KARACHI: The Union of Small and Medium Enterprises (UNISAME) advised the youth to avail the loan and benefit from the scheme and urged them to study the feasibility and prepare a proper and sound business plan whilst applying for loan under the prime minister youth loan scheme (PM-YLS).
President UNISAME Zulfikar Thaver recording a show on a local television channel informed the viewers that the PM and the chairperson Mariam Nawaz were both very keen to promote self employment. On success of this scheme other schemes will be initiated such as housing and farming.
This is in fact a pet project of the chairperson Mariam Nawaz who is very enthusiastic about its full success. He pointed out that the Small and Medium Enterprises Development Authority (SMEDA) had placed 56 feasibility studies, business plan guidelines, financial calculator and help desk services for the benefit of the youth applicants. The application form can also be downloaded from their website.
He dispelled doubts about the complexity of the PM-YLS and said it is very simple and the applicants are required to submit one passport sized photograph, copy of national identity card (CNIC), borrowers fact sheet, guarantors information and the prefeasibility or the business plan.
He urged the applicants to ensure that the business plan is sound and that the applicants are clear in their minds about the nature of business planned. It is important that they have aptitude for the planned business.
Answering criticism he emphasized the need to trust the youth and build their confidence by guiding them in entrepreneurship. The loan is available at 8% mark up and cannot be labeled as interest because it is a subsidy with repayment under installments over a period of 8 years with one year grace period. The equity is only 10%. All these facilities are to be appreciated and not criticized unnecessarily he asserted.
He expressed confidence that there will be many success stories of youth who will start business and grow their businesses.
Replying to the failure of yellow taxi scheme, he said it was launched with good faith and nevertheless the problem of taxi availability was solved. It was to be followed by the yellow tractor scheme which would have benefited the farmers but unfortunately the facility of yellow taxi loan was abused by some causing it to fail.
He said the government is not obliging the youth in any way by the PM YLS it is their right and duty of the state to promote, encourage and facilitate them and in fact the PM and the chairperson PM YLS are looking forward to come up with more such projects.
UNISAME has offered co-operation and full support and invited the multinationals and big corporations to support such schemes through their corporate social responsibility (CSR) funds jointly with SMEDA.