Banks have made fresh disbursements of Rs 1.02 billion to 895 borrowers on account of Prime Minister's Youth Business Loans (PMYBL) scheme during the first quarter (Jan-March) of this calendar year (CY16). With this addition, the cumulative disbursements under PMYBL climbed to Rs 7.429 billion at the end of March 2016, recording a growth of 16 percent over Dec-15 quarter.
According to PMYBL Quarterly Review for Jan-March 2016 issued by the State Bank of Pakistan (SBP), some 274 PMYBL applications were received by the Executing Agencies (EAs) under the scheme during the quarter under review. As of 31st March, 2016, with addition of these 274 applications, cumulative number of applications received under PMYBL reached 63,965.
Out of total received applications share of male and female applications was 86 percent and 14 percent, respectively. Out of 63,965 applications, 54,924 applications were received from male applicants while 9,041 applications were received from female applicants.
As of 31st March 2016, an aggregate amount of Rs 16.539 billion had been sanctioned, which is Rs 318.6 million higher than that of 31st December, 2015. In the quarter under review, NBP sanctioned Rs 215 million while remaining EAs sanctioned Rs 103.6 million under PMYBL.
During Jan-March, 2016 quarter, fresh disbursements of Rs 1.02 billion were made to 895 borrowers. The total number of PMYBL beneficiaries was 7,816 at the end of Mar-2016 quarter. Out of cumulative disbursements of Rs 7.429 billion, NBP is the major player as it has disbursed some 97 percent or Rs 7.195 billion, while other sixteen EAs disbursed only Rs 234 million having a slight share of 3 percent. Meezan Bank Limited sanctioned an amount of Rs 48.31 million so far which made it the third largest bank after NBP and FWBL in terms of sanctions.
As of 31st March, 2016, out of cumulative number of received applications, 75 percent were received from Punjab, while 9 percent were received from each of Khyber Pakhtunkhawa and Sindh, around 2 percent from each of Azad Jammu & Kashmir, Islamabad and Balochistan and 1 percent from Gilgit-Baltistan.
Under PMYBL Scheme, loans up to Rs 2,000,000 are being provided through the banking system at service charges of 6 percent per annum to unemployed youth for establishing or extending business enterprises. The rate of return for banks working as Executing Agencies (EAs) for PMYBL is one year KIBOR+500 bps with KIBOR to be reset every year. Portfolio risk coverage of up to 5 percent is also available under the Scheme for EAs.
During Jan-Mar, 2016 quarter, with addition of one more bank, ie, Faysal Bank Limited, number of PMYBL executing agencies increased to 17. Among seventeen (17) EAs, three are public sector banks and 14 are private banks.