ISLAMABAD: National Bank of Pakistan (NBP) has received 59,794 applications for Prime Minister Youth Business Loans Scheme out of which 15,311 loans have been approved.
According to an official source, an amount of Rs.3.914 billion has been disbursed, while 13,982 loans are under process.
While the First Women Bank Limited (FWBL) has received 459 applications out of which 155 loans have been approved through which an amount of Rs.118.430 million has been disbursed and 95 loans are under process.
The loans ranging from Rs 100,000 to Rs. 2,000,000 are provided to the youth under this scheme.
Mark-up at the rate of 8% is paid by the beneficiary while the remaining cost is to be borne by the government. The government will also bear 5% of the portfolio losses of the participating banks.
`To ensure recovery, banks’ charters provide that the loan must be guaranteed. Accordingly, there is a provision of one guarantor.