The Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS) is a flagship initiative of the Government of Pakistan designed to foster entrepreneurship among the youth and provide economic empowerment.
This scheme offers concessional loans at highly subsidized markup rates to young individuals to either start a new business (startup) or expand an existing Small and Medium Enterprise (SME), with a special focus on the Agriculture Sector. The program is executed through commercial banks in collaboration with the State Bank of Pakistan (SBP).
Loan Tiers, Limits, and Mark-up Rates (November 2025)
The loans under the scheme are segregated into three tiers based on the financing amount, with varying mark-up rates to promote affordability:
| Loan Tier | Loan Limit (PKR) | Borrower Mark-up Rate (Annual) | Loan Tenor (Maximum) |
| Tier 1 (T1) | Up to Rs. 0.5 Million | 0% (Interest/Markup-Free) | Up to 3 Years |
| Tier 2 (T2) | Above Rs. 0.5 Million up to Rs. 1.5 Million | 5% | Up to 8 Years (with max. 1-year grace period) |
| Tier 3 (T3) | Above Rs. 1.5 Million up to Rs. 7.5 Million | 7% | Up to 8 Years (with max. 1-year grace period) |
- Note on Installments: Loan repayment is typically structured in Monthly, Quarterly, or Half-yearly installments, depending on the bank’s policy and the nature of the loan (e.g., crop loans are tied to the crop cycle).
- Working Capital: The maximum tenor for working capital/production loans under T2 and T3 is up to 5 years.
Eligibility Criteria
The scheme is open to all eligible citizens across Pakistan:
- Citizenship: All Pakistani citizens holding a valid CNIC.
- Age Limit:
- For general business: 21 to 45 years.
- For IT/E-Commerce related businesses: The minimum age limit is 18 years.
- Gender: Men, women, and transgender individuals are eligible. A 25% quota is reserved for female applicants.
- Business Type: New startups and existing SMEs owned by youth within the prescribed age limit.
- Education: No minimum requirement generally, but for IT/E-Commerce businesses, at least Matriculation or equivalent education is mandatory.
- Ineligibility: Government employees (including their partners) and defaulters of any financial institution are not eligible.
How to Apply (Registration) for the Loan
The application process for the PM Youth Loan is entirely online through the official government portal. You do not need to submit physical forms at bank branches initially.
Step 1: Visit the Official Portal
- Go to the official website of the Prime Minister’s Youth Programme: https://pmyp.gov.pk/
- Click on the link to apply for the “Youth Business & Agriculture Loan Scheme.”
Step 2: Complete the Online Application Form
- Fill in all mandatory sections of the application form accurately, including:
- Personal Details: CNIC number, contact information, educational background.
- Business Details: Your detailed Business Plan/Feasibility Report, business type, and financial projections.
- Bank Selection: Select one of the participating commercial or Islamic banks (e.g., HBL, Allied Bank, Bank of Punjab, ZTBL, etc.) through which you wish to avail the loan.
Step 3: Prepare and Upload Documents
Ensure you have clear scanned copies or images of the following documents before starting the application:
- Passport Size Picture (Recent and clear).
- CNIC (Both front and back sides).
- Business Plan/Feasibility Study (Mandatory for evaluation).
- Educational/Technical Certificates (Highest degree).
- NTN (National Tax Number): Recommended to obtain an NTN before applying.
- Bank Statement (Last 6 months, if an existing business).
- Two References (Name, CNIC, and Mobile number of non-blood relatives).
Step 4: Submit the Form and Pay Fee
- Review the form thoroughly and click Submit.
- The non-refundable Form Processing Fee is only Rs. 100 (inclusive of NADRA CNIC verification charges), which you must pay online to finalize the submission.
Application Process and Tracking
- Processing Time: The bank’s processing time should not exceed 45 days from the date the application is forwarded to them.
- Tracking: You can regularly check the status of your application by logging into the same portal using your CNIC.
- Post-Approval: The selected bank will contact you to complete security arrangements and other necessary formalities for loan disbursement.
Security and Equity Requirements
- Tier 1 (T1) & Tier 2 (T2) Loans: These are Clean Loans, requiring only the personal guarantee of the borrower. Vehicle(s) financed will serve as collateral.
- Tier 3 (T3) Loans: Security requirements are as per the executing bank’s credit policy (typically requiring tangible collateral like property/assets).
- Borrower’s Equity (for New Businesses):
- T2 Loans: 10% self-contribution (Bank finances 90%).
- T3 Loans: 20% self-contribution (Bank finances 80%). (Equity can be in cash or immovable property and is required only after loan approval).
