Rules have further been softened for seeking loans under Prime Minister’s Youth Business scheme, and now balloting will be held for all applications sanctioned during a month based on respective share in the NFC Award.
The State Bank issued a circular to all banks on Thursday explaining the additional parameters for the scheme. Under the amended rules, the guarantor must have individual or collective net worth of 1.5 times of the requested amount.
“The applicant can also provide guarantee of more than one guarantor (maximum three) with aggregate net worth of 1.5 times of the requested loan amount,” said the State Bank.
There was a general complaint about the parameters for guarantors which made the scheme difficult for applicants, especially from poor families and lower middle class. The problem has now been resolved by expanding the number of guarantors for each applicant.
“The guarantor could be a government employee of BPS-15 or above with a minimum of eight years of remaining service at the time of providing the guarantee. No net worth is required if guarantor is a government employee of BPS-15 or above,” said the State Bank.
