Youth Entrepreneurship Scheme (PMKJ-YES)

Government of Pakistan has introduced Prime Minister’s Kamyab Jawan Youth Entrepreneurship Scheme (PMKJ-YES) in consultation with State Bank of Pakistan with the main objective of providing self-employment opportunities for men & women having entrepreneurship potential. The scheme provides many inherent benefits to end users such a subsidized mark up rates, long-term re-payment tenor as well as unrestricted usage in a wide spread.

PMKJ-YES offers considerable potential for Small & Medium Enterprises and individuals who want to pursue sustainable growth in their respective businesses in the days to come.

Small Business Loans focused on (but not restricted to) unemployed youth looking for establishing fresh business or extending their existing businesses. The scheme is aimed to provide subsidized loans to educated/unemployed youth of age to establish their own businesses & to further augment their existing enterprises


  • Features & Benefits

    PMKJ-Yes has following benefits

    i. Subsidized Markup Rate
    ii. Loan Types: Loan Amount Limit (PKR Million): Obligor Pricing (% p.a.)
    Tier I 0.1 to 1.0 3%
    Tier II 1.0 to 10 4%
    Tier III 10 to 25 5%
    iii. Facility up to 08 years
    iv. Repayment by Monthly installment with a grace period of 12 months
    v. Loan amount from PKR 100,000 to 25 million
    vi. Quick processing of 30 Days
    vii. Facility available from all the branches of ABL
    viii. Loan processing fee of Rs 100/-only


  • Loan Type

    • Term Loan
    • Working Capital Loan
    • Leasing/financing of locally manufactured vehicles. Only one vehicle per borrower is allowed.


  • Eligibility Criteria

    1. Age

    • Age Minimum: 21 Years,
    • Maximum: 45 Years with entrepreneurial potential are eligible.
    • For IT/ E-Commerce related businesses, the lower age limit will be 18 Years

    2. Business type Small enterprises (start ups and existing businesses)

    • Covering All sectors and products including agriculture.


  • Security Requirements

    Tier Loan Amount Security
    T-I Rs. 0.1 M to Rs. 1 M Clean loan
    T-II Above Rs. 1 M up to Rs 10 M Secured loan
    T-III Above Rs. 10 M up to Rs 25 M Secured loan

    1. Equity

    For New Business

    T1 loans – 90:10
    T2 & T3 loans – 80: 20

    For Existing Businesses:

    Nil for all tiers


  • Required Documents

    • Loan Application Form (English and Urdu)
    • Two recent Passport size Photographs.
    • Valid CNIC/SNIC of obligor Along with CNIC/SNIC NADRA Verisys. Or biometric verification as per AML/KYC/CFT guidelines of SBP by the branch
    • Feasibility Report
    • Financials of the business as per Bank’s Credit Policy.
    • Clean E-CIB of the applicant / obligor with no current overdues / write-off history to be obtained.
    • Undertakings from the obligor in compliance of relevant SBP PRs.
    • In case of collateral (immovable property / liquid securities) valuation & other formalities will be administered in accordance to CP & CPM.
    • Undertaking from the obligor to avail facility from one bank only and not to become a guarantor for loans to other persons under the scheme.
    • Close relatives of ABL employees are not eligible to apply for financing under this scheme to ABL. An undertaking from Obligor confirming the same is required.
    • Two References CNICs

    Other Documents (if required)

    • Educational / Technical diploma Certificates / Experience Certificates
    • Valid Driving License
    • Valid license for business operations.
    • NTN and Latest Tax returns.
    • Proof of any other source of income
    • Legal Status documents (in case of partnership and companies etc.)
    • Letter from Chamber / Trade Body / Union / Association
    • Bank Statement
    • Copy of Utility bills
    • Any other document required by the approving hierarchy.


  • Frequently Asked Questions

    • What is Kamyab Jawan Scheme?

    Government of Pakistan has introduced Prime Minister’s Kamyab Jawan Youth Entrepreneurship Scheme (PMKJ-YES) in consultation with State Bank of Pakistan with the main objective of providing self-employment opportunities for men & women having entrepreneurship potential. The scheme provides many inherent benefits to end users such a subsidized mark up rates, long-term re-payment tenor as well as unrestricted usage in wide spread industrial/trade activities for start ups and augmenting existing businesses alike

    • What is PMKJ-YES Loan?

    PMKJ-YES offers considerable potential for SME’s and individuals who want to pursue sustainable growth in their respective businesses in the days to come.

    Small Business Loans focused on (but not restricted to) unemployed youth looking for establishing a fresh business or extending their existing businesses.

    • Who can Apply?

    All men & women having entrepreneurship potential want to avail self-employment opportunities.

    • For what purpose the loan can be applied?

    Small enterprises (start ups and existing businesses) as per definition of SBP and owned by youth as per above mentioned age brackets are also eligible

    • What kind of loan can I apply?

    Long Term Loan/Working Capital Loan including Murabaha and leasing/ financing of locally manufactured vehicles for commercial use. Only one vehicle per borrower is allowed. No RF and BTF will be allowed.

    • What is the loan amount?

    The Size of the loan is segregated into three tiers, as under:

    Tier 1 (T1) loans- Rs 100,000 to Rs. 1 million

    Tier 2 (T2) loans- Above Rs 1 million and up-to Rs 10 million

    Tier 3 (T3) loans-Above Rs 10 million and up to Rs 25 million

    • How many facilities can I get at a time?

    An obligor can avail the facility only from one bank under this Scheme and an undertaking in this regard should be obtained from the obligor.

    • From where can I get this loan?

    All Branches of ABL.

    • How to apply for this loan?

    Via PMKJ-YES Portal https://kamyabjawan.gov.pk/BankForm/newApplicantForm.

    • What documents are required with application?

    As mentioned above

    • Is there any age restriction?

    Minimum: 21 Years,

    Maximum: 45 Years with entrepreneurial potential are eligible.

    For IT/ E-Commerce related businesses, the lower age limit will be 18 Years

    Above age limit condition is applicable to individual and sole proprietors. In case of all other forms of business, including partnership and companies, only one of the owners, partners or directors must be in the age bracket prescribed above

    • In which cities the loan can be applied?

    Anywhere in Pakistan, where Allied Bank Branch is available.

    • For what type of business can one apply?

    Small enterprises (startups and existing businesses) as per definition of SBP and owned by youth as per above mentioned age brackets are also eligible.

    • Can I apply for a vehicle?

    Yes, locally manufactured vehicles for commercial use.

    • Can a loan be applied on Joint name?

    No Loan can only be applied in Single Name.

    • Can a company can apply for a loan?

    In individual name. In case of various forms of business, including partnership and companies, only one of the owners, partners or directors must be falling in the age bracket prescribed above.

    • How to repay the loan?

    Monthly instalments after grace period (if any).

    • What is the loan processing charges?

    Loan processing fee of Rs 100/- (non-refundable)

    These charges will be inclusive of NADRA online CNIC, e-CIB and bio-metric verification fee.

    • For how long can I avail this loan?

    Term Loan: Minimum 01 Year and Maximum 08 Years

    Working Capital: Up to 01 year

    Grace period up to 12 months (applicable for principal of TL only)

    • What are the equity requirements?

    For New Business

    T1 loans 90:10
    T2 & T3 loans 80: 20
    For Existing Businesses: Nil for all tiers

    The obligor’s contribution of equity would be in the form of cash or immovable property and will be required after approval of the loan, prior to disbursement.

    • Is there any security requirement?

    Security arrangements will be as under:

    • T1 loans: Clean, however, only personal guarantee of the obligor
    • No third-Party guarantee will be acceptable
    • T2 & T3 loans: Financing extended under T2 & T3 loans must be secured against collateral acceptable to the bank as per Bank’s Credit Policy. Defective properties as defined in Bank’s Credit Policy shall not be accepted under this Product Program. The policy with respect to third party collateral shall be also in line with the bank’s credit policy
    • Vehicle financed under T1, T2 and T3 to serve as collateral.

     

    • What is the pricing of this loan?
    Loan Types: Loan Amount Limit

    (PKR Million)

    Obligor Pricing

    (% p.a.)

    Tier I 0.1 to 1.0 3%
    Tier II 1.0 to 10 4%
    Tier III 10 to 25 5%