Marvi expressed hope that the loan scheme will boost the country’s economy and also help reduce the level of unemployment in the country. PHOTO: NNI
HYDERABAD: As many as 15,000 applicants for the ‘Youth Business Loan Scheme’ will be lent monthly credit through a lucky draw, said Member National Assembly (MNA) Marvi Memon, as she explained the mechanism of the government’s initiative to help budding entrepreneurs in running their ventures.
Memon, who is also a coordinator for the loan scheme, said that monitoring committees are being formed to oversee the project.
The initiative is the government’s delivery of a promise made during the election campaign. The Youth Business Loan, which is part of the larger ‘Prime Minister’s Youth Programme’, is designed to provide subsidised financing at 8% mark-up per annum for 100,000 beneficiaries through the National Bank of Pakistan and First Women Bank..
Memon said one representative from the PML-N and four from the business community and the banking sector will comprise the district level committees.
The scheme will provide credit of Rs100,000 to Rs2 million to new and old entrepreneurs.
“The committee will monitor the whole range of activity from submission of forms to release of loan, its utilisation and repay,” said Memon.
Marvi expressed hope that the loan scheme will boost the country’s economy and also help reduce the level of unemployment in the country.
The MNA said that the Small and Medium Enterprises Development Authority (SMEDA) has prepared at least 50 business plans which will be shared with the loan recipients.
“Smeda is being involved to develop the youth’s skills and will also help to develop the business plan in more than 50 areas of business.”
FCCI hails initiative
Meanwhile, Faisalabad Chamber of Commerce & Industry (FCCI) President Engineer Suhail Bin Rashid welcomed the development, saying the initiative will help the country in overcoming issues of employment and, to an extent, drive the economy forward as well.
He said that developed countries promote entrepreneurship and pointed out this as a reason for their prosperity.
Rashid urged the youth to apply for loans and utilise their abilities.
Published in The Express Tribune, December 10th, 2013.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS (4)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
1st yellow cab then mush's 4 stroke rickshaw then black cab of shehbaz and now loan. Why dont they create an enviroment where people come out and start a good business. ? What kind of business can bebstarted with only 2 million rupees? How many loan takers will degault? Why dont federation build up an enterprise to create job and then sold to public?
@uH: It will be paid by those who pay Inflation tax i.e. poor and middle class people.
Rather than creating employment opportunities and environment where entrepreneurship can blossom, these fuedal lords are again trying to enslave the young blood by giving them loans....
Pakistan ka Allah hi Hafiz!!!!!
What a sham! So who will foot the bill for when these unsecured loans default? The taxpayer, right?