BoK
Ehsaas Naujawan Programme
A Government of Khyber Pakhtunkhwa and The Bank of Khyber initiative for the promotion and inculcation of entrepreneurship culture & employment generation through easy access to financial services for the youth having smart and viable ideas.
Particulars and Key Features
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Target Area: All Districts of Khyber Pakhtunkhwa including Merged Districts.
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Loan Types: Terms Loans (Demand Finance)
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Financing Limit: 1.0 million to 5.0 million per entity depending on the business potential and entity/applicants' capabilities.
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Loan Tenor: Up to 08 years with a maximum grace period of up to 20 months. To be disbursed in tranches subject to successful completion of required formalities.
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Mark up: Mark up Free
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Legal Status: The entrepreneurs need to form a registered firm/Partnership with 03 to 05 individuals. All the partners/directors would be solely responsible for the utilization and recovery of loans.
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Debt to Equity Ratio: 90:10 (fixed assets/existing stock in use of business may be taken as equity). In the case of a new business, cash injection in the shape of a deposit in an account is required.
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Security Requirements:
- Personal guarantee of all partners of the firm.
- Corporate guarantee of the firm.
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Target Groups/Sectors: All sectors with a special focus on IT, Services, Retail Trading, Manufacturing, businesses in Enterprise clusters, and start-ups. Any other legal, viable, and feasible plan including:
- Education Sector
- Technology and AI Sector
- Healthcare & Biotechnology
- Agricultural-related off-farming businesses (value-chains)
- Skin Care Clinics including Fitness Gyms
- Media, Photography, and Entertainment
- Tourism, Hoteling, and Restaurants
- Green Energy Businesses
- Any other skill-based micro & small-scale enterprising idea or existing business with economic viability & sustainability potential
Frequently Ask Questions
Q1: Who are eligible for this loan?
Ans: All permanent residents in age bracket of 18 to 35 and intends to establish their businesses.
Q2. Which areas of KP are included in scheme?
Ans. All districts of the province including newly merged districts.
Q3: Can an Individual entrepreneur apply ?
Ans: NO. Applicants shall form a business concern/company/partnership having at least 3 to 5 partners.
Q4: What is the Maximum Loan Size of the Scheme?
Ans: PKR 1.0 M to 5.0 M per group/company/AOP, depending on the business potential and applicant capabilities.
Q5: What type of businesses are included?
Ans: Any feasible, viable and acceptable business idea which shall be assessed by a team of professionals.
Q6: Can Startup apply?
Ans: Yes, both Potential startups and (existing businesses having growth potential and age less than two years) are eligible.
Q7. What are Loan and Grace Periods for loans under INRS?
Ans: Up to 8 years with maximum with grace period of up to 20 months. The loan would be disbursed in tranches subject to successful completion of required formalities.
Q8: Is there any markup or service charge ?
Ans: NO. this is soft loan with no mark up or any other charges.
Q9. How Can I/we apply for loan under this scheme?
Ans: You can apply for loan under this scheme through designated web portal.
Q10. What does EMI stands for?
Ans: EMI stands for Equal Monthly Installment. EMI arrangement allows the borrowers to repay the same amount every month.
Q11. Can we avail two loans under this scheme?
Ans: No. One entity can avail only one loan.
Q12. Can Government employees avail financing under the scheme?
Ans: No.
Q13. What is the Security requirement of the loan?
Ans: 1. Personal guarantee of all partners of the firm
2. Corporate guarantee of the firm.
Q14: Can siblings apply?
Ans: yes, provided they comply the criteria.
Eligibility
- A permanent resident of Khyber Pakhtunkhwa including Merged Districts.
- Having a valid Computerized National Identity Card
- Age Limit: 18-35.
- Potential startups having legal entity/ existing businesses entities having growth potential and business age less than two years.
- Potential beneficiary should have a do-able business idea relevant to the skills to start new business or extend their viable and sustainable enterprises.
- Potential beneficiary having verifiable, viable and feasible business plans.
- Female entrepreneurs are encouraged to apply.
- Graduates/ Skilled having clear business plan.
- Business must be located in Khyber Pakhtunkhwa
- Business shall be of legal entity.
- Clear e-CIB/ Data check. Clean repayment record indicated in e-CIB would be acceptable provided the debit burden does not increase the acceptable level to be ascertain by bank.
- Business should have a potential to generate further employment opportunities.
- The definition of SEs as prescribed in Prudential Regulations for SE Financing will be applicable for the purpose of this scheme.
In-Eligibility
- Apply in individual capacity.
- A loan defaulter or the applicant having any outstanding loan exposure with overdue of more than 60 days from any other Government’s/Donors Scheme or Banks and not having clear e-CIB.
- An employee of any Government or Semi-Government or Autonomous body
- A permanent/ contractual/ Third Party employee of BOK and other third party consultants engaged in the Scheme.
- Government’s/Donors Scheme or Banks clients and not having clean e-CIB.
- Businesses on negative list of Government of Pakistan that includes Arms and Ammunition, Explosives, Radioactive substances, Security printing, Alcoholic beverages, and Liquor will not be encouraged.