PM Youth Business and Agriculture Loan Scheme Limit Raised to Rs 25 Million

What Was Announced

• Prime Minister Shehbaz Sharif increased the maximum loan limit under the PM’s Youth Business and Agriculture Loan Schemes from Rs 7.5 million to Rs 25 million [1, 2].
• Chairman of the Prime Minister’s Youth Programme (PMYP) Rana Mashhood Ahmad Khan announced the introduction of Tier-4, which was approved by the Economic Coordination Committee (ECC) and ratified by the Federal Cabinet [3].
• The minimum eligibility age for loans was reduced from 21 to 18 years [1, 2].
• The Prime Minister directed that 30 per cent of loans under the program be reserved for women [1, 2].
• For the 2026-27 fiscal year, authorities have allocated Rs 292 billion to Rs 292.5 billion to provide loans to approximately 266,700 young people [1, 3].
• The Small and Medium Enterprises Development Authority (SMEDA) was directed to provide assistance, including business consultancy, technical services, and guidance for start-ups [1, 2].
• Since January 2023, 581,341 young people have reportedly received loans totaling Rs 313.9 billion [1].

The revised financing structure for the Prime Minister’s Youth Business and Agriculture Loan Scheme (PMYBALS) includes the following tiers [3]:

• Tier-1: Loans up to Rs 500,000 at zero markup.
• Tier-2: Loans from Rs 500,000 to Rs 1.5 million at 5 per cent markup.
• Tier-3: Loans from Rs 1.5 million to Rs 7.5 million at 7 per cent markup.
• Tier-4: Loans exceeding Rs 7.5 million up to Rs 25 million at 8 per cent markup for a maximum period of eight years.
• Tier-5: Interest-free loans of up to Rs 450,000 for laptops and up to Rs 1 million for prospective overseas workers.

Eligibility requirements include:

• Young Pakistanis aged 21 to 45 can apply for various sectors [3].
• Individuals aged 18 and above can apply for financing specifically in information technology (IT) and e-commerce [3].
• Both existing businesses and new ventures in the agricultural and commercial sectors are eligible, with Islamic financing options available [3].

To support these tiers, the government reduced the banks’ profit margin on Tier-3 and Tier-4 loans from KIBOR plus 3 per cent to KIBOR plus 2.4 per cent. This change does not affect the markup rates for borrowers, which remain at 7 per cent and 8 per cent respectively [3].

How to Apply or Check

Young people seeking funding for business or agriculture must apply online through the scheme’s application portal. Paper application forms are not required [1].