PM Youth Loan Scheme Initiative
PM Youth Loan Scheme Initiative. This scheme is an important initiative of the Government of Pakistan to provide financial assistance to young entrepreneurs and farmers. It creates new employment opportunities in the business and agriculture sectors
Changes and expansion
The State Bank also included microfinance and agricultural loans under the “Kamiyab Jawan” program, introducing three tiers of loan distribution.
Eligibility criteria
- Pakistani citizen (CNIC holder)
- Age: Generally 21–45 years, while for IT/e-commerce, starting from 18
- One partner in a personal project or partnership/company must be at least the above age.
- SBP 2020 norms apply to agricultural loans
Loan Types and Tiers
Three parts (tiers):
Tier Amount (PKR) and Interest, and Rate Tenor
T1 ≤ 500,000 0% (without interest) 3 years
T2 500,001–1,500,000 5% Long: 8 years, Working: 5 years
T3 1,500,001–7,500,000 7% Long: 8 years, Working: 5 years
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Special Conditions:
- Working/Production Loans Only: Markup Payment Option for First Two Years
- Long-term loans include a wide grace period of up to 1 year
Latest Updates 2025
- In 2025, the government reactivated these schemes, and the project is ongoing, in which microloans are also available without collateral.
- 25% special quota for women for special customers.
- Rs 10 billion allocated for this scheme in the federal budget for 2024–25; the scope of agricultural loans was also increased.
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Loan amount and involvement of banks
- A total of Rs 13.11 billion was provided to 21,294 youth during August-October 2024
- There are 15 bank partners under this scheme, including Bank Alfalah, ABL, NBP, BOP, HBL, Mian Bank, ZTBL, etc.
Benefits and Impact
- No interest or low interest:
It is easy to get loans, saving the youth from financial burden.
- Employment:
The loan recipients get opportunities to provide jobs to others, along with self-employment
- Agricultural Development:
Production can be increased through modern agricultural equipment, seeds and machinery.
- Equitable Distribution:
Loans are distributed on the basis of transparency and merit.
- Women Empowerment:
Giving a 25% quota to women increases economic inclusion.
Application Procedure
- Registration:
With CNIC on the official PMYP or bank partner website.
- Form Filling:
Personal details, business/agricultural plan, and required amount.
- Documents to upload:
CNIC, Business plan (above 500,000), Proof of income or land ownership.
- Fees paid:
Approximately Rs. 100 for NADRA verification
- Submission:
Bank approves in 4–6 weeks after processing
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Challenges
- Delays in NADRA verification.
- There were issues with templates and transparency in some areas, but these have improved compared to the previous process.
Conclusion
Through this scheme, the government of Pakistan is serious about providing business and agricultural development opportunities to the youth and farmers. Due to interest-free rates, easy terms, and good bank support, this loan is a great source of income for individuals who want a steady income.
If you are between the ages of 18–45, looking for a business or agricultural venture, then PMYB&ALS is a great opportunity for you.
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