Prime Minister Youth Loan Scheme – Apply Online 2025
Dreaming of starting your own business but held back by capital? The Prime Minister Youth Loan Scheme (PMYB&ALS) offers a golden opportunity. In 2025, Pakistan’s federal government continues to support young entrepreneurs by providing low-markup, accessible financing. You can apply online now, from your home, for business or agri ventures. The scheme offers tiered loans from Rs 0.5 million up to Rs 7.5 million, with reduced markups of 0% to 7% depending on the tier.
- Applicants aged 21 to 45 (18 for IT/e-commerce) can benefit.
- It covers existing businesses, startups, machinery, working capital, agriculture, and more.
In this article, you’ll discover eligibility, loan tiers, step-by-step online application, benefits, and frequently asked questions to help you get your loan approved without frustration.
Summary Table: Key Details of PM Youth Loan Scheme 2025
| Feature | Details |
|---|---|
| Loan Scheme Name | Prime Minister Youth Business & Agriculture Loan Scheme (PMYB&ALS) |
| Age Eligibility | 21-45 years (18+ for IT/e-commerce) |
| Loan Tiers | T1: up to 0.5 million (markup-free); T2: up to 1.5 million (5%); T3: up to 7.5 million (7%) |
| Tenor / Repayment | Up to 8 years (with grace period) for long term; working capital 5 years |
| Security / Equity | New businesses: 90:10 (T2), 80:20 (T3); existing: no equity share |
| Application Mode | Online via PMYP portal, banks’ websites |
| Key Focus Sectors | Agriculture, SMEs, machinery, working capital, e-commerce, manufacturing |
Also Apply: Prime Minister Youth Loan Scheme
What Is the Prime Minister Youth Loan Scheme?
This is a federal program that helps young Pakistanis access funding for business and agricultural ventures. The scheme aims to reduce youth unemployment and encourage entrepreneurship. The State Bank of Pakistan regulates it, with many commercial banks participating to disburse the loans.
The scheme splits into three tiers:
- T1: up to Rs 0.5 million, markup free
- T2: above 0.5 million to 1.5 million, markup ~5%
- T3: above 1.5 million to 7.5 million, markup ~7%
It allows financing of working capital, term loans, machinery, locally manufactured vehicles (one per borrower), and agriculture development.
Also Read: CM Asan Karobar Scheme 2025 Reopen – Full Guide
Who Is Eligible?
Age & Nationality
- Must be Pakistani citizen with valid CNIC.
- Age 21-45 years, except for IT/e-commerce businesses where age 18+ applies.
Business / Sector Type
- New or existing SMEs, startups, business expansion, or agricultural enterprises.
- Agriculture types must align with SBP’s agriculture financing rules.
Financial / Credit Conditions
- No overdue defaults in e-CIB (credit bureau).
- For new businesses: provide equity share as per tier.
- For existing ones: equity may be nil.
Other Requirements
- Business plan / feasibility document.
- Collateral may be required for T3.
- One vehicle financing per borrower (except some franchise businesses).
Also Read: CM Punjab Green Tractor Scheme Phase 2 Launched: A Lifeline for Farmers
Step-by-Step: How to Apply Online
Registration & Portal Access
- Go to PMYP portal and open the “New Applicant” form.
- Fill personal data: CNIC, contact details, address.
Business Details & Financials
- Enter details about your business idea or existing business: sector, capital, revenue projections.
- Upload business plan / feasibility report.
Documents & Verification
- Upload CNIC, proof of address, bank statements, identity documents, technical / educational certificates.
- Provide signatures, guarantees, collateral documents if required.
Submit & Wait
- Submit application.
- It goes to banks / authorities for review.
- Expect decision within ~30–45 days (some banks have this TAT).
Also Read: CM Honhaar Scholarship 2025 – Unlock Your Future with a Fully Funded Seat
Why This Scheme Is Valuable
- Low markups make borrowing affordable especially for young businesses.
- Encourages youth entrepreneurship in all corners of Pakistan.
- Helps agriculture growth by offering funds to farmers for development.
- Boosts local economy via new startups, job creation, and innovation.
- Access from home (online), so less travel and hassle.
FAQs
What is the maximum loan under this scheme?
The maximum loan in Tier 3 (T3) is Rs 7.5 million. Loans beyond that are not covered under this youth scheme.
Are some loans markup-free?
Yes. Tier 1 (up to Rs 0.5 million) loans are markup-free. Higher tiers have markups (5% or 7%) depending on tier.
How long is the repayment period?
For long-term / development loans, repayment can be up to 8 years, sometimes with a 1-year grace period. Working capital loans may have up to 5 years.
Can existing businesses also apply?
Yes both new and existing businesses are eligible. Existing companies may need less equity share.
What security or collateral is required?
T1 & T2: typically clean loans, needing only personal guarantees.
T3: collateral may be required per bank policy
