Interest-free loans worth Rs2bn to be distributed in KP

Interest-free loans worth Rs2bn to be distributed in KP

PESHAWAR: Encouraged by the success of the Insaf Rozgar Scheme (IRS) in the merged tribal districts of Khyber Pakhtunkhwa earlier this year, the government has decided to follow suit for the rest of province.

In a meeting of the provincial cabinet, it was determined that the provincial government would launch a Rs2 billion interest-free loan initiative, which will be similar to the programme debuted in the merged areas.

The scheme included various special initiatives between 2011 and 2013, including Bacha Khan Khpal Rozgar Scheme, Pakhtunkhwa Hunarmand Rozgar scheme and Riwayati Hunarmand Scheme, which are being executed by the Bank of Khyber.

The amount of Rs2 billion is reportedly left over from the Khud Khalafat Scheme, and would be utilised by the tourism and youth affairs department to fund a start-up programme for talented youth, while the remaining amount would be at the disposal of the industries department for future job creation initiatives.

Individual loans are expected to range from Rs50,000 to Rs500,000 with a repayment period of 33 months and a grace period of three months.

According to available details, permanent residents of Khyber Pakhtunkhwa aged between 18 and 50 years with a credible and practical business plans for start-ups or existing setups and a clean credit history will be eligible for loans.

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