Prime Minister Small Business Loans Scheme 2013 for unemployed educated youth

Prime Minister of Pakistan Mian Muhammad Nawaz Sharif has announced Small Business Loans Scheme for unemployed educated youth to establish new enterprises across Pakistan. 100,000 loans would be disbursed under the scheme.

Prime Minister Youth Program 2013-2014

Prime Minister Small Business Loans Scheme 2013
Small Business Loans Scheme will focus on unemployed educated youth aspiring to establish new enterprises.

How To Apply and Registration Process

You can apply in PM’s Scheme for Small Business Loans Scheme as per eligibility criteria mentioned below. The federal cabinet has already given approval to all these initiatives.

All arrangements for the implementation of these programs have been completed. The Small Business Loans program will be completely on merit basis and transparent.

Therefore only eligible people should apply for this program. Government of Pakistan will announce the registration procedure with application forms after 3rd October 2013 and be registered soon.

Prime Minister Small Business Loans Scheme 2013 Criteria

Eligibility criteria:

An individual, male or female, of age not more than 35 years and has an entrepreneurial potential is eligible to apply for the scheme.

Focus on women:

It is believed that increased economic participation by women can play a significant role in national development. In an attempt to encourage the same, 50% of loans will be given to female borrowers.

In addition, independent economic activity will empower Pakistani women both socially and in terms of finances.

Debt-Equity ratio:

A 90:10 debt-equity ratio would be followed with tenor of up to 7 years.


It is fixed at 8% for the borrower. However, the difference in the cost will be paid by the Federal Government at KIBOR+500 bps.


The State Bank of Pakistan shall explore providing 50% refinance at the risk of participating banks.

Risk mitigation:

Government will share 50% of losses subject to a maximum of 10% of the loan amount.

Number of Loans:

100,000 loans would be disbursed under the scheme.

Size of Loan:

The amount of each loan can range from Rs.0.5 million to Rs 2.0 million.

Average Loan Size:

The average loan size would be Rs.1.25 million.

Allocation in Budget 2013-14:

Rs.5 billion have been allocated in the budget for the financial year 2013-2014.

Executing agency:

In the initial phase of the scheme, the National Bank of Punjab and First Women Bank would act as the executing agencies of the scheme under the guidance and supervision of the State Bank of Pakistan. Other Banks will be encouraged to join.

Sectors and Products:

The scheme encompasses all sectors of the economy. Standardized schemes/projects/ undertakings will be designed by SMEDA. Additionally, projects designed by private sector service providers and individuals are included in the scope of the scheme.

Click Here For Registeration

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