PM Youth Loan Scheme: Explained In Detail

[Jazzbot]

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https://www.facebook.com/video.php?v=547444795349517

https://www.facebook.com/video.php?v=547129655381031

Another Gimmik from Gimmik League?

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@hasnain0099 @cb4 @Tameem @arushbhai @Leader @Aeronaut @Armstrong @chauvunist @pkuser2k12 @Aamna14 @Echelon @RescueRanger @Zarvan

 

[Leader]

^ this is exactly what this is all about...

 

[PurpleButcher]

so this is the experienced way to run a scheme... well done experienced PMLN...well done

 

[SBD-3]

And yet the 4 million forms have been downloaded already

Guarantee is the basic collateral of any bank based lending. Even for clean lending (technical term for unsecured lending) a stable implicit collateral i.e. salary flows is ascertained plus two guarantees (not one as in this case) are required. Ideally the scheme should have been based on 40:60 or 30:70 equity -debt principal so that only that person would approach for funds who has some stake in doing something. If a young man is educated and of good character, he would have little problem in getting a guarantee than a person who doesn't have a character. This loan scheme will at least expose one thing. The character and ability of our "Energetic" youth. I would have little risk in extending a guarantee to someone needing 50000-100000 but i would certainly not like to risk taking a guarantee of 5000000+ on every tom dick and harry approaching me for it unless i am not aware of person's moral and business character.

 

[RescueRanger]

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https://www.facebook.com/video.php?v=547444795349517

https://www.facebook.com/video.php?v=547129655381031

Another Gimmik from Gimmik League?

​

@hasnain0099 @cb4 @Tameem @arushbhai @Leader @Aeronaut @Armstrong @chauvunist @pkuser2k12 @Aamna14 @Echelon @RescueRanger @Zarvan

Rolf, that second video killed me

 

[Saifullah Sani]

Pakistan is not the only who launch such scheme African union launched similar scheme called African Guarantee Fund and EU's scheme called EU Loan Scheme

 

[PurpleButcher]

A simple question.

why would someone (unknown / not a family member) will be willing to give you 4 cheques each equivalent to 25% of your loan..... why? what advantage is there for the guarantor?

 

[SBD-3]

A simple question.

why would someone (unknown / not a family member) will be willing to give you 4 cheques each equivalent to 25% of your loan..... why? what advantage is there for the guarantor?

That was interesting indeed . Guarantor takes the obligation, he is not working for any advantage.

 

[PurpleButcher]

That was interesting indeed . Guarantor takes the obligation, he is not working for any advantage.

Do you know anyone who will be willing lets say to give four cheques worth 2 million rupees to some "UNRELATED"? I know no one... I discussed this thing with lots of people and here are the major replies that one gets "I can attest someone's documents but not give cheques"....

Look the problem is simply the trust factor

-> On one side so much trust is needed that a person would be willing to give cheques as guarantee for somebody

-> But the somebody must be unrelated

-> If so much trust existed between the unrelated guarantor and the needy youth, than why the hell would the youth have gone to the govt in the first place?

 

[SBD-3]

Do you know anyone who will be willing lets say to give four cheques worth 2 million rupees to some "UNRELATED"? I know no one... I discussed this thing with lots of people and here are the major replies that one gets "I can attest someone's documents but not give cheques"....

Thats why i said that the youth should be more rational on this. Why should one be going for whole 2 million loan when he can do something in far less amount. The higher the loan amount, the more the risk of default if the borrower fails to service the loan. Any guarantor would be vary of this fact. Like i said before as a guarantor I would be more comfortable in guaranteeing a loan of 1 or 2 lakh than 2 Million.

Look the problem is simply the trust factor

-> On one side so much trust is needed that a person would be willing to give cheques as guarantee for somebody

-> But the somebody must be unrelated

-> If so much trust existed between the unrelated guarantor and the needy youth, than why the hell would the youth have gone to the govt in the first place?

The money that is being lent out is not zakat or free money. The money that is being lent out is that of government and banking sector. Government's money is that of tax payers while bank's money is that of common man's savings. You shouldn't expect it to be given out loosely to any tom dick and harry.

 

[Pukhtoon]

@hasnain0099

Is this true ? saw it on FB.

 

[SBD-3]

@hasnain0099

Is this true ? saw it on FB.

I don't know how this guy calculated the amount but this is how I think i would be calculated
Total Period =8 years
Grace period =1 Year (where no payment is to be made)
amount due at the beginning of 2nd year
2,000,000*1.08=2,160,000.
Now amortize this on the 7 years using 8 percent

Monthly Payment
Year ---------- beginning balance
1-------------------2,160,000.00
2--------------------1,920,136.95
3---------------------- 1,660,365.38
4-----------------------1,379,032.90
5------------------------1,074,349.96
6--------------------------744,378.49
7---------------------------387,019.55
8-------------------------------0.00
Monthly payment will be 33,666.22 PKR.
Annuity Payout Calculator

 

[Pukhtoon]

I don't know how this guy calculated the amount but this is how I think i would be calculated
Total Period =8 years
Grace period =1 Year (where no payment is to be made)
amount due at the beginning of 2nd year
2,000,000*1.08=2,160,000.
Now amortize this on the 7 years using 8 percent

Monthly Payment
Year ---------- beginning balance
1-------------------2,160,000.00
2--------------------1,920,136.95
3---------------------- 1,660,365.38
4-----------------------1,379,032.90
5------------------------1,074,349.96
6--------------------------744,378.49
7---------------------------387,019.55
8-------------------------------0.00
Monthly payment will be 33,666.22 PKR.
Annuity Payout Calculator

Ok one more question.. Why intrest why not with out intrest .. If govt can give 2 Million .. why the hell they need that 8% back then;

 

[SBD-3]

Ok one more question.. Why intrest why not with out intrest .. If govt can give 2 Million .. why the hell they need that 8% back then;

It is because the basic concept of cost of money. The actual cost of money is 16%, GoP will be paying 8% differential to banks from her own kitty.....Even if the government goes to borrow from banks for just three months via T-Bills, the government is paying 10-11%. Clean lending rate in market for consumers is around 42% per year..

 

[Pukhtoon]

@hasnain0099