The State Bank of Pakistan on Monday announced enhancement in maximum tenor for Prime Minister’s Youth Business Loans. Now the maximum period will be eight years. Earlier, on November 18, 2013, the SBP announced that tenor for Prime Minister’s Youth Business Loans will be up to 7 years with six (6) months grace period. However, now the SBP has decided to enhance the tenor by six months to facilitate the youth.
According to SBP IH&SMEFD Circular Letter No 09 of 2013, maximum tenor of the loans under Prime Minister’s Youth Business Loans Scheme will be eight years including grace period of one year.
In addition, the SBP has decided to withdraw sectoral limits imposed vide IH&SMEFD Circular Letter No 08 of 2013.
Moreover, the central bank has invited attention of banks towards the SECP’s Code of Corporate Governance required to be followed by banks in terms of Prudential Regulation G-1. In this respect, banks have been advised to ensure that financing provided under this programme or other similar programmes should be reported in consolidated form in their Annual Reports under Corporate Social Responsibility initiatives.
Other instructions on the subject will remain unchanged. The SBP has asked banks to ensure meticulous compliance with the instructions.
Source: Business Recorder