The government of Punjab has taken the decision to introduce a “credit guarantee scheme” for the facilitation of soft loan to the youths interested in starting their own businesses.
The credit line amount facilitation under the scheme would be up to three million rupees. The scheme would be introduced under the Punjab Industries Department, loans would be given to the women on easier terms and conditions.
The Minister of Punjab for Industries—Mian Aslam Iqbal said that the department has finished the initial homework for starting the scheme.
The minister while providing details regarding the scheme said that the youth interested in acquiring the credit facility under the scheme would be needed to present their ideas for starting businesses to a committee that would be formed by the department.
The committee would be reviewing the business ideas and once the complete pros and cons of the ideas are analyzed and judged then the committee would either approve the idea or disregard it. If the idea gets approval from the committee, the youth would then be given the needed credit facility.
The applicant for the credit guarantee scheme would be required to tolerate thirty percent of the complete investment while the remaining seventy percent would be given by the department in the form of a loan. For the females, the ratio of investment by the applicants has been fixed at twenty percent while the remaining eighty percent would be given by the department.
The loan needs to be returned back in the span of five years with one year grace period. The Industries Department would be bearing 3 percent of the interest on the loan.
The minister also informed that five hundred and fifty million rupees have already been allocated for the scheme, which would further be boosted to one billion rupees later on.
University students are also eligible to apply for this loan facility alongside the ones who are already engaged in doing some kind of business would be eligible to apply for expanding their businesses.