PM Youth Loan Scheme
The Government of Pakistan has relaunched and expanded the Prime Minister Youth Loan Scheme 2025, officially known as the Prime Minister Youth Business & Agriculture Loan Scheme (PMYB&ALS). This initiative is designed to provide financial support to young entrepreneurs, startups, and farmers who want to expand or establish their businesses. With subsidized markup rates and flexible repayment options, the scheme aims to generate employment, promote innovation, and strengthen Pakistan’s economy.
Objectives of the Scheme
- To empower the youth through easy access to finance
- To support agriculture, small industries, and startups
- To encourage self-employment and reduce dependency on government jobs
- To increase women’s participation in business (25% quota reserved)
- To introduce digital transformation by supporting IT and e-commerce ventures
Eligibility Criteria 2025
| Requirement | Details |
|---|---|
| Nationality | Pakistani citizen with valid CNIC |
| Age Limit | 21 to 45 years (minimum 18 years for IT/e-commerce businesses) |
| Business Type | New or existing businesses (individuals, sole proprietors, partnerships, companies) |
| Sectors Covered | Agriculture, services, manufacturing, IT, e-commerce, trading |
| Women Quota | 25% of loans reserved for women applicants |
| Past Record | Applicant should not be a loan defaulter |
Loan Categories & Features
The scheme is divided into three tiers based on the loan amount:
| Tier | Loan Amount | Markup Rate | Repayment Tenure | Collateral/Security |
|---|---|---|---|---|
| Tier 1 (T1) | Up to 0.5 million | 0% (Interest-Free) | Up to 3 years | No collateral, only personal guarantee |
| Tier 2 (T2) | Above 0.5 million – 1.5 million | 5% per annum | Up to 8 years (working capital up to 5 years) | May require guarantee/collateral depending on bank |
| Tier 3 (T3) | Above 1.5 million – 7.5 million | 7% per annum | Up to 8 years | Assets or collateral as per bank policy |
Other Key Features:
- One vehicle can be financed per borrower (more allowed in distribution-related businesses)
- Up to 65% of financing can be used for construction and setup costs
- No early settlement charges
- Maximum of two loans allowed per person (one long-term and one short-term)
- Debt-to-equity ratio: 90:10 for Tier 2 and 80:20 for Tier 3 (for new businesses)
Online Application Process
The application procedure is fully digital to ensure transparency and easy access.
- Registration – Create an account on the PM Youth Loan online portal using CNIC and mobile number.
- Fill Form – Enter personal details, business information, and loan requirements.
- Upload Documents – Attach CNIC copy, photographs, educational certificates (for IT sector), business plan/feasibility, and utility bill.
- Review & Submit – Recheck the form and submit online. An application reference number is issued.
- Application Tracking – Use CNIC to check loan application status online. Updates are also sent via SMS.
- Loan Disbursement – If approved, the loan is transferred to the applicant’s bank account within the processing timeline (usually within 45 days).
Latest Updates 2025
- The scheme has financed over 434,000 youth entrepreneurs across the country since inception, with disbursements exceeding PKR 250 billion.
- A special quota is reserved for women and differently-abled individuals to ensure inclusivity.
- The government has launched a Digital Youth Hub under the PM Youth Programme, connecting applicants with training, business opportunities, and financial support.
- Agriculture and IT startups are being prioritized to align with Pakistan’s growth sectors.
- Some provinces have announced facilitation centers to help applicants prepare feasibility reports and business plans.
Conclusion
The PM Youth Loan Scheme 2025 is a golden opportunity for Pakistan’s youth to turn their ideas into successful businesses. With zero to low markup rates, easy online application, and flexible repayment terms, this initiative aims to create jobs, promote entrepreneurship, and strengthen the economy. Young people with innovative ideas, especially in IT, e-commerce, and agriculture, should take advantage of this scheme to secure their future.
Related Posts
