PM Youth Programme Loan Limit Raised to Rs25 Million

The Prime Minister’s Youth Programme has raised the maximum loan under the Prime Minister’s Youth Business & Agriculture Loan Scheme from Rs7.5 million to Rs25 million, through a new Tier-4. The increase was approved by the Economic Coordination Committee and ratified by the Federal Cabinet. PMYP Chairman Rana Mashood Ahmad Khan announced it at a press conference.

Who Can Apply

The scheme is open to new ventures and existing businesses in business and agriculture, and Islamic financing is available. Tier-4 supports agro-processing, cold chains, mechanised farming, solar energy, manufacturing and exports. The age limit is 21 to 45 years, or 18 for IT and e-commerce.

How to Apply

Applications can be made through the Prime Minister’s Digital Youth Hub at www.pmyp.gov.pk or the PMYP mobile app on Google Play and the Apple App Store. No agent or recommendation is needed, and banks decide each application on merit.

Loan Tiers

• Tier-1: up to Rs0.5 million at 0%

• Tier-2: Rs0.5 million to Rs1.5 million at 5%

• Tier-3: Rs1.5 million to Rs7.5 million at 7%

• Tier-4 (new): Rs7.5 million to Rs25 million at 8%, for up to eight years

• Tier-5: interest-free loans for laptops (up to Rs0.45 million) and prospective overseas workers (up to Rs1 million)

The bank margin on Tier-3 and Tier-4 loans was cut from KIBOR + 3% to KIBOR + 2.4%, while borrower rates are unchanged.

Targets and Record

The target for FY 2026-27 is Rs292.5 billion, to finance about 266,700 young Pakistanis and create about 835,000 jobs. Funding is split equally between agriculture and small businesses. Borrowers have repaid more than 99% of loans, and of the borrowers since 2023, 62% are in agriculture and more than 121,000 are young women.