Ehsaas Naujawan Programme: Interest-Free Loans for Youth of Khyber Pakhtunkhwa
The Ehsaas Naujawan Programme gives young people aged 18–35 in Khyber Pakhtunkhwa interest-free loans to start or grow a business – from Rs 100,000 through Akhuwat up to Rs 5 million through the Bank of Khyber. A proposed revision would raise the programme from Rs 3 billion to Rs 5 billion.
At a glance
| Run by | Sports & Youth Affairs Department / Directorate of Youth Affairs, KP |
|---|---|
| Loan size | Rs 100,000 – 500,000 (Akhuwat) · Rs 0.5 – 5 million (Bank of Khyber) |
| Markup | 0% (interest-free) |
| Age | 18 – 35 years |
| Repayment | Akhuwat: 36–60 monthly instalments · BoK: 20-month grace + 76 instalments (about 8 years) |
| Helpline | Bank of Khyber: 091-111-265-265 |
| Programme size | Rs 3,000 million (original) → Rs 5,000 million (proposed) |
| Apply | BoK online portal · nearest Akhuwat branch |
What the programme aims to do
- Give youth interest-free loans on soft terms to start economic and innovative enterprises
- Support employment, entrepreneurship and self-employment without gender discrimination
- Help rural youth become drivers of the local economy
- Support new small businesses, including e-commerce and digital marketing, and help existing ones expand
The aim, in the PC-I’s words, is for young people to become job providers, not job seekers.
What changed in 2026
- Bank of Khyber loans for individuals: a new window of Rs 0.5–1.5 million for solo entrepreneurs, alongside cluster loans of Rs 1.5–5 million for groups of 3–5.
- Older businesses can apply: the business age limit rises from 2 years to 5 years.
- Less paperwork: a registered Form-H / partnership deed or an attestation by a government officer of BPS-17 or above is accepted for opening the business account.
- Division-wise allocation: funds are shared by division instead of fixed district quotas, so unused money can move to high-demand districts in the same division.
- More money: Bank of Khyber’s share rises from Rs 1,000m to Rs 2,000m, and Akhuwat’s from Rs 2,000m to Rs 3,000m (proposed, following the Provincial Cabinet meeting of 12 August 2026).
Bank of Khyber vs Akhuwat: which window is for you?
| Bank of Khyber | Akhuwat | |
|---|---|---|
| Loan size | Individual Rs 0.5–1.5m; cluster (3–5 youth) Rs 1.5–5m | Rs 100,000–500,000 |
| Markup | 0% | 0% |
| Grace period | 20 months | 1 month |
| Repayment | 76 monthly instalments (about 8 years in total) | 36–60 equal monthly instalments |
| Security | Personal guarantees of the partners | Social guarantee (a guarantor) |
| How to apply | Online: ehsaasnaujawan.bok.com.pk | At the nearest Akhuwat branch |
| Best for | Larger ventures and group businesses | Small shops, trades, home-based and first businesses |
Who can apply
- Age 18 to 35 years
- Permanent resident of Khyber Pakhtunkhwa (including the Merged Districts) with a valid CNIC
- A viable business idea, or an existing business up to 5 years old, located in Khyber Pakhtunkhwa
- Not a defaulter of any bank or financial institution, and not blacklisted by NACTA
Extra Bank of Khyber conditions: graduates or skilled youth with a clear business plan; the business must be a legal entity; a clean credit record (e-CIB); and businesses on the Government of Pakistan negative list (arms and ammunition, explosives, radioactive substances, security printing, alcoholic beverages) are not funded. Siblings can apply if each meets the criteria. Madaris students, transgender persons and members of minority communities are eligible, and female entrepreneurs are encouraged to apply.
Quotas: at least 15% of loans for women and 5% for persons with disabilities and minorities. Rural youth and madaris students are also a focus of the programme.
How to apply
Bank of Khyber (Rs 0.5 – 5 million)
- Apply online on the official ENP portal and choose Individual or Cluster.
- BoK’s technical team checks whether your business plan is viable.
- If approved, complete the documents (Form-H or a BPS-17 officer’s attestation); BoK verifies the business in the field.
- Attend the compulsory training in business tools and financial management.
- BoK opens the business account and pays out the loan.
Help with the online application: Bank of Khyber helpline 091-111-265-265.
If your business plan is rejected, a Grievance Redressal Committee at the Directorate of Youth Affairs can review it.
Akhuwat (Rs 100,000 – 500,000)
- Visit your nearest Akhuwat branch with your CNIC, a photo, your guarantor’s CNIC and a utility bill (if available).
- Akhuwat carries out a social and economic appraisal and takes a social guarantee.
- After approval, the loan is paid out and repaid in monthly instalments.
Already applied? See Akhuwat loan status or how to check your status.
What would my instalment be?
| Loan | Window | Monthly instalment | Repayment period |
|---|---|---|---|
| Rs 300,000 | Akhuwat | Rs 8,333 | 36 months |
| Rs 1,000,000 | BoK individual | Rs 13,158 | 76 months after 20-month grace |
| Rs 1,500,000 | BoK cluster | Rs 19,737 | 76 months after 20-month grace |
Calculate your own instalment →
What happens after you apply (Bank of Khyber)
The revised PC-I sets out seven stages for Bank of Khyber loans:
| Stage | What happens |
|---|---|
| 1. Online application | You apply on the portal as an Individual or a Cluster and upload the required documents. |
| 2. Technical assessment | BoK’s technical team checks whether your business plan is viable, including the 5-year business age limit. |
| 3. Registration and verification | Approved applicants complete Form-H or a BPS-17 officer’s attestation to open the business account. BoK verifies the business in the field. |
| 4. Grievance (if rejected) | Rejected proposals can go to a Grievance Redressal Committee, including the Project Director and M&E Officer of the Directorate of Youth Affairs. |
| 5. Training | Compulsory training in business tools and financial management, followed by sector-specific expert training. |
| 6. Disbursement | BoK opens the business account and pays the loan. |
| 7. Monitoring | BoK monitors the business. A third-party firm evaluates impact, and the Directorate carries out spot checks. |
How applications are checked
Bank of Khyber checks eligibility, verifies your CNIC through NADRA, runs a credit check (CIB) with the State Bank, and calls you to confirm details. Your business plan is scored on a standard scorecard, and a minimum score of 65 is needed for approval. Staff also visit your business or premises. The partners give personal guarantees instead of property collateral.
Akhuwat focuses on your character and standing in the community, takes references, and assesses whether you can repay. Its main security is a social guarantee from your guarantor or community.
What if a borrower cannot repay?
| Bank of Khyber | Akhuwat | |
|---|---|---|
| First step | A loan is marked past due right after a missed instalment; SMS and phone reminders follow | Branch staff contact you personally to understand the problem |
| Next | Formal recovery notices, field visits, and contact with guarantors | Rescheduling if you face genuine hardship; mediation by community elders |
| Last resort | Legal action. A write-off follows SBP rules, but the borrower and guarantors stay liable | In extreme hardship (death, permanent disability, catastrophic loss) a loan may be written off as a charitable grant |
If you are struggling, talk to your bank or branch early. Both partners are set up to help borrowers who are honest about problems.
Women, minorities and persons with disabilities
The programme reserves at least 15% of loans for women and 5% for persons with disabilities and minorities. The PC-I notes that by October 2025 only 249 of 4,902 Akhuwat loans (about 5%) had gone to women, so the revised plan adds targeted steps:
- Simpler applications and alternative verification for women without formal business registration
- Non-traditional guarantees for women-led enterprises at Bank of Khyber
- Outreach through women’s colleges, universities and community centres, and more female loan officers
- Pre-loan entrepreneurship orientation and mentoring for women borrowers
Who oversees the programme
A Project Steering Committee chaired by the Additional Chief Secretary (Planning & Development) oversees the programme. Members include the Secretaries of Finance, P&D and Sports & Youth Affairs, the Managing Director of the Bank of Khyber, the Director Youth Affairs and a microfinance representative. The revision adds a Project Management Unit for monitoring, an independent impact study by IMSciences, quarterly monitoring with TEVTA experts, and audit by the Auditor General of Pakistan.
Progress so far
| Bank of Khyber | Akhuwat | |
|---|---|---|
| Applications received | 15,662 | 14,346 |
| Approved | 379 businesses (Rs 839 million) | 9,927 loans |
| Disbursed | — | Rs 1,936 million |
Figures as of August 2026 (Directorate of Youth Affairs progress report and revised PC-I).
Funding plan (revised, proposed)
| Financial year | Amount (Rs million) |
|---|---|
| 2024-25 | 1,100.00 |
| 2025-26 | 1,273.31 |
| 2026-27 | 300.00 |
| 2027-28 | 1,213.30 |
| 2028-29 | 1,113.40 |
| Total | 5,000.00 |
The revision also adds a Project Management Unit for monitoring and an independent impact study.
Related guides
- Ehsaas Naujawan Programme for the Merged Districts (new)
- Akhuwat loan status
- Ehsaas Hunar loan scheme
- Check loan status – all schemes
- All KP loan schemes
Updates
- 3 Nov 2026: Added the application stages, how applications are checked, default handling, the women’s quota plan and programme oversight, from the revised PC-I.
- 3 Nov 2026: Revised PC-I (Rs 5 billion) details added: individual BoK loans, 5-year business age, simpler documents, division-wise allocation.
- Aug 2026: Progress updated: BoK 379 businesses approved; Akhuwat 9,927 loans disbursed.
Frequently asked questions
Is the Ehsaas Naujawan loan really interest-free?
Yes. Both the Bank of Khyber and the Akhuwat windows charge 0% markup. You repay only the amount you borrowed.
Ehsaas Naujawan loan kaise apply karein?
Bank of Khyber loan (Rs 5 lakh se 50 lakh) ke liye official portal ehsaasnaujawan.bok.com.pk par online apply karein. Akhuwat loan (Rs 1 lakh se 5 lakh) ke liye qareebi Akhuwat branch jayein.
Kya akela apply kar sakta hoon? (Can I apply alone?)
Under the revised plan, yes: Bank of Khyber offers individual loans of Rs 0.5–1.5 million. Group (cluster) loans of Rs 1.5–5 million are for 3–5 partners. Akhuwat loans are individual.
How long do I get to repay a Bank of Khyber loan?
You start repaying after a 20-month grace period, then pay 76 monthly instalments – about 8 years in total.
How long do I get to repay an Akhuwat loan?
Akhuwat loans are repaid in equal monthly instalments over 36 to 60 months, according to the KP Directorate of Youth Affairs. The revised PC-I plans a 1-month grace period and 36 instalments.
Can siblings apply?
Yes, as long as each of them meets the eligibility criteria (Bank of Khyber).
What is the age limit?
18 to 35 years.
Are women encouraged to apply?
Yes. At least 15% of loans are earmarked for women, and 5% for persons with disabilities and minorities.
When will the revised terms apply?
After the revised PC-I is approved. We will update this page when that happens.
Official sources
- KP Directorate of Youth Affairs – Ehsaas Naujawan Programme
- Bank of Khyber – Ehsaas Naujawan online portal
- Bank of Khyber – Ehsaas Naujawan eligibility and FAQs
- Akhuwat – branch network
- Revised PC-I, Ehsaas Naujawan Programme (ADP-240171), Sports & Youth Affairs Department, October 2026
Always confirm details with the official source before applying.