NBP sets a target of Rs 15b for PMYBL scheme this year
The management of National Bank of Pakistan (NBP) is set to promote the government envisaged scheme as pioneer and trendsetting business ventures for entire banking industry, setting an ambitious target of Rs 15 billion for financial year 2015-16 for Prime Minister Youth Business Loan (PMYBL) scheme which is three times high amount than it disbursed in its first year.
According to the official sources, the bank is all set to hold a balloting process after carrying out short-listing of many of the aspiring beneficiaries as per criteria having increasing numbers after awareness and promotion of the scheme. The bank is aggressively working with different partners of various sectors to streamline channels for beneficiaries providing them dealership and franchises utilizing financing of PMYBL schemes.
We have been waiting for the government's go-ahead signal to select borrowers and disburse a colossal among beneficiaries, officials said. The interest rate for the scheme has revised which also impacted positively on the youth wishing to start their business.
As per the announcement in the 2015-16 Federal Budget, the markup rate for the customers will be 6% p.a., however formal communication of the same is awaited. The overall financing rate remains at K+5%, whereby the differential between the overall rate and the cost to the customer will be borne by the Government through subsidy.
Irtiza Kazmi, Executive Vice President NBP said the bank disbursed over 6,108 borrowers have been provided loans, cumulatively amounting to Rs5.117 Billion under this scheme.
Till now nine MoUs have been signed by NBP with various companies but these agreements do not comprise provision of products only; rather a substantial portion of these corporations will be extending their services to facilitate PMYBL borrowers.
The bank is witnessing exceedingly increasing interest of entrepreneurs and corporation in this scheme which is evident the overwhelming number of appli- cations submission and proposal of various companies to do business with NBP.
He added that over 100 business models have been designed along with various corporations in order to provide loans to the applicants along with business opportunities hence they could establish themselves at the earliest to perform their role in the economy. The bank has not only established the scheme as successful but it also paved the way for private banks to participate in the scheme with the policy of mitigating risks and disbursing loans for earning profits. The interest earning of the banks is not as bad receiving 9 percent from the beneficiaries and 6 percent from the government in the scenario when the avenues of making money are limited.