National Bank of Pakistan (NBP) is likely to launch the Prime Minister Youth Business Loan (PMYBL) scheme under the Islamic Banking Division ‘Aitemaad’ soon, media sources have reported. An NBP official is reported to have said that the product is in its last stages of completion and will be sent in for approval from the concerned Shariah department. The financial modalities have also been taken care of, he added.
Once the product is launched under the Shariah Compliant banking mode, NBP will become the only bank to offer such a scheme in its conventional and Islamic banking system. The PMYBL scheme is likely to lead to a surge in financing through NBP for different projects since the scheme will appeal to faith-conscious clients.til now, only Meezan Bank has been active in promoting PMYBL and has reported
Until now, Meezan Bank has been active in promoting PMYBL and has reported to have disbursed Rs 148m among 200 borrowers particularly in the transport sector with 100 pc recovery rate. Other Islamic Banks have been reluctant in designing such a product or financing business for youngsters and startups.The NBP’s Islamic banking is likely to play a vital role in promoting PMYBL scheme and businesses run by youth. NBP is already successfully running this scheme under its conventional banking
The NBP’s Islamic banking is likely to play a vital role in promoting PMYBL scheme and businesses run by youth. NBP is already successfully running this scheme under its conventional banking mode through which it has been successful in disbursing Rs 2b under different projects by end of February 2017.
In the first year, the bank made disbursement of Rs 6.25b with 6,791 borrowers in 2015. The loan values continued to increase as the bank disbursed Rs 15b to 14,700 borrowers in 2016.
Not only is NBP the leader in the PMYBL scheme but it also trains bankers from various commercial banks to initiate such a scheme in their organisations.
As per the SBP, the sanctioned amount under PMYBL increased from Rs 17.219b at the end of June 2016 to Rs 18.315b at the end of September 2016 registering a growth of 6pc.
National Bank of Pakistan, First Women Bank, Summit Bank and Meezan Bank emerged as the top four performers of loan disbursement under the scheme.