Rs 5.2bn loans to be disbursed under PMYBL scheme

KARACHI: Nearly Rs 5 billion loans under Prime Minister Youth Business (PMYBL) scheme will be disbursed next week to the successful 5,830 candidates out of 60,000, sources in the National Bank of Pakistan (NBP) said. The Prime Minister Nawaz Sharif will likely to distribute the cheques to successful borrowers in next week at a ceremony in Islamabad. Majority of the applications were received by state-owned banks such as NBP which evaluated duly the eligibility of the loan seeker under the prescribe criteria of the scheme. The completion of first phase of scheme was possible with the untiring efforts of the PMYBL team of NBP, President NBP Ahmed lqbal Ashraf said at a press conference. The overwhelming majority of applicants are seeking funds for agriculture related projects, a key activity of the Bank which has a near 60 percent share of the total amount disbursed in this sector amongst all the designated financial institutions. This vast agriculture related portfolio of the Bank has the lowest non-performing loans ratio as well, he said. According to the scheme, youth will be given loan up to Rs 2 million at the interest rate of 8 percent fixed for borrower however the government will pay the difference of the cost of KIBOR plus 500 basic points for which it allocated Rs 5 billion in the closing financial year 2013-14. The loans will be given for the maximum 8 years whereas the tenor will depend upon the nature of business, pattern of income and repayment capacity.

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