PM Youth Loan Scheme 2026: Tiers, Eligibility and How to Apply Online

The Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS) – usually called the PM Youth Loan – gives young Pakistanis subsidised loans of up to Rs 7.5 million to start or grow a business or farm. The smallest tier, up to Rs 500,000, is interest-free. You apply online on the PM Youth Programme portal and choose one of the partner banks.

PM Youth Loan tiers and markup rates

The government pays the rest of the bank’s markup as a subsidy. Banks also offer working-capital loans where only markup is paid in the first 2 years, followed by principal plus markup over the next 3 years. There are no early settlement charges, according to the Bank of Punjab’s scheme FAQs.

Who can apply?

• Pakistani citizens with a valid CNIC, including residents of AJK and Gilgit-Baltistan.
• Aged 21 to 45 at the time of applying. For IT and e-commerce businesses the minimum age is 18.
• Start-ups and existing small businesses owned by young people. For partnerships and companies, at least one owner, partner or director must be in the age bracket.
• All sectors are eligible. For agriculture, both crop and non-crop activities (livestock, poultry, dairy, fisheries) qualify.

The age limit applies only when you apply – the loan can run beyond age 45. Current government employees and bank defaulters are generally not eligible.

How to apply online, step by step

1. Open the official portalGo to pmybals.pmyp.gov.pk. Type the address yourself – do not follow links in WhatsApp messages.
2. Enter your CNIC detailsEnter your CNIC number and its issue date, then choose the loan tier you need.
3. Fill in personal and business detailsDescribe your business: what you will sell, the cost of setting up, and how you will earn enough to repay.
4. Choose a partner bankSelect the bank and branch nearest to you. The bank handles appraisal, approval and disbursement.
5. Submit and wait for the bankThe bank contacts you for verification, documents and (for Tiers 2–3) security. Keep your phone on and check SMS.

Documents to keep ready

• Valid CNIC (and the issue date)
• A short, realistic business plan with costs and expected income
• Two references (name and contact)
• Degree or diploma, if you have one (helpful, not compulsory)
• For existing businesses: proof of the business and basic accounts
• For Tiers 2–3: documents the bank asks for to secure the loan

Tier 4: laptops and loans for overseas workers

Tier 4 was added in February 2025 (SBP circular). It has two parts, both at 0% markup for the borrower:

• Laptops for students of HEC-recognised institutions, freelancers and young entrepreneurs aged 18–30.
• Prospective overseas workers: up to Rs 1 million for training, travel, visa and settlement costs. You need a valid job offer or recruitment through a licensed Overseas Employment Promoter, and the loan can be booked jointly with a family member in Pakistan. Read our overseas employment loan guide.

Why applications get rejected

• A weak business plan with no clear way to repay
• A poor credit history or an existing default (the bank checks your eCIB record)
• CNIC details that do not match NADRA, or an expired CNIC
• Incomplete documents or no answer when the bank calls
• Asking for a tier that does not fit the size of the business

PM Youth Loan vs provincial interest-free loans

If you live in Khyber Pakhtunkhwa, compare the PM Youth Loan with the Ehsaas Naujawan Programme (0% up to Rs 5 million) and Ehsaas Hunar. In Punjab, compare it with Asaan Karobar Finance (0% from Rs 1 million). Provincial schemes may be interest-free for larger amounts, but have their own domicile and age rules.