The Government of Pakistan has once again strengthened its support for young entrepreneurs by continuing the Prime Minister’s Youth Business and Agriculture Loan Scheme (PMYB&ALS) in 2026. This flagship initiative aims to promote self-employment, support startups, and expand small businesses by offering interest-free and low-markup loans to youth across the country.
With subsidized financing, flexible repayment plans, and a special quota for women, the scheme is playing a key role in reducing unemployment and encouraging entrepreneurship in Pakistan.
In this article, you will learn about loan tiers, eligibility criteria, required documents, markup rates, and the complete step-by-step application process.
What Is PM Youth Business and Agriculture Loan Scheme?
The Prime Minister’s Youth Business & Agriculture Loan Scheme is a government-backed financing program designed to help young Pakistanis start or expand businesses and agricultural projects.
The scheme supports:
WhatsApp Channel- Startups and small businesses
- Existing Small and Medium Enterprises (SMEs)
- Agricultural production and development projects
- IT and e-commerce ventures
Loans are provided through major commercial banks under supervision of the State Bank of Pakistan.
Loan Tiers and Markup Rates 2026
The scheme is divided into three tiers based on loan amount and interest rate.
PM Youth Loan Scheme – Latest Loan Structure
| Tier | Loan Amount | Markup Rate | Repayment Period | Security |
| Tier 1 (T1) | Up to Rs. 500,000 | 0% (Interest-Free) | Up to 3 Years | Personal Guarantee |
| Tier 2 (T2) | Rs. 500,000 – Rs. 1.5 Million | 5% Fixed | Up to 8 Years | Personal Guarantee |
| Tier 3 (T3) | Rs. 1.5 Million – Rs. 7.5 Million | 7% Fixed | Up to 8 Years | As per Bank Policy |
This structure allows both small and large entrepreneurs to access affordable financing.
Eligibility Criteria for PM Youth Loan Scheme 2026
To apply for this scheme, applicants must fulfill the following conditions:
General Eligibility
- Age limit: 21 to 45 years
- Special age limit for IT and e-commerce businesses: 18 years minimum
- Education requirement for IT category: At least Matric pass
- Citizenship: Must be a Pakistani citizen with valid CNIC or NICOP
- Business type: Startups, SMEs, existing businesses, and farmers
Agriculture Sector
- Farmers registered under SBP agricultural classification
- Loans available for crop production, livestock, dairy, fisheries, and farm development
Women Quota
- 25 percent of total loans are reserved exclusively for female entrepreneurs
Documents Required for PM Youth Loan Application
Before applying online, applicants must prepare the following documents:
- Passport-size photograph
- CNIC (front and back scanned copy)
- Educational degrees or technical certificates (if available)
- Experience certificates (if applicable)
- Business plan or feasibility report
- CNIC numbers and names of two references (not close relatives)
- Electricity bill Consumer ID for address verification
A strong business plan increases your chances of approval.
How to Apply for PM Youth Business and Agriculture Loan Scheme
The application process is fully online through the official PM Youth Program portal.
Step-by-Step Application Process
Step 1: Visit Official Website
Go to the official portal: pmyp.gov.pk
Step 2: Select Loan Scheme
Click on the Bank Form option for PM Youth Business & Agriculture Loan Scheme.
Step 3: Choose Your Bank
Select a participating bank such as:
- National Bank of Pakistan
- Bank of Punjab
- HBL
- Allied Bank
- Meezan Bank
- Other partner banks
Step 4: Fill Online Application
Enter your personal details, business information, and upload required documents.
Step 5: Pay Processing Fee
A small Rs. 100 non-refundable fee is charged for NADRA verification.
Step 6: Track Application
You can track your application status online using your CNIC and mobile number.
Processing Time and Loan Limit Rules
- Average processing time: Up to 45 days
- You can avail maximum two loans (one short-term and one long-term)
- Combined loan limit must not exceed Rs. 7.5 million
Final approval depends on bank evaluation and credit assessment.
Benefits of PM Youth Loan Scheme
This scheme offers several major advantages:
- Interest-free loans for small startups
- Very low markup for higher loans
- Long repayment period up to 8 years
- Special quota for women entrepreneurs
- Support for agriculture and IT sectors
- Government-backed and secure financing
It is one of the most affordable business financing programs in Pakistan.
FAQs (Short Answered)
What is the maximum loan amount under this scheme?
You can get up to Rs. 7.5 million under Tier 3.
Is there any interest-free loan option?
Yes. Loans up to Rs. 500,000 under Tier 1 are completely interest-free.
Can students apply for this loan?
Yes, especially for IT and e-commerce businesses, students aged 18 and above can apply.
How long does approval take?
Usually 30 to 45 days, depending on the bank and verification process.
Is collateral required?
For Tier 1 and Tier 2, only personal guarantee is required. Tier 3 follows bank security policy.
Final Words
The PM Youth Business and Agriculture Loan Scheme 2026 is a powerful opportunity for young Pakistanis to turn their business ideas into reality. With interest-free financing, low markup rates, and wide eligibility, this program is helping thousands of entrepreneurs build sustainable careers and contribute to Pakistan’s economy.
Apply today through the PM Youth Program portal and take your first step toward becoming a successful entrepreneur.
