Purpose of Scheme:
To provide small business loans in shape of Term loan focus on (but will not restricted to) unemployed youth, especially educated youth looking for establishing or extending business enterprise.

Eligibility Criteria:
All men/women holding CNIC, aged between 21 to 45 years with entrepreneurial potential to start their own business or intend to expand the existing business. Applicant should have some experience of relevant field or holds a business related diploma/certificate pertaining trade of proposed business setup.
Clean Credit History with no write offs / restructuring of facilities / overdue 30+ days in ECIB. However it will be bank discretion to consider any loan application with overdue amount subject to availability of evidence that overdue amount is settled with relevant financial institution.

Pricing/Service Charges:
6.00% p.a.

Tenor:
Maximum 8 years. The tenor will depend upon the nature of business, pattern of income and repayment capacity.

Finance Limit:
Maximum up-to: Rs. 2,000,000/-

Processing Time and Fee:
Processing time will not exceed 15 working days after submission of complete basic documents by the applicant and a non refundable processing fee of Rs. 100 will be charged.

Borrowers Capital:
10% of the loan amount
The borrower’s contribution of equity would be in the form of cash or immovable property and will be required after the approval of loan.

Repayment of Loan:
Service Charges on monthly basis with grace period of 12 months for principal payment

Collateral/Security:
(1) Personal guarantee of high net/credit worthy individuals:

• Must be a resident Pakistani, holding a valid CNIC.
• Any person include blood relation/family member having net worth of 1.5 times of the loan can give the guarantee.
• Can be a permanent Government Employee of at least Grade 15 with minimum 8 years of remaining service at the time of requested loan amount or a high net worth individual with verifiable financial means of at least 1.5 times of loan amount. No net worth is required if guarantor is government employee of BPS-15 or above.
• Age should be 60 years or less at the time of maturity of Loan for a government employee. This condition may be waived by competent authority only for the guarantors who are not government employee.
• Should have clean credit history.
• Guarantor will have to submit copy of their latest wealth statement or the net worth could be ascertained by third party / evaluator appointed by the bank on client’s cost.
• Guarantor can guarantee only one loan at a time and an undertaking in this regard would be submitted by the Guarantor that he/she has not issued any other guarantee for this program or any other type of loan.
• Guarantor can not avail any loan under PMYBL if his/her guarantee has been accepted as security to secure a loan under PMYBL.
• An employee of Summit Bank Limited cannot act as guarantor to secure loan of a borrower availed from SMBL.
• Applicant can also provide guarantee of more than one guarantor (maximum 3) with aggregate net worth of 1.5 times of the requested loan amount.

(2) If a person cannot arrange an eligible guarantor, then alternatively he can provide mortgage of immoveable property in lieu of guarantee.
Property must be in Applicants name and must be free from any charge or lien.
It shall be appraised by SMBL approved valuators and the cost of this valuation shall be borne by the applicant.
The appraised value of property must be equivalent to at least 1.5 times of the total funds required.
Equitable Mortgage in favor of SMBL with 1% token Registration.
Valuation and mortgage charges to be borne by the applicant.
The valuation of the property will be done after sanction of the loan at the time of completion of legal documentation. SMBL approved valuators shall be used for this purpose.
Loan disbursement will be subject to the valuation of the property.

(3) Hypothecation of Business Stocks.

Sector and Products:
All sectors. Borrowers will be encouraged to obtain standardized schemes/projects/undertakings from SMEDA or any other body but this will not be mandatory for the borrower.

The Forms would be readily available both in branches and through dedicated website of the banks.

Downloads
Application Form
Borrower’s Basic Fact Sheet
Guarantor’s Information
Documentation Check List