Bank of Khyber: Interest Free Loan through Ehsaas Naujawan Programme 2024
In a situation where Pakistan is facing unemployment and financial crisis, Ehsaas Naujawan Programme is a breath of fresh air for all poverty stricken youth of Khyber Pakhtunkhwa. This particular step is taken to provide interest free loans to encourage startups started by youth. The Government of KP has allocated PKR 3 billion under the Ehsaas Naujawan Programme for the fiscal year 2024-25. This programme is funded through two financial institutions. One is the Bank of Khyber and the other is Akhuwat.
Interest-Free Loans through Bank of Khyber
Under this component, the Bank of Khyber disburses interest-free loans ranging from PKR 1 million to 5 million specifically targeted at young entrepreneurs aged 18-35 years. This funding is aimed at supporting medium-scale businesses with a focus on high-potential sectors, teamwork, and diverse expertise through cluster partnerships.
Now what is this cluster approach? Let me tell you in detail. Cluster- based approach is basically that a group of 3-5 young individuals can apply together who have teamed up to do a business together.
Key Features of Ehsaas Naujawan Programme
- Cluster-Based Approach: this is when Teams of 3-5 young individuals can apply together, signing an Association of Partnership (AOP) to combine their skills and resources.
- Targeted Loan Use: Loans under bank of khyber are mainly sanctioned specifically for establishing new businesses and not for expanding existing ones, focusing on creating fresh employment opportunities.
- Grace Period and Repayment: Beneficiaries enjoy a 20-month grace period with an eight-year repayment term (96 months total), making the loan terms manageable and accessible.
- Viable Business Plans: Applicants are required to submit business proposals online through the Ehsaas Naujawan portal, where they will be assessed for sustainability and growth potential.
Inclusivity and Quotas
As per the bank of khyber’s loan distribution strategy, they prioritizes inclusivity by allocating funds to certain sectors of society:
- 15% Quota for Female Entrepreneurs: Supporting women-led businesses and encouraging gender diversity in entrepreneurship is very important to empower women thus promoting socio-economic growth. This is also a part of CM KP’s vision.
- 5% Quota for Minorities, Persons with Disabilities, and Madaris Youth: this is to Promote equal access and opportunities for marginalized communities such as minorities, disabled people and madaris youth enabling them to contribute to the local economy.
Funding and Operational Costs
The total allocation for this component is PKR 1 billion.
Government’s Vision for Youth Empowerment
This project is a great initiative taken by the government of Khyber Pakhtunkhwa that aligns with their broader goal to equip youth with essential skills and promote entrepreneurship. The Ehsaas Naujawan Programme provides the foundation for:
The province of kp will be highly benefited from this programme. Firstly, unemployment will be greatly reduced because newly established businesses led by youth will create job opportunities.
One of the aims for the establishment of Ehsaas Naujawan Programme is to train youth for skills like e-commerce and digital marketing. This way the youth of kp will be skilled to compete in the world that is leading these digital fields.
Vocational training will be provided by the government of KP to prepare young individuals for the future job market.
Application Process and Online Portal
The Bank of Khyber simplifies the application process by enabling young entrepreneurs to submit their business plans online via the Ehsaas Naujawan portal. The platform is designed to streamline applications, making it easier for youth to apply, track their applications, and receive funds for approved business models. You can go through the step-by-step guide on how to apply for the Ehsaas Naujawan Programme here.
Conclusion
The Bank of Khyber, in collaboration with the Government of Khyber Pakhtunkhwa, is encouraging youth entrepreneurship by providing interest-free loans under the Ehsaas Naujawan Programme. This initiative addresses not only the financial needs of young entrepreneurs but also promotes equality, skill-building, and socio-economic growth. By supporting youth-led businesses, BoK is paving the way for a prosperous future where youth are empowered to lead the province’s economic development and create sustainable job opportunities for generations to come.
