What is Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS)?
The Prime Minister’s Youth Business and Agriculture Loan Scheme (PMYB&ALS) is a government initiative designed to empower young Pakistanis by helping them start their own businesses and explore entrepreneurial opportunities. The program aims to strengthen the SME and agriculture sectors by offering affordable business loans on easy terms. These loans are provided with little or no markup through various Islamic, commercial, and SME banks.
Eligibility Criteria
SMEs & Startups: Small and medium enterprises (including startups and existing businesses) owned by youth meeting the above age criteria are also eligible.
Age and Citizenship: All Pakistani citizens with a valid CNIC, aged 21 to 45 years, with entrepreneurial potential, are eligible.
IT/E-Commerce Businesses: For IT or e-commerce ventures, the minimum age is 18 years and applicants must have at least a matriculation or equivalent education.
Business Type:
The age requirement applies to individuals and sole proprietors.
For partnerships or companies, at least one owner, partner, or director must fall within the eligible age range.
What is the Loan Size that can be availed under this scheme?
The loan size that can be availed under this scheme is segregated into the following tiers:
Tier 1 (T1) Amount (PKR): Up to 0.5 million (Up to 5 Lacs)
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.
Types of Loans Available under the Scheme
The scheme offers term loans and working capital loans, including leasing or financing of machinery and locally manufactured vehicles for commercial use. Up to 65% of the total financing limit can be used for civil works. For the agriculture sector, loans for production and development purposes are also eligible.
Financing Multiple Commercial Vehicles
- Generally, only one vehicle per borrower is allowed.
- However, borrowers in food franchises or distribution businesses may finance more than one vehicle.
- Vehicles financed under T2 & T3 tiers serve as collateral.
Loan Tenure
Working capital/production loans (T2 & T3): Up to 5 years.
Tier 1 (Up to PKR 0.5 million / 5 Lacs): As per bank policy.
Tier 2 & Tier 3: Long-term/development loans up to 8 years with a maximum grace period of 1 year (subject to bank approval on a case-by-case basis).
What is the Equity Sharing Ratio for new businesses?
For New Businesses: T2 – 90:10 T3 – 80:20
What is the Equity Sharing Ratio for existing businesses?
Nil for all tiers.
In what form Borrower’s Contribution of Equity will be required?
The Borrower’s contribution of equity would be in the form of cash or immovable property and will be required after approval of loan.
What is the Mark-Up Rate?
For Tier 1 Markup: 0% Tenor: Up to 3 years, For Tier 2 the markup rate: 5%. For Tier 3 the markup rate: 7%.
What kind of Security is required for Tier 2 Loan?
Tier 2 is a Clean loan. It is secured only by personal guarantee of the borrower.
What kind of Security is required for Tier 3 Loan?
As per banks policy.
What is the Maximum Number of Loans that a customer can avail?
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.
What is the Maximum Number of Agri Loans that a customer can avail?
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.
Eligible Economic Sectors and Products
All economic sectors and products are eligible under this program. For the agriculture sector, all crop and non-crop activities are covered, including crop production, livestock, poultry, fishery, dairy, and related areas.
How to Fill the Application Form
The application form can be completed through the official online portal: https://pmyp.gov.pk
Early Settlement Charges
There are no early settlement charges for this loan.
Processing Fee
A one-time non-refundable processing fee of PKR 100 is required, which includes the NADRA online CNIC verification fee.
Other Charges
Additional charges, if applicable, will follow the schedule of fees listed by participating banks such as BOP, HBL, Allied Bank, Bank Al Habib, Sindh Bank, Zarai Taraqiati Bank, Al Baraka Bank etc.
Can a Loan Application Be Declined?
Yes, a loan application may be rejected if the applicant:
- Does not meet the eligibility criteria
- Has overdue loans or write-offs in ECIB
- Exceeds the DBR ratio due to excess leverage
- Fails to complete pre-disbursement formalities within the given timeline
Loan Repayment Frequency
Repayments can be made monthly, quarterly, or half-yearly.
Monthly Payment Due Date
Monthly installments are due on the 1st of every month.
Late Payment Charges
A late fee of PKR 1 per 1,000 of the principal amount per day will be applied from the due date until the installment is paid.
Contact for Queries
For general inquiries or complaints, contact the BOP Call Center at 111-267-200.
Final Words
The Prime Minister’s Youth Business and Agriculture Loan Scheme (PMYB&ALS) is a forward-looking initiative by the Government of Pakistan aimed at empowering young entrepreneurs. The main objective of this program is to provide easy and affordable loans to youth, helping them start new businesses or modernize and expand existing ventures. By supporting youth entrepreneurship, the scheme not only creates job opportunities but also contributes significantly to the growth of Pakistan’s economy and strengthens the SME and agriculture sectors.
Under this scheme, eligible young entrepreneurs can secure loans of up to PKR 7.5 million. The program is divided into three tiers (Tier 1, Tier 2, Tier 3), each with its own eligibility, financing limits, and terms. It is crucial to carefully review the instructions and eligibility criteria before applying for any tier. Following the step-by-step application process provided above ensures a smooth, transparent, and successful loan application.
This initiative is part of the government’s broader vision to promote youth-led innovation, encourage self-reliance, and provide financial support through official banking channels. By adhering to the guidelines and submitting complete and accurate information, young entrepreneurs can maximize their chances of approval. Overall, the PM Youth Business and Agriculture Loan Scheme represents a reliable, well-structured, and empowering opportunity for Pakistan’s youth to achieve their business goals while contributing to national economic development.
Nicely update
Thanks
v good
Jazak Allah bhai
This is a perfect scheme, and such schemes should continue.
Thanks sir