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The government of Pakistan has introduced a new initiative to help brilliant young minds pursue their entrepreneurial dreams. Prime Minister Shahbaz Sharif has recently launched the Youth Business and Agricultural Loan Schemes to promote self-employment and a norm of job creation among the youth in the country.
The PM’s Youth Loan scheme will allow people aged between 21 and 45 to apply for a loan of up to 75 lakh to start their own business. However, for those interested in the IT and e-commerce sectors, the lower age limit is 18.
“There will be no interest rate on the loan of up to PKR 0.5 million. A 5% interest will be charged on the loan of over PKR 0.5 million to 1.5 million,” the prime minister said during the launch ceremony in Islamabad. “A 7% interest rate will be charged on the loan of over PKR 1.5 million to PKR 7.5 million.”
The loan facility will also help youth in rural areas introduce and promote the use of sophisticated technology in agriculture. Innovation in this field could allow businesses to be more sustainable, environmentally friendly, safer, and of course, profitable.
Eligibility Criteria for PM’s Youth Loan Scheme in Pakistan
Those applying for the prime minister’s youth loan scheme should be residents of Pakistan and fall within the age bracket specified above. Moreover, government employees, politically exposed people, and those employed in the bank selected for loan application are not eligible for this initiative.
It is also important to mention that providing a National Tax Number (NTN) is not mandatory to submit the application. However, according to the official website of the scheme, having an NTN can increase the chances of selection.
Please feel free to check out our guide on how to become a tax filer in Pakistan for more information.
What Will You Need to Apply for the Loan Scheme
Here are the documents you will need to complete your application.
- Passport size picture
- Scanned copy of CNIC (both sides)
- Latest educational degree or certificate (Matric, Intermediate, Bachelor, Master, PhD etc.)
- Experience certificate(s), if any
- License or registration with a chamber or trade body, if any
- In the case of an existing business, a recommendation letter from the respective chamber, trade body or union
- Financial statements
- Business plan
- Last six months’ bank statements
You must also have the following details handy:
- National Tax Number
- Consumer ID of electricity bill of your current home address
- Consumer ID of electricity bill of your current office address, if any
- Registration number of any vehicle registered in your name
- Name, CNIC and mobile numbers of two references (other than blood relatives)
- Details of monthly income(s) and expense(s) for household, business, and others
How to Apply for PM’s Youth Loan Scheme
Here is a step-by-step guide on how to apply for the new youth business loan scheme in Pakistan.
- Open the registration portal by clicking here. If that doesn’t work, please type (https://pmyp.gov.pk/bankform/newapplicantform) in the browser.
- Click on the ‘Instructions’ button and thoroughly read each pointer to avoid any confusion.
- Add your CNIC number, the CNIC issue date, and select a tier:
- Tier 1: A loan of up to PKR 5 lakh with 0% markup
- Tier 2: A loan of up to PKR 15 lakh with a 5% markup
- Tier 3: A loan of up to PKR 75 lakh with a 7% markup
- Click enter to get redirected to the application form
- The form is divided into multiple sections. Start with Section A: Initial Selection and fill in the relevant fields to the best of your ability. Please note that fields marked with an asterisk (*) must be filled.
- Once you are done with all nine sections, add the details of your chosen references in the relevant fields. These details include their names, your relation to them, their CNIC numbers, and their mobile numbers.
- At the end of the form, you will see a Declaration Form. Please recheck your application at least twice before signing the last section.
Please note that all of the information you’ve entered will be checked by NADRA. You also cannot make any corrections or changes after submitting the form. Moreover, applicants can save their progress at any time or choose to submit the form in one sitting. Although if you have all of your documents on hand, the registration will take around 30 minutes or less.
This brings us to the end of our blog on how to apply for the Youth Business and Agricultural Loan Schemes. If you are looking to apply for these loans, it should be noted that the following MFIs/MFBs are offering Tier 1 loans of PMYP & ALS:
- Bank of Punjab
- National Bank of Pakistan
- Askari Bank
- Habib Bank Limited
- Meezan Bank
If you are looking for some entrepreneurial inspiration, here are 39 low-cost business ideas you can start in 2023.
Stay connected to Zameen Blog – the best property blog in Pakistan – to learn about the latest government initiatives and facilities. Please visit the official website for PM’s youth loan scheme for more information on the topic. You can also write to us at firstname.lastname@example.org.