The government is all set to offer soft loans to fishermen under the Youth Entrepreneurship Scheme (YES) of Kamyab Jawan Programme for boosting fisheries sector.
The Ministry of Maritime Affairs would sign Memoranda of Understanding with multiple banks including the National Bank of Pakistan and Bank of Punjab today (Thursday), that would eventually enable the fishermen to get concessionary loans under the YES, an official source privy to the development told APP on Wednesday.
The YES was launched in October 2019 under the banner of Kamyab Jawan Programme to provide the youth soft loans for initiation of their own businesses.
Recently, the government has enhanced the scope of YES which was meant to offer huge amount of concessionary loans ranging between Rs100,000 and Rs25 million to the youth.
Earlier, it was limited to Rs5 million only. According to the State Bank of Pakistan, under the YES, financing was segregated into three tiers.
Under tier-1, loan limit is from Rs100,000 upto Rs1 million, whereas tier-2 s loan limit is from above Rs1 million and upto Rs10 million and under tier-3, loan limit is from above Rs10 million and upto Rs25 million.
For tier-1 loans, mark up rate is 3 percent, while mark up rate for tier-2 loans is 4 percent, and for tier-3, mark up rate is 5 percent.