Yesterday, Punjab government has decided to launch ‘Punjab Credit Guarantee Scheme’ (PCGS) aimed at offering loans to youth who are interested to initiate their business. The scheme will be launched under the Punjab Industries Department to provide loan up to Rs 3million to youth on soft conditions.
Punjab Minister for Industry and Trade Mian Aslam Iqbal stated that initial paperwork had been completed whereas Prime Minister (PM) Imran Khan will formally launch the scheme soon. He added that women could obtain loans easier conditions.
Those who are interested to acquire a loan will have to submit their business idea which they are intended to start through an online application. The committee will review the application and if approves the idea, the amount of the loan will be issued.
Under the scheme, a male applicant will invest 30pc of the total amount required for initiating business whereas the rest of 70pc would be provided by the provincial government in the form of a loan. Whereas in case of a female aspirant, she will have to bear 20pc of the total amount whereas rest of the 80pc would be provided by the committee.
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Once acquired, the borrower would be exempted from paying any installment till one year. The loan will have to be paid back within five years with one year of a grace period and the provincial department will bear three percent of the interest on the loan.
“Universities’ students and entrepreneur can also benefit from the scheme”, the minister was quoted as saying.
The minister added that govt had apportioned Rs 550 million amount for the scheme which is in the initial phase.