PM Youth Business and Agriculture Loan Scheme: tiers, markup and how to apply

The PM Youth loan scheme (PMYB&ALS) lends young Pakistanis up to Rs 7.5 million (Rs 75 lakh) for a business or farm, in three tiers: up to Rs 5 lakh at 0%, Rs 5 to 15 lakh at 5%, and Rs 15 to 75 lakh at 7%. You must be a resident Pakistani aged 21 to 45, or from 18 for IT and e-commerce. You apply online only at pmybals.pmyp.gov.pk, whose application form was live when we checked on 18 Oct 2026.

What are the PM Youth loan tiers and markup?

Tiers 2 and 3 can include a grace period of up to one year, and working capital loans run up to 5 years. Tier 1 is repaid in equal monthly instalments; crop loans run up to 1 year. If the loan buys a vehicle, the vehicle is the collateral. These terms come from SBP’s scheme page, which we read from an Internet Archive copy of 15 June 2026.

How much of my own money do I need?

For a new business, you put in 10% in Tier 1 and 20% in Tiers 2 and 3; the bank lends the rest. An existing business needs no equity. Up to 65% of the loan can go on civil works.

Who is eligible for the PM Youth loan?

• a resident Pakistani with a CNIC
• aged 21 to 45 (18 to 45 for IT and e-commerce businesses)
• for a partnership or company, at least one owner, partner or director in that age range
• not a government employee
• not a non-resident Pakistani

There is no minimum education, though the portal says a qualification counts in your favour. If your business legally needs a licence, diploma or authorisation, you must already hold it.

How do I apply for the PM Youth loan online?

The portal’s FAQ says there is no paper form: every application goes through the website.

MCB also says you can visit an MCB branch, and the portal points to SMEDA for free guidance on applying: call (042) 111-111-456.

What documents do I need for the PM Youth loan?

The application form lists:

• a passport-size photo and both sides of your CNIC
• your latest degree or certificate, and experience certificates, if you have them
• a licence or chamber or trade body registration, if your business has one
• a recommendation letter from a chamber, trade body or union, which is mandatory for an existing business
• your NTN; if you don’t have one, register with FBR first
• the consumer ID from the electricity bill at your home, and at your office if you have one
• the registration number of any vehicle in your name
• names, CNICs and mobile numbers of two references who are not blood relatives
• monthly business income and expenses, household expenses and other income (estimates for a new business, actual figures for an existing one)

Need an NTN? See how to get an NTN.

Which banks give the PM Youth loan?

The portal says loans come through 15 commercial, Islamic and SME banks. Its dashboard’s bank filter lists more than 30 lenders, from National Bank of Pakistan, HBL, MCB, UBL, Meezan Bank and Bank of Punjab to Zarai Taraqiati Bank and First Women Bank, which may include past participants.

Is there a PM Youth laptop or overseas job loan?

Yes, as Tier 4. Students aged 18 to 30 at HEC-recognised institutions can get a markup-free laptop loan of Rs 150,000, Rs 300,000 or Rs 450,000 over 4 years. People going abroad for work can borrow up to Rs 1 million over 5 years for training, visa, travel and settling in (SBP; Dawn, February 2025). Both have their own links on the portal.

PM Youth loan or Asaan Karobar?

If your business is in Punjab, also look at the Asaan Karobar Card, which lends up to Rs 1 million at 0% to people aged 21 to 57, with no NTN listed. For Rs 1.5 million or more, the PM Youth loan’s 7% Tier 3 competes with Asaan Karobar Finance at 0%, which goes up to Rs 30 million but needs collateral above Rs 5 million. Our business loan comparison sets these against bank SME loans, and Akhuwat lends smaller amounts interest-free.

More guides: Loans · Business loans compared · Asaan Karobar Card · Akhuwat loan · Loan apps approved by SECP