The Insaf Rozgar Scheme is a pivotal initiative by the Government of Khyber Pakhtunkhwa (KP) aimed at fostering entrepreneurship and alleviating unemployment in the province. By providing interest-free loans to aspiring entrepreneurs, the scheme empowers individuals to establish and expand their businesses, thereby contributing to the region’s economic growth.
Objectives of the Insaf Rozgar Scheme
The primary objectives of the Insaf Rozgar Scheme include:
- Socio-Economic Development: Promoting economic growth by supporting small and medium enterprises (SMEs).
- Poverty Alleviation: Reducing poverty through job creation and income generation.
- Entrepreneurial Culture: Encouraging a culture of entrepreneurship among the youth and marginalized communities.
- Financial Inclusion: Ensuring access to financial resources for disadvantaged segments of society.
Loan Details
The scheme offers interest-free loans with the following parameters:
- Loan Amount: Ranging from Rs. 50,000 to Rs. 1,000,000, depending on the business plan and applicant’s profile.
- Eligibility Criteria:
- Age between 18 to 50 years.
- Permanent resident of KP, particularly the newly merged districts.
- Not a government or semi-government employee.
- Not a regular student.
- No outstanding loans from other government schemes or banks.
- Repayment Terms: Loans are repayable over a period of three years, inclusive of a three-month grace period for new enterprises.
Application Process
To apply for the Insaf Rozgar Scheme, follow these steps:
- Application Form: Obtain and complete the application form available at designated branches of the Bank of Khyber (BoK) or online.
- Documentation: Submit the following documents:
- Valid Computerized National Identity Card (CNIC) of the applicant and guarantor.
- Two passport-sized photographs of the applicant and guarantors.
- Attested copies of educational degrees or skill certifications.
- Salary slip of the government guarantor.
- Letter of Comfort from the concerned department for government employees.
- Income proof of private guarantors along with an undertaking on stamp paper.
- Submission: Submit the completed application and documents to the nearest BoK branch or designated office.
- Processing: The bank will assess the application, conduct necessary verifications, and, upon approval, disburse the loan amount.
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Guarantor Requirements
Applicants are required to provide two guarantors:
- Government Employee: At least one guarantor must be a government employee in BPS-07 or above.
- Private Individual: The second guarantor can be a private individual with a stable income source.
Loan Utilization
The loan amount should be utilized for:
- Business Setup: Purchasing equipment, raw materials, or inventory.
- Business Expansion: Enhancing existing operations or entering new markets.
- Working Capital: Managing day-to-day operational expenses.
Impact and Achievements
Since its inception, the Insaf Rozgar Scheme has made significant strides:
- First Phase: Launched in June 2020 with a budget of Rs. 1.1 billion, it provided interest-free loans to 4,576 individuals, achieving a 90% loan recovery rate.
- Second Phase: Initiated with an additional Rs. 700 million, aiming to assist 3,000 more individuals in the newly merged districts.
Challenges and Considerations
While the scheme has been successful, it faces certain challenges:
- Awareness: Ensuring that potential beneficiaries are informed about the scheme.
- Training: Providing adequate training to applicants for effective business management.
- Monitoring: Establishing robust mechanisms to monitor the utilization of funds and business progress.
Conclusion
The Insaf Rozgar Scheme stands as a testament to the Government of Khyber Pakhtunkhwa’s commitment to economic empowerment and poverty reduction. By offering interest-free loans and fostering an entrepreneurial spirit, the scheme has positively impacted numerous lives, contributing to the socio-economic development of the region. Continued support and enhancement of such initiatives are essential for sustainable economic growth and prosperity.
For more information and to apply, visit the official website of the Bank of Khy
