LAHORE: Punjab Minister for Industries and Trade Mian Aslam Iqbal on Wednesday said that the government of Punjab has decided to launch Punjab Credit guarantee Scheme (PCGS) to provide loans to youth on soft conditions.
The minister stated that under PCGS, an individual can get loan up to Rs3 million on soft conditions. “Initial paper work has been completed and Prime Minister Imran Khan will formally launch the loan scheme soon.
Aslam further stated that to acquire loan, the applicant will submit his/her business idea with the departmental committee through online application. If committee approves the idea, the amount of the loan will be issued.
Under PCGS, a male aspirant will invest 30 percent of the total amount required for initiating business whereas the rest of 70 percent would be provided by the provincial government. On the other hand, a female applicant will invent 20 percent of the total amount whereas rest of the 80 percent would be provided by the departmental committee.
Once acquired, the borrower would be exempted from paying any installment till 12 months. The borrowed amount should be returned in five years.
Aslam underscored that provincial government would pay the 3 percent markup on amount of loan.
The minister added that government had acquired Rs550 million for the scheme in the initial phase.
“Universities’ students and entrepreneur can also benefit from the scheme”, minister concluded.