Incentive Schemes for SMEs & Other Sectors
 
 
 Prime Minister's Youth Business and Agriculture Loan Scheme (PMYB&ALS)
 


Financing under PMYB&ALS is available for all citizens of Pakistan holding CNIC, aged between 21 and 45 years with entrepreneurial potential. For IT/E-Commerce related businesses, the lower age limit will be 18 years.



Above age limit condition is applicable on individual and sole proprietors. In case of all other forms of business including partnership and companies, only one of the owners, partners or directors must be in the age bracket prescribed above. Small and Medium Enterprises (startups and existing businesses) owned by youth as per above mentioned age brackets are also eligible.

In case of agriculture, farmers’ classification as per SBP’s “Indicative Credit Limits & Eligible Items for Agriculture Financing 2020” will be applicable.


Financing is available for long term loan /working capital loan including murabaha and leasing /financing of locally manufactured vehicles for commercial use. Only one vehicle per borrower is allowed. A borrower in food franchise and distribution business may avail financing for more than one vehicle. Upto 65% of total financing limit can be availed for Civil Works. For agriculture, production and development loans are eligible.

Under PMYB&ALS, financing is segregated into three tiers. Under Tier-1 (T1), loan limit is upto Rs 0.5 million. Under Tier-2 (T2), loan limit is from above Rs 0.5 million and upto Rs 1.5 million and under Tier-3 (T3), loan limit is from above Rs 1.5 million and upto Rs 7.5 million.

All T1 loans are mark up free loans. For T2, mark up rate is 5 percent and for T3, mark up rate is 7 percent.


Maximum loan tenor for T1 loan is 3 years and repayment will be in equal monthly installments. However, in case of crop loan, tenor will be upto 1 year and repayment will be lump sum on or before maturity, tied-up with the crop cycle. Maximum loan tenor for T2 and T3 loan is upto 8 years including grace period of upto one year. For working capital/production loans and murabaha under T2 and T3, tenor will be upto 5 years. Banks will have the option to lend working capital/production loans wherein only markup will be payable during first 2 years and thereafter both principal along with the markup will be paid in next 3 years making it total repayment period of upto 5 years.


For new businesses, Debt-Equity ratio for T1 loans is 90:10 and for T2 and T3 loans is 80:20. For existing businesses, Debt-Equity ratio is Nil for all tiers. The borrower’s contribution of equity would be in the form of cash or immovable property and will be required after approval of the loan.


T1 loans and T2 loans will be clean, however, only personal guarantee of the borrower is required. For T3 loans, security requirements is as per executing banks’ own credit policy. Vehicle(s) financed under T1, T2 and T3 to serve as collateral. In addition, rules & regulations of SECP/SBP shall be complied with by MFBs/MFIs.
Frequently Asked Questions (FAQs)
For detailed features of the scheme, please click the following circular issued by SBP:

IH&SMEFD Circular No. 12 of 2022

 
  •  
    SBP Policy Rate
    22.00% p.a.
     
    SBP Overnight
    Reverse
    Repo (Ceiling) Rate
    23.00% p.a
     
    SBP Overnight
    Repo (Floor) Rate
    21.00% p.a.
  •  
    Weighted-average Overnight Repo Rate
    As on 27-Feb-24

    21.25% p.a.
    KIBOR
    As on 28-Feb-24
    Tenor BID OFFER
    3-M 21.54 21.79
    6-M 21.49

    21.74

    12-M 21.99 21.49
     

  • MTBs
    Tenor Rates
    3-M 21.6998%
    6-M 20.3952%
    12-M 20.3290%
    (as on Feb 21, 2024)
    Fixed-rate PIB
    Tenor Cut-off Rates
    3-Y 16.7999%
    5-Y 15.5499%
    10-Y 14.5000%
    15-Y No Bid
    20-Y No Bid
    30-Y No Bid
    (as on Feb 14, 2024)

    Floating-Rate PIBs (Quarterly Coupon)

    Tenor Cut-off Price
    2-Y No Bid Received
    3-Y No Bid Received

    Floating-Rate PIBs
    (Half-yearly Coupon)

    Tenor Cut-off Price
    5-Y 95.8557
    10-Y 93.6342
    (as on Feb 21, 2024)
    GIS FRR
    Tenor Cut-off Rental Rate/Price
    3-Y 100.2842
    5-Y 100.0022
    GIS VRR
    Tenor Cut-off Margin/Price
    3-Y 99.0800
    5-Y 98.7600
    (as on 21-Dec-2023)
  • PIB Auction
    (Fixed Rate)
    13-Mar-24


    MTB
    06-Mar-24

    Floating Rate PIB
    (Semi-Annual Coupon)


    06-Mar-24
    Floating-rate PIB
    (Quarterly Coupon)

    06-Mar-24
    GIS VRR
    Jan-24

    GIS FRR
    Jan-24

    As on 16-Feb-24
    SBP’s Reserves
    8,012.8
    Bank’s Reserves
    5,085.0
    Total Reserves
    13,097.8

  •  
    As on 28-Feb-24
     
    M2M
    Revaluation Rate
    279.1191
    Weighted
    Average Rate
    Bid: 279.0164
    Offer:

    279.4562

       
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