The National Bank of Pakistan (NBP) has distributed 5,000 soft loans under the Youth Entrepreneurship Scheme (YES) of the Kamyab Jawan Program (KJP), of which nearly 90 percent are without collateral.
The scheme provided 5,000 loans with the added facility of being free from security and collateral.
The Special Assistant to the Prime Minister (SAPM) on Youth Affairs, Muhammad Usman Dar, congratulated the NBP for this achievement on Tuesday.
While taking into twitter he said that the NBP had made history: “National Bank of Pakistan achieves a momentous milestone; successful disbursement of 5,000 loans. 90 percent of these loans are free of security and collateral; a first in Pakistan’s history! Our partner banks make it possible for us to enable every Kamyab Jawan in Pakistan”.
Dar further explained that the soft loan scheme has three tiers. Under the first tier, the loan limit is Rs. 100,000 (Rs. 0.1 million) to Rs. 1 million. Tier 2 offers a loan limit of Rs. 1 million to Rs. 10 million, and Tier 3 has a limit of Rs. 10 million to Rs. 25 million.
No collateral or security is required for Tier 1 loans by the banks as this tier focuses on ‘talent’. Under this category of loans, at least 4,000 shops have been opened in different localities, he said.
The SAPM also revealed that the government is planning to add another tier within the range of Rs. 100,000 (Rs. 0.1 million) to Rs. 500,000 (Rs. 0.5 million) as most of the applicants to the Youth Entrepreneurship Scheme had asked for amounts within this range.