Please refer to IH&SMEFD Circular No. 10 of 2013 dated November 18, 2013 and IH&SMEFD Circular Letters No. 08 and 09 of 2013 and IH&SMEFD Circular Letters No. 01 & 08 of 2014 respectively on the captioned subject.

In continuation of the instructions issued vide above Circular/Circular Letters, following additional parameters have been approved under Prime Minister’s Youth Business Loans Scheme:

1. Guarantor Qualification Criteria.

Guarantor(s) must
A. have individual or collective net worth of 1.5 times of requested loan amount. 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.

OR

B. be Government Employee of BPS-15 or above with minimum 8 years of remaining service at the time of providing the guarantee. No net worth required if guarantor is government employee of BPS-15 or above.

Either of the two guarantors in (A) and (B) above will also fulfill the following conditions:

• Clean Credit history
• Not an employee of Bank working as Executing Agency for PMYBL Scheme
• Cannot be the applicant

The following points in this respect may also be noted:

• Blood relative can be a guarantor:
• It is not mandatory for the guarantor to reside in the same city of the applicant.
• There is no age limit for guarantors who are not government employees

C. Those borrowers, who are seeking loans for expansion of their existing businesses or for setting up new businesses and have immovable property in their own name valued at least 1.5 times of the requested loan amount, can offer this property as security for the loan in lieu of guarantee.