Government of Pakistan has introduced PM Youth Business & Agriculture Finance Scheme (PMYB&AFS) in consultation with State Bank of Pakistan with the main objective of providing self-employment opportunities for all citizens having entrepreneurship potential. The scheme provides many benefits to end users such as subsidized profit / rental rates, long-term payment tenor.
PMYB & AFS has following benefits
| 1. | Subsidized Rates | ||
| 2. | Financing Types
· Term Finance · Working Capital Finance · Leasing (Ijarah) of locally manufactured (new or used) vehicles for commercial use. |
||
| 3. | Financing Tiers | Finance Amount Limit (PKR Million) | Customer Pricing (% p.a.) |
| Tier II | 0.5 and up to 1.5 | 5% | |
| Tier III | 1.5 and up to 7.5 | 7% | |
| 4. | Eligibility Criteria
1. Age
2. Business type
|
||
| 5. | Tenor:
Up to 8 years for long term/development finance with maximum grace period of up to one year. For working capital/production finance and Murabaha under T2 and T3, tenor will be up to 5 years. |
||
| 6. | Payment:
Equal Monthly or Quarterly installments. |
||
| 7. | Equity:
For New Business T II Financing – 90:10 T III Financing – 80: 20 For Existing Business; Nil for all Tiers |
||
| 8. | Quick processing of 45 Days | ||
| 9. | Facility available from All Branches of ABL – IBG. | ||
| 10. | Processing fee of Rs 100/- only | ||
- Financing 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 Assessment Sheet (where required)
- Financials of the business as per Bank’s Credit Policy.
- Clean E-CIB of the applicant / customer with no current overdues / write-off history to be obtained.
- Undertakings from the customer 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 for facility only from one bank only and not to become guarantor for financing to other persons under the scheme.
- Undertaking from the Customer shall be obtained stating that he/she is not a blood relative of ABL employees. Blood relatives of ABL Employees are not eligible to apply for financing under this scheme.
- Declaration from the SME to ensure that the accumulated clean exposure on an SME does not exceed the prescribed limit
- Two References CNICs
Other Documents (if required)
- Educational / Technical Diploma certificates / Experience Certificate
- Valid Driving License of applicant or of the person authorize to drive the vehicle
- Valid license for Business Operations.
- NTN and Latest Tax return.
- Proof of any other source of income
- Legal Status documents (in case of partnership and companies etc.)
- Letter from Chamber / Trade Body / Union / Association
- Copy of Utility bills
- Bank Account Statement(s) (Minimum 3 months for customers having account)
Additional documents for Agriculture Sector (where required):
- Three passport size Photographs of the applicant
- Farm/Site Visit Report
- List of Successor(s) /legal heir(s)
Other Documents (where applicable)
- Undertaking regarding seize/hold financed asset in case of default
- Documentary Evidence for the arrangement of veterinary doctor duly vetted by ACO/BM
- Vaccination Certificate
- Legal Opinion
Any other document required by the approving level.