'Successful' interest-free loan schemes: People not or can't take cheap government loans?

Anwar Shaheen runs a small scale business but he wants to grow his business. Anwar Shaheen cannot borrow from the bank because he has no collateral to borrow from.

When the government launched an interest-free loan scheme for young people to start businesses, Anwar Shaheen applied for a loan under the scheme and completed all the paperwork from the bank.

However, Anwar Shaheen could not get this loan yet. Anwar Shaheen also applied for the government's successful Pakistan program, but he has not yet been successful in getting a loan.

Iftikhar Rasool is a software developer and works as a software developer on a limited scale. Aftikhar wants to expand his business for which he needs capital. He can get this capital in the form of an interest-free loan from the government and he is also willing to get this loan, but Iftikhar Rasool has not yet applied for this loan.

He said that some paperwork and other requirements have to be fulfilled to avail the government scheme and there are many forms to be filled which they have not been able to fill yet.

He explained the reason for this saying that firstly they don't have time and secondly they feel reluctant to fill many forms. Iftikhar Rasool needs 15 to 20 lakhs to expand his business.

Muhammad Ismail had applied for a loan in the successful youth scheme of the Prime Minister of Pakistan and had fulfilled the forms and conditions, but the loan could not be issued to him. Ismail, who wants to set up a general store, says why he didn't get a loan, he doesn't know and has stopped worrying about it now.

In Pakistan, like the previous governments, the current government launched interest-free loan schemes for people to do business, including schemes such as the Successful Youth Program and the Successful Pakistan Program. However, many people complain that despite applying for this loan, they did not get this loan.

In the month of October, the current government launched the successful Pakistan Program scheme, under which people are given interest-free loans to start businesses, buy agricultural land and houses, which banks provide to deserving people through microfinance institutions. To be divided.

However, the figures of disbursement of loans under this scheme in the months of November and December show that it has been disbursed only up to 2.5% of the two-month target. Under this scheme interest free loan upto five lakhs is provided.

According to banking and economic experts, the loans that will be given under the successful Pakistan program may also turn out to be similar to past schemes that did not bring any significant benefit.

On the other hand, the government has rejected the expectations of success and desired results of this scheme in just two to three months as the scheme spans three years and at the end of three years about its success or failure. No final opinion can be given.

What is Success Pakistan Program Scheme?

According to the operational framework of Successful Pakistan Program available on the website of the Ministry of Finance, it is the flagship project of the present government to make the poor sections of the society financially independent. Under this scheme, along with successful business, successful farmer category, house purchase category has also been introduced. Five lakh rupees for three years for a successful business and similarly an agricultural loan of one and a half lakh and two lakh for buying agricultural implements by a successful farmer has been announced. Similarly, it has been announced to provide a loan of up to 27 lakhs for buying a house.

What are the common problems in loan schemes?

Shahab Rizwan, who deals with loan applications in the digital sector of a local bank, said that first of all, it is important to know that when the government schemes are implemented by banks, Loans are provided under then specific banking products are developed for it which takes some time to develop. Similarly, handling of these products requires manpower which the bank cannot hire immediately.

Shahab said that in the same way, the training of the staff about these products and the completion of the documentary requirements related to them is also necessary.

Shahab said that most of the applicants complain about the process of getting a loan, the main reason being that those who apply or fill the online form often write the basic information wrong.

"For example, small borrowers are those who do not have the ability to fill the online forms due to lack of computer literacy and those who fill the online forms instead of them make basic mistakes that make the borrowers affect the procedure.'