Update (November 26, 2019): Prime Minister Imran Khan has approved a 13-member steering committee for the government’s widely-hailed Kamyab Jawan Programme. The committee comprises Special Assistant to the Prime Minister on Youth Affairs Usman Dar and federal ministers for education, economic affairs and information technology among others.
Headed by the PM himself, the newly-constituted committee will monitor and assist projects starting under Kamyab Jawan Programme.
Update (November 18, 2019): Prime Minister Youth Affairs Program (PMYAP) will reportedly start the disbursement of loans under the Kamyab Jawan Programme in December. As reported by a leading English daily, the loans will be distributed among successful candidates once all the required formalities are completed.
Update (November 13, 2019): Prime Minister Youth Affairs Programme (PMYAP) is reportedly planning to launch a new initiative under its landmark Kamyab Jawan Programme. Named as ‘Start-up Pakistan Programme,’ this scheme will help train one million students from different universities and technical colleges to start their own businesses.
As per the report published in a leading English daily, Start-up Pakistan Programme will provide funding to the Higher Education Commission (HEC) and the National Vocational and Technical Training Commission (NAVTTC) to conduct entrepreneurship and expand the Business Incubation Centres across the country.
Prime Minister of Pakistan Imran Khan has recently launched an innovative and groundbreaking programme to create more self-employment opportunities for the unemployed youth of the country. The aptly named Kamyab Jawan Programme will provide interest-free loans to the young population of Pakistan in a bid to help them start their own business ventures.
The loans will be provided under the flagship programme’s Youth Entrepreneurship Scheme (YES!).
PM’s Kamyab Jawan Programme is expected to benefit over one million youth over the course of five years. For this purpose, PKR 100 billion have been allocated for loan distribution in 45 underprivileged districts of the country on a priority basis.
It is important to mention the Youth Entrepreneurship Scheme is meant for people between the ages of 21 and 45 years. The government has also launched a Kamyab Jawan Programme portal to facilitate young entrepreneurs, who can easily apply for loans ranging from PKR 10,000 to 50 lakh through an online form.
Before we discuss the eligibility criteria and the application process for the soft loan scheme, let’s take a look at the details of Kamyab Jawan Programme and what it aims to achieve.
Kamyab Jawan Programme – An Overview
Kamyab Jawan Programme is a flagship program of the current government that was developed with an aim to create more job opportunities and provide means for young people to be successful in their chosen career paths.
Apart from the Youth Entrepreneurship Scheme, here are the other five schemes that will soon be launched under PM’s Kamyab Jawan Programme:
- Hunarmand Jawan (Skills for All) Program
- Green Youth Movement
- Startup Pakistan Program
- National Internship Program
- Jawan Markaz
One can register for Kamyab Jawan Programme by filling the online form.
Youth Entrepreneurship Scheme
This scheme was created in line with the Prime Minister’s vision to create 10 million jobs for the youth of Pakistan. It allows young people to apply for interest-free loans before graduating to microloans with no collateral and then finally to small loans.
Youth Entrepreneurship Scheme was developed in collaboration with the following organizations:
- Pakistan Poverty Alleviation Fund (PPAF)
- State Bank of Pakistan (SBP)
- Small and Medium Enterprise Authority (SMEDA)
Moreover, these banks will distribute the loans:
- National Bank of Pakistan
- Bank of Punjab
- Bank of Khyber
While PM’s Kamyab Jawan Programme for youth is expected to benefit approximately 52 percent of Pakistan’s population, it will also provide 25 percent of the total loans to young female entrepreneurs striving to run their own business.
Furthermore, existing startups and small enterprises can also benefit from this program.
Kamyab Jawan Eligibility Criteria
Here are some of the requirements you need to fulfil in order to be eligible for loan application under the scheme.
- Those applying for the program must have a valid NIC
- They must be between 21 and 45 years of age at the time of application submission
- The applicants must have entrepreneurial potential
- Citizens as young as 18 can apply for a loan in case of IT or e-commerce related businesses
- In case of businesses that require licensing or certification, the applicants must hold a respective qualification in the form of diplomas, certifications, authorizations, or licenses.
Types of Loans, Pricing and Markup
As mentioned above, young entrepreneurs can apply for three types of loans.
The loans ranging from PKR 10,000 to 1 lakh will be without interest. The loans less than or equal to PKR 5 lakh will be considered Tier-1 loans with a markup rate of 6 percent per annum. Tier-2 will comprise loans greater than PKR 5 lakh with an annual markup rate of 8 percent.
Including a grace period of one year, the maximum tenor of a loan under Kamyab Jawan Programme is eight years.
How to Apply for PM’s Kamyab Jawan Programme
The Kamyab Jawan Programme registration process is completely online, which means applicants are not required to fill and submit any physical forms.
Here is how you can apply for loans under the unique scheme.
- Visit the official website of Kamyab Jawan Programme
- Click on the Youth Entrepreneurship Scheme tab
- Once the webpage for the scheme opens up, click on the green tab that reads ‘Apply Online for Loan.’ You’ll be directed to a bank loan form
- Fill in the required details. Please note it is mandatory to fill all sections in the Kamyab Jawan Programme online form.
- You will have to select the type of loan, your purpose for applying, your selected bank and the amount of loan. The online system will automatically select the bank branch closest to your given address as the designated branch.
- Make sure to enter your exact CNIC and issuance date. Failure to do so will lead to the rejection of your application.
- Once you’ve proofread the form to make sure there aren’t any errors, click to submit it on the portal.
- You will soon receive an SMS confirmation alert on your provided mobile phone number.
Applicants are not required to attach any documents while submitting your online application form. Furthermore, you cannot make any corrections or changes in the form once it’s been submitted.
Kamyab Jawan Programme Security and Collateral
While no collateral is required for Tier-1 loans that are less than or equal to PKR 5 lakh, an applicant must provide collateral for Tier-2 loans greater than PKR 5 lakh.
The participating banks are supposed to decide the collateral.
However, the Kamyab Jawan Program has put together an indicative list of collaterals a bank might require.
- Mortgage of applicant’s residential, commercial or agricultural property.
- Mortgage of third party property
- Hire purchase of vehicles
- Lien on national savings certificates and marketable securities among others
- Pledge of gold ornaments and hypothecation of stocks and receivables
- In the case of joint-stock companies, a registered charge on business assets
- Third-party guarantors
Please note that an applicant’s spouse, parents, siblings, children and in-laws cannot act as a guarantor for the loan. Moreover, the third-party guarantor will not be able to apply for a loan under the Youth Entrepreneurship Scheme themselves.
Kamyab Jawan Programme Application Process Time
As per the official website, all submitted applications will be processed within 30 working days. However, you can contact your designated branch or visit a SMEDA helpdesk at your selected bank for more guidance on PM’s Kamyab Jawan Programme 2019.
Although the program was recently launched, it has reportedly broken all the previous records. As per the data shared on PM Imran Khan’s social media page, the government received approximately 190,000 applications within 72 hours after the scheme went live.
Meanwhile, for more information on the schemes launched by the present government, such as Naya Pakistan Housing Program, stay connected to Zameen Blog – Pakistan’s top real estate and lifestyle blog.
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