Prime Minister’s Youth Business Loan Scheme Process and Details for business Plan
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.
Females age between 21 to 45 year having ability 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.
Pricing / Markup Rate : 8%
Maximum 7 years. The tenor will depend upon the nature of business, pattern of income and repayment capacity.
Minimum : 500,000 Rs.
Maximum : 2,000,000 Rs.
Processing time will not exceed 15 working days after submission of complete basic documents by the applicant.
Borrower’s Capital : 10% of Loam Amount
Collateral / Security:
From Rs. 500,000/- to Rs 749,999/- will be secured against Hypothecation of stocks/Assets & two personal guarantees of high net/credit worthy individuals including one of government servants minimum in BPS 17.
From Rs. 750,000/= up-to Rs 2,000,000/= will be secured against tangible securities such as Lien on deposit certificates, property mortgage, pledge of gold ornaments, Pledge of stocks.
Repayment of the Loan
Equal monthly installments with grace period of 6 months for principal payment Sector and Products
Sectors 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.