Small Business Loans Scheme

business loan

PM Loan Scheme for businesses that need a bigger amount. This scheme will be offered to those graduated students who have ideas to start business and can provide employment o others also. PM Loan Scheme is not interest free. The youth will get this loan at discounted interest rate at 8% per year.

Small Business Loans Scheme will focus on unemployed educated youth aspiring to establish new enterprises.

Eligibility criteria:

An individual, male or female, of age not more than 45 years and has an entrepreneurial potential is eligible to apply for the scheme. The minimum age required too apply for the loan is 21 years.

Focus on women:

It is believed that increased economic participation by women can play a significant role in national development. In an attempt to encourage the same, 50% of loans will be given to female borrowers.

In addition, independent economic activity will empower Pakistani women both socially and in terms of finances.

Debt-Equity ratio:

A 90:10 debt-equity ratio would be followed with tenure of up to 7 years.


It is fixed at 8% for the borrower. However, the difference in the cost will be paid by the Federal Government at KIBOR+500 bps. The remaining 7% interest rate will be pad by Govt. of Pakistan.


The State Bank of Pakistan shall explore providing 50% refinance at the risk of participating banks.

Risk Sharing:

Government will share 50% of losses subject to a maximum of 10% of the loan amount.

Number of Loans:

100,000 loans would be disbursed under the scheme. Balloting will be done every month and almost 16,000 people will be given loans.

Size of Loan:

The amount of each loan can range from Rs.0.1 million to Rs 2.0 million.

Average Loan Size:

The average loan size would be Rs. 1.25 million.

Allocation in Budget 2013-14:

Rs. 5 billion have been allocated in the budget for the financial year 2013-2014. During the remaining seven months of this fiscal year, 1 lakh people will get benefit.

Executing agency:

In the initial phase of the scheme, the National Bank of Pakistan and First Women Bank would act as the executing agencies of the scheme under the guidance and supervision of the State Bank of Pakistan. Other Banks will be encouraged to join.

Sectors and Products:

The scheme encompasses all sectors of the economy. Standardized schemes/projects/ undertakings will be designed by SMEDA. Additionally, projects designed by private sector service providers and individuals are included in the scope of the scheme.

12 thoughts on “Small Business Loans Scheme

  1. Assalam u alikum sir main 20 saal se rent k ghar pe rehta hon sir pura ni hota mehbani farma kar mujhe itna qarza de dain main apna ghar le lon main bhut pareshan hon behno ki shadi bhi karani hai meri madad karain ,abu ka kam kabi hai kabi nae…

  2. Ass’salam-o-alaikum

    Mr.Prime Minister
    Name is Mohammad Shoaib
    from; Hyderabad
    i want to a start small business?
    i m inter passed

  3. it is a very great chance for the all those people who have a problem in their own residence, business, or achieve their those goals that they had not fulfilled for a long time.
    I will thank you. I also agree to the decision of government.

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