Under the vision of PM of Pakistan Imran Khan, Chairman PTI, an employment scheme (Punjab Rozgar Scheme 2020), having the widest range, has been initiated in the Punjab by Chief Minister of Punjab, Sardar Usman A.K. Buzdar.
In this scheme government will be offering as much as 30 billion rupees to the unemployed youth. However, under this scheme loans up to Rs.10 million will be given to increase employment in the province.
Gender: Male, Female, Transgender, and Differently abled persons having age 20-50 Years can apply for
- Existing Businesses
- Start-ups with Viable Business Plans
- Entrepreneur Working for Resource Efficient and Environment Friendly Interventions
Check detail eligibility criteria here.
- Implemented by Punjab Small Industries Corporation
- Lending Rs.100,000 – Rs.10,000,000
- Tenure of Loan 2-5 Years
- Lowest Mark-up Rate (may be around 4-5%, not sure)
How to apply?
Aspirants need to submit their application online through https://rozgar.psic.punjab.gov.pk/. Detail procedure for submitting your application can be found here.
Under Punjab Green Development Program, the limit of a loan will remain the same. However, preference will be given to the micro-enterprises, ready to adopt the environment improving technology, having up to 10 numbers of employees.
|Purpose of loan|
|Processing fee||Rs. 2000/- (non-refundable) at the time of submission of application|
|Tenure of loan / Repayment Period||From 02 to 05 years including a grace period|
|Grace period||Up to Six (06) Months (However, the markup will be charged during the grace period)|
|Type of loan||Term loan as per bank policy and working capital|
|Cost of Capital|
|Cost of Capital to be paid by Borrower:|
|Debt: Equity||80:20 (For males)|
90:10 (Women, Transgender and Differently abled)
(Meaning thereby 20% / 10% of the project cost will be invested by the borrower)
|Disbursement of loans||In installment(s) as per approved business plan|
|Security of loan||1. Security for Clean Lending|
i. Security for loan limit from Rs. 100,000/- to Rs. 500,000/-
Personal Guarantee of the borrower along with net worth statement.
ii. Security for loan limit from Rs. 500,001/- to Rs. 1,000,000/-
· Personal Guarantee of the borrower along with at least one, Third Party guarantor with overall net worth collectively equal to size of the loan applied.
(Third Party should be a citizen of Pakistan and resident of the Punjab having a valid CNIC and must not be older than 55 years. Moreover, e-CIB of third party should be clean i.e. it should not have any overdue or write off history)
· Guarantee of Government employee of BS-10 and above alongwith personal guarantee of the borrower.
(Departmental gurantee of the government employee will be mandatory)
Net Worth / Wealth Description and Calculation Criteria:
· Net Worth may be in the form of Tangible Asset i.e Property or Vehicle ownership and may be assessed as follows:
a. Property may be valued at respective DC rate.
b. Property valuation may be established from Wealth Tax statement.
c. Evaluation by Pakistan Banks Association (PBA) approved evaluator/agent
d. Vehicle valuation shall be invoice price less depreciation (10% for each passing year).
2. Security for loan limit from Rs. 1,000,001/- to 10,000,000/-
Mortgage of Assets
a. Residential / Commercial / Industrial / Agricultural Property / vehicle having clean title and clear access (acceptable to the bank) and valued by banks approved appraiser as per bank’s policy.
b. The property should be in the name of borrower or blood relative of individual / proprietor / partners.
c. Documentation shall be as per bank credit policy / legal division. Charge / hypothecation on fixed / current assets as per internal / external regulations.