,938 applications, 89,860 or 88 percent applications were received from male applicants and 12,078 or 12 percent applications were received from female applicants. Moreover, since the launch of the scheme, number of sanctioned applications stood at 33,145 as on June 30, 2019.

A year-on-year growth of 6 percent was observed with respect to loans disbursed under the scheme with the total disbursed amount increasing from Rs 25.132 billion to 25,128 borrowers at the end of June, 2018 to Rs 26.760 billion to 26,679 borrowers at the end of June, 2019.

During the last quarter (April-June) of FY19, EAs under PMYBL received 215 applications. The largest number of applications was received by JS Bank 156 applications followed by NBP 35 applications. With the addition of 215 applications, cumulative applications received under PMYBL as of June 2019 stood at 101,938.

The sanctioned applications under PMYBL increased from 33,074 at the end of March, 2019 to 33,145 at the end of June, 2019. Similarly, the sanctioned amount under PMYBL increased from Rs 32.838 billion at the end of March, 2019 to Rs 32.940 billion at the end of June, 2019. The sanctioned amount also showing a YoY growth of 4 percent as it was Rs 31.595 billion as on June 2018.

During quarter under review, 190 applications were received from male and 25 applications from female applicants under the scheme. By the end of June 2019 quarter, male applicants constituted 88 percent of the total applications received so far under PMYBL, while remaining 12 percent constituted the share of female applicants.

A total disbursement of Rs 129 million was made to 110 borrowers during Apr-Jun 2019 quarter under PMYBL with major contribution from NBP and JS Bank.

The PML-N government introduced PMYBL Scheme in 2013 with the aim of providing youth the opportunities of financial independence through self-employment. Under the Scheme, small businesses are provided loans up to Rs 2,000,000 at a service charge of 6 percent p.a. for setting up new business or strengthening existing business.

As a further incentive to the banks, government also shares 5 percent of credit losses of total outstanding loan portfolio of the banks under the scheme. Currently, eighteen banks are participating in the scheme, of which three are public sector banks NBP, FWBL and Sindh Bank Limited, while the remaining fifteen are private sector banks.

However, in July this year, the PTI government, ceasing the PMYBL, has introduced a new financing scheme namely "Prime Minister's Kamyab Jawan SME Lending Program" to provide soft loans to young entrepreneurs.

The scheme has a tenure of up to 8 years with maximum grace period of up to one year and with loan size of Rs 100,000 to Rs. 0.5 million under Tier 1 (T1) and Rs 0.5 million to Rs 5 million Tier 2 (T2) at 6 and 8 percent respectively.

Copyright Business Recorder, 2019