Prime Minister's Youth Business & Agriculture Loan Scheme

Prime Minister's Youth Business & Agriculture Loan Scheme (PMYB&ALS) has been launched with following features. All eligible persons can apply for the loan by visiting

Eligibility Criteria

i.All citizens of Pakistan holding CNIC, aged between 21 and 45 years with entrepreneurial potential are eligible.

ii. For IT/E-Commerce related businesses, the lower age limit will be 18 years and at least matriculation or equivalent education will be required. Above age limit condition is applicable on individuals and sole proprietors. In case of all other forms of business including partnerships and companies, only one of the owners, partners or directors must be in the age bracket prescribed above.

iii. Small and Medium Enterprises (startups and existing businesses) owned by youth as per above mentioned age brackets are also eligible.

iv.In case of agriculture, farmers’ classification as per SBP’s “Indicative Credit Limits & Eligible Items for Agriculture Financing 2020” will be applicable.

Loan Size

Size of loan is segregated into 3 tiers, as under:

Tier 2 (T2): Above Rs 0.5 million and upto Rs 1.5 million

Tier 3 (T3): Above Rs 1.5 million and upto Rs 7.5 million/p>

Loan Type

Term loans/ working capital loans including murabaha and leasing/financing of machinery and locally manufactured vehicles for commercial use.

Only one vehicle per borrower is allowed. A borrower in food franchise and distribution business may avail financing for more than one vehicle.

Upto 65% of total financing limit can be availed for Civil Works. For agriculture, production and development loans are eligible.

Loan Tenor

T2 & T3: Upto 8 years for long term/development loans with maximum grace period of upto one year.

For working capital/production loans and murabaha under T2 and T3, tenor will be upto 5 years. Banks will have the option to lend working capital/production loans wherein only markup will be payable during first 2 years and thereafter both principal along with the markup will be paid in next 3 years making it total repayment period of upto 5 years.

Debt: Equity Ratio

For New Businesses:

T2 - 90:10

T3 - 80:20

The Borrower’s contribution of equity would be in the form of cash or immovable property and will be required after approval of loan.

For Existing Businesses: Nil for all tiers.

End User Rate

T2: 5%

T3: 7%

Security Requirements

Security arrangement will be as under:

T2: Clean (secured only by personal guarantee of the borrower).

T3: As per banks policy.

Vehicle(s) financed under T2 & T3 to serve as collateral.

Number of Loans per Borrower

A customer may avail maximum two loans (including one long term and one short term loan) within overall maximum financing limit of Rs 7.5 million.

In case of agriculture, a customer may avail one production loan and one development loan within overall maximum financing limit of Rs 7.5 million.

Sectors and Products

All sectors and products. Moreover, in case of agriculture, all crop and non-crop sectors (including crop production, livestock, poultry, fishery, dairy etc.) are also eligible.

Online Application Form on PM Youth Portal

For effective monitoring, online application form is prescribed through PM Youth Program (PMYP) Portal. The Form would be both in English and Urdu as provided on the portal.

The purpose of the portal is to provide a centralized platform through which applicants would be able to apply directly to the relevant banks. The portal will be hosted and controlled by National Information Technology Board, Ministry of IT and Telecommunication.

Geographical Distribution

Whole of Pakistan.

Fees & Charges

Processing Fee: Rs. 100

Other Charges: At Actual

PMYB & ALS Flyer (Click Here)

This page was last updated on: April 6, 2023 3:40:00 PM