The State Bank of Pakistan (SBP) has announced setting up of a central portal for Prime Minister Youth Business Loan (PMYBL) Scheme data reporting to prevent multiple loan applications. The SBP has also directed the Executing Agencies (EAs) not to accept PMYBL application of an individual if a similar financing request of the said individual is already under approval process with another EA.
According to IH&SMEFD Circular Letter No 08 of 2016 issued Tuesday, in order to prevent submission of multiple loan applications by a single applicant or multiple guarantees by a single person, a portal for PMYBL data reporting has been put in place by State Bank. The SBP's move will help avoid the double submission of application by an applicant.
The SBP has advised banks working as PMYBL Executing Agencies (EAs) to submit status of loan applications on a daily basis with effect from January 1, 2017 as per the format described by the State Bank. Besides, status and position of loans under PMYBL Scheme may be reported on a monthly basis, from December 2016 onwards, it added. As per new instructions issued by the SBP, EAs will not accept application of an individual for processing PMYBL, if a similar financing request of said individual is already under approval process with another EA.
However, this restriction will remain valid for a period of 90 days from the date of acceptance of the application by the first EA. After the lapse of 90 days, any of the other EAs at their discretion, can also accept PMYBL application of the said individual.
In case the first EA rejects the application earlier than 90 days, it will provide a "No Objection Certificate" (NOC) to enable the applicant to approach other EA for seeking financing under PMYBL Scheme.
Submission of PMYBL applications daily data will run with a one day backlog and EAs are required to report as per the described format of. For example, December 31 2016 data will be submitted on January 1 2017, the circular said. PMYBL data submitted by EAs will be updated in the central portal on a daily basis and will be accessible to EAs free of cost for making enquiries regarding the applicants and guarantors' status from the viewpoint of checking the multiple financing by an individual or multiple guarantees by a single individual against more than one loan. Monthly loan position data will be submitted by EAs within seven (7) working days after the end of each month. Data for the month of December 2016 will be uploaded within seven working days in January 2017.
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