The Ehsaas Nojawan Program is a promising initiative launched by the government of Khyber Pakhtunkhwa to support young entrepreneurs. This program provides interest-free loans to help the youth start and grow their own businesses, breaking down financial barriers and opening doors to self-reliance. Here’s an in-depth look at the program, including how to apply, loan categories, and the impact on young people in the province.
Objectives of the Ehsaas Nojawan Program
The primary goal of the Ehsaas Nojawan Program is to empower young people by providing financial support for small and large business ventures. Many youth face challenges in securing funding due to limited resources, but this program aims to remove those obstacles.
By offering loans without interest or the need for collateral, the program allows the youth to focus on creating new opportunities, stimulating economic growth, and contributing to their communities.
How to Apply for the Ehsaas Nojawan Program
The application process for this program is straightforward, making it accessible to all eligible youth.
For Small Business Loans
- Visit the Nearest Akhuwat Branch: Start by visiting an Akhuwat branch. You can locate a branch nearby using their branch locator service.
- Fill Out the Application Form: Provide basic details about yourself and your business plan.
- Submit Necessary Documents: Include documents that confirm your identity, residence, and the business idea you wish to pursue.
- Application Review: Akhuwat reviews applications, and once approved, the funds are disbursed.
For Large Business Loans
- Apply Online at the Bank of Khyber Portal: Applicants can go to the official portal for the Ehsaas Nojawan Program on the Bank of Khyber website.
- Complete the Online Form: Fill in accurate details about your business.
- Upload Required Documents: Documents such as your CNIC, proof of residence, and business plan are needed.
- Application Review and Disbursement: The Bank of Khyber reviews the application, and upon approval, the funds are transferred directly to the applicant’s account.
Types of Loans in the Ehsaas Nojawan Program
The program offers two types of loans, each designed for different business needs.
- Small Business Loans
Small loans range from PKR 100,000 to PKR 500,000. These are ideal for young entrepreneurs aiming to start small ventures. Managed by the Akhuwat Islamic Microfinance Institute, these loans are easily accessible, and the repayment terms are flexible, allowing recipients to focus on growth. - Large Business Loans
For larger business plans, loans between PKR 1 million and PKR 5 million are available. These are provided by the Bank of Khyber, supporting bigger business ideas that require significant funding. With no interest and extended repayment terms, young people can take calculated steps in building successful businesses without immediate financial pressure.
Benefits of Interest-Free and Collateral-Free Loans
One of the program’s most notable features is the absence of interest and collateral requirements. Traditional loans often come with high interest rates, which can burden young business owners. By removing these barriers, the Ehsaas Nojawan Program ensures that young people from all backgrounds, especially those from undeserved areas, have an equal chance to pursue their business dreams.
Flexible Loan Repayment Options
The repayment terms for both types of loans are designed to help young people succeed without immediate financial stress.
- Small Loans: Repayment terms range from 36 to 60 months, depending on the loan type.
- Large Loans: Loans from the Bank of Khyber can be repaid over up to eight years, offering longer terms for larger ventures.
This flexibility ensures that young entrepreneurs have ample time to establish their businesses before they begin repaying the loan.
Equal Opportunities for All Districts
To ensure fair distribution, the program allocates funds proportionally to each district, based on population. This approach allows youth from all areas of Khyber Pakhtunkhwa, including remote regions, to benefit from the program. It creates a balanced system where everyone has a fair chance to access funds.
Impact of the Ehsaas Nojawan Program
The Ehsaas Nojawan Program is not just about financial assistance; it has a much broader social impact:
- Empowering Youth: The program provides financial tools for young people to become self-reliant.
- Boosting the Economy: By supporting new businesses, the program helps stimulate the local economy and encourages innovation.
- Creating Jobs: When young people start businesses, they often create job opportunities within their communities, fostering a positive employment cycle.