Banks have disbursed over Rs 18 billion under the Prime Minister Youth Business Loan (PMYBL) Scheme upto March 2017. Total number of applications received by the Executing Agencies (banks) under PMYBL Scheme as of March 31, 2017 stood at 78,939. Out of the total applications received so far under the scheme, 87 percent were from male applicants while the share of female applicants was 13 percent.

On quarter on quarter basis, a growth of two percent was observed and total disbursed amount cross Rs 18 billion mark end of March 2017. Cumulative disbursements of Rs 18.039 billion have been made to 18,015 beneficiaries' upto March 31, 2017 under the scheme compared to Rs 17.705 billion was made to 17,690 applicants' upto December 2016.

Moreover, since the launch of the scheme, number of sanctioned applications stood at 21,734 as on March 31, 2017. The sanctioned amount under PMYBL increased from Rs 21.132 billion at the end of December, 2016 to Rs 21.663 billion at the end of March, 2017 registering a growth of three percent.

During the quarter Jan-Mar, 2017, executing agencies under PMYBL received 4,479 new applications registering a growth of 6 percent over Oct-Dec, 2016 quarter. A total disbursement of Rs 335 million was made to 325 borrowers during Jan-Mar 2017 quarter under PMYBL with major contribution from National Bank of Pakistan (NBP). A year-on-year growth of 143 percent was observed with respect to loans disbursed under the scheme with the total disbursed amount increasing from Rs 7,429.5 million (7,816 borrowers) at the end of March, 2016 to Rs 18,039.5 million (18,015 borrowers) at the end of March, 2017.

The largest number of applications was received by NBP followed by JS Bank that showed a significant improvement as the number of applications received by JS Bank recorded a growth of 293 percent during the quarter under review. With the addition of 4,479 new applications, cumulative applications received under PMYBL as of March 31, 2017 stood at 78,939. Of these 78,939 applications, 68,293 applications (87 percent) were received from male applicants and 10,646 (13 percent) applications were received from female applicants.

It may be mentioned here that the Government of Pakistan, being cognizant of the important role played by youth and small businesses in the economic development, introduced PMYBL Scheme in 2013 with the aim of providing youth the opportunities of financial independence through self-employment. Under the Scheme, small businesses are provided loans upto Rs 2,000,000/- at a service charge of six percent.

Copyright Business Recorder, 2017