Prime Minister Youth Loan Scheme 2025 – Complete Details

The Prime Minister Youth Loan Scheme (PMYLS) is a flagship initiative of the Government of Pakistan aimed at empowering young entrepreneurs, startups, and small businesses by providing them with affordable financing opportunities. This scheme has been designed to create self-employment, boost economic growth, and reduce unemployment across the country.

The initiative reflects the government’s vision to promote entrepreneurship and strengthen Pakistan’s youth, who make up more than 60% of the country’s population. By offering subsidized loans with flexible repayment terms, the scheme opens doors for aspiring business owners to transform their innovative ideas into reality.

Objectives of the PM Youth Loan Scheme

1. Promote Entrepreneurship: Encourage the youth to start their own businesses instead of relying solely on government or private jobs.

2. Generate Employment: By supporting small and medium enterprises (SMEs), the scheme helps create job opportunities for others.

3. Support Economic Growth: Strengthening SMEs contributes to Pakistan’s GDP and ensures sustainable development.

4. Empower Women & Minorities: A special quota is reserved for women and marginalized groups to ensure inclusive economic participation.

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Key Features of the PM Youth Loan Scheme

1. Loan Amounts (Tier System):

   1. Tier 1: Loans up to PKR 0.5 million

   2. Tier 2: Loans from PKR 0.5 million to PKR 1.5 million

   3. Tier 3: Loans from PKR 1.5 million to PKR 7.5 million

2. Markup (Interest Rate):

   1. Tier 1: 0% interest (interest-free loans)

   2. Tier 2: 5% per annum

   3. Tier 3: 7% per annum

3. Repayment Period: 8 years (with a grace period of up to 1 year).

4. Age Limit: Applicants must be between 21 to 45 years old. For IT and e-commerce businesses, the minimum age is 18 years.

5. Business Types Eligible:

   1. Agriculture & Livestock

   2. Manufacturing & Industry

   3. IT & E-commerce

   4. Trading & Services

   5. Small startups and innovative projects

6. Quota for Women: At least 25% of the total loans are reserved for women entrepreneurs.

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Eligibility Criteria

To apply for the PM Youth Loan Scheme, applicants must:

1. Be a Pakistani citizen with a valid CNIC.

2. Fall within the prescribed age limit (21–45 years).

3. Have a viable business idea or an existing small business.

4. Meet the minimum educational or skill requirements relevant to their proposed business.

5. Not be a defaulter of any financial institution.

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How to Apply for the PM Youth Loan Scheme

The application process is simple and completely online:

1. Visit the Official Portal:https://pakistan.gov.pk/

2. Create an Account: Register with your CNIC and personal details.

3. Fill Application Form: Provide information about your business idea, experience, financial requirements, and guarantor details.

4. Upload Documents: Attach scanned copies of CNIC, educational certificates, business plan, and bank account details.

5. Submit Application: Review and submit the form.

6. Loan Processing: The application is forwarded to participating banks (NBP, BOP, HBL, etc.) for verification and approval.

7. Disbursement: Once approved, the loan amount is transferred directly to the applicant’s account.

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Participating Banks

Several commercial and Islamic banks are part of this scheme, including:

1. National Bank of Pakistan (NBP)

2. Bank of Punjab (BOP)

3. Habib Bank Limited (HBL)

4. Meezan Bank

5. Allied Bank

6. United Bank Limited (UBL)

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Benefits of the PM Youth Loan Scheme

1. Access to interest-free or low-interest financing.

2. Encouragement of self-reliance and innovation.

3. Promotion of SMEs, which are the backbone of Pakistan’s economy.

4. Special focus on women, minorities, and rural entrepreneurs.

5. Transparent and digitalized application process.