President National Bank of Pakistan Syed Ali Raza said on Thursday that NBP would make all arrangements to provide loans to the deserving youths countrywide under 'Rosgar Scheme.' Speaking at a PTV programme he said, initially the NBP would be the only loaning source, but with the passage of time more banks would enter in the business.
He said that loaning for small enterprise is a viable business which benefits both the lender and the receiver. The NBP President said that in the first phase, a loan up to Rs 100,000 would be extended to the qualifying borrowers to do business in transport, utility stores and the mobile phones public call offices.
Later, the circle of business under this programme would be expanded, he added.
He said that a survey conducted by the NBP shows that 17-18 percent of the countries population qualifies for the loans under this scheme adding, during the next five years 15-20 percent of the deserves would be facilitated by the NBP only.
With the entrance of other banks in the business the number would of course go very high, he added. He said, the NBP would launch loaning process from 130 branches countrywide while the application forms would be available at all the branches.
He hoped that 10-12 other banks would enter in the business in next 1-2 years.
He said the borrowers would have to contribute 15 percent of the required amount of loan while the rate of mark-up would be 12 percent.
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