Prime Minister Shahbaz Sharif Qarz e Hasna (Interest Free Loan) Scheme 2023-24-Get Complete Details & Application Form
Prime Minister Shahbaz Sharif has decided to launch Prime Minister’s Qarz e Hasna (Interest free loan) scheme under Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS). Billion of rupees have been allocated for this scheme. Application forms are available online now. You can find the form for Prime Minister Shahbaz Sharif Qarz e Hasna Scheme 2023 at https://pmyp.gov.pk. Here below on this page we are going to share the details about PM’s youth loan scheme 2023. First kindly try to understand the Islamic term of Qarz e Hasna;
What is Qarz e Hasna? Explained
Qarz-e-Hasna is a form of interest-free loan provided by Islamic banks to individuals & businesses. It is a loan given to help people in need & is usually given to those who are unable to obtain a loan from traditional banking institutions. Infact Islam is strictly against interest or markup. As per Islamic economic principles usury is forbidden in any form and only Qarz e hasna type loans are allowed. The markup free loan is usually provided for a short period of time & the borrower is expected to pay back the loan within the specified time frame.
Prime Minister Shahbaz Sharif Qarz e Hasna Scheme 2023 Complete Details, Forms
The amount of the interest free loan is determined by the bank & the borrower is expected to return the loan in full, with no interest or markup. The borrower is also expected to pay back the loan on time, as late payments can result in penalties & additional fees. Qarz-e-Hasna is a great way for individual persons & small businesses to get the funds they need, without having to worry about paying interest or markup. It is a great option for those who are unable to get a loan from traditional banking channels & it can help them get the money they need to start or grow their business. Now you need to read the terms of PM Shahbaz Sharif’s Qarz e Hasna scheme 2023.
Terms & Conditions of Prime Minister Shahbaz Sharif Qarz e Hasna Scheme 2023
Here are the detailed terms and conditions of pm loan scheme 2023
This scheme is not interest free in real sense as it has 3 tiers and just first tier is interest free under which you may get loan of up to 500000 rupees. Under second tier you can get loan of 500000 to 1500000 rupees on the interest rate of 5% and under third tier one can get loan of 1500000 to 7500000 on markup rate of 7%.
Debt equity ratio is also very reasonable as it is 90:10 for first 2 tiers and for third tier it is 90:20. What does debt equity ratio means? its simple, i.e how much money you will invest in a new business and how much bank will finance. In tier 1 and 2 you will provide 10% amount required to launch a business and rest of the amount will be provided by the bank. In tier three you will invest 20% amount. Debt equity ratio is nill for existing businesses. You may contribute in equity in form of cash and immovable property. Remember that your share in equity will be needed after the approval of a loan. Females of the Pakistan will get 20% loans including the qarz e hasna.
Your application for qarz e hasna will be processed within 45 days. There will a minor application processing fee i.e 100 rupees. Here below a link has been given for more information about Prime Minister Shahbaz Sharif Qarz e Hasna Scheme 2023 and another link to download form for PM loan scheme 2023;