Agriculture, microfinance added to youth loan scheme

The government on Monday while renaming and introducing some changes to the Kamyab Jawan Programme — launched during the PTI government in 2019 — added a couple of new features to the initiative aimed at facilitating the youth to set up or expand their businesses. Categories of ‘agriculture’ and ‘microloans’ have been added to the ‘Prime Minister’s Kamyab Jawan Youth Entrepreneur Scheme (PMKJ-YES)’, which has been rechristened ‘Prime Minister’s Youth Business and Agriculture Loan Scheme (PMYB&ALS)’. “The new components of interest-free microloans and agriculture loans have been added in the scheme,” said a circular issued by the State Bank. Under the changes, the size of loans has been segregated in three tiers. Tier 1 offers up to Rs0.5m in loan, tier 2 offers Rs0.5m to Rs1.5m, while tier 3 offers loan from Rs1.5m to Rs7.5m. Working capital up to Rs7.5m can be availed; women’s share in facility up by 5pc The term ‘loans’ or ‘working capital loans’ include Murabaha and leasing or financing of machinery and locally manufactured vehicles for commercial use. Only one vehicle per borrower is allowed under the scheme.