The Government of Pakistan has launched the Prime Minister Youth Business Loan Scheme to support unemployed youth and aspiring entrepreneurs across the country. Citizens aged 18 to 45 can apply for interest-free loans of up to Rs. 500,000 to either start a new business or expand an existing one. Applications are submitted online, and the repayment period is spread over 3 years with the first 6 months as a grace period.
Eligibility Criteria for the Youth Loan Program
To qualify for this government loan scheme, applicants must:
- Be Pakistani citizens aged 18–45 years.
- For IT and e-commerce businesses, the minimum age is 18 years.
- Must not be a government employee.
- No educational qualification is mandatory; even primary pass candidates can apply.
- Must apply online only, as physical submissions are not accepted.
Categories of the Prime Minister Youth Business Loan Scheme
The Prime Minister Youth Business Loan Scheme is divided into three tiers based on the loan amount:
| Tier | Loan Range | Interest Rate | Eligibility |
|---|---|---|---|
| Tier 1 | Up to Rs. 500,000 | 0% (Interest-Free) | New or expanding businesses |
| Tier 2 | Rs. 500,001 – Rs. 1.5M | Low Interest | Small to medium enterprises |
| Tier 3 | Rs. 1.5M – Rs. 7.5M | Low Interest | Large-scale business setups |
Most applications are approved under Tier 1, which offers interest-free financing.
Loan Repayment Terms and Calculator Overview
Applicants must repay the loan over a period of 3 years, with the first 6 months being installment-free. According to the official loan calculator:
- Loan amount: Rs. 500,000
- Tenure: 36 months (3 years)
- Monthly installment: Approximately Rs. 13,890 (after grace period, adjusted to ~Rs. 15,000)
Repayment begins after the first 6 months, giving applicants time to stabilize their businesses.
Application Statistics – Progress So Far
The Prime Minister Youth Business Loan program has received a significant response:
- Total Applications Received: 3,371,000
- Under Process: 1,135,000
- Approved Applications: 293,000
- Loans Disbursed: 287,541
- Total Disbursed Amount: Rs. 219 Billion
- Rejected Applications: 1,943,000
⚠️ Common Mistakes leading to rejection:
- Incorrect data entry
- Missing documents
- Incomplete business plans
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Step-by-Step Guide to Apply for the Prime Minister Youth Business Loan Scheme
Follow these steps to ensure a successful application process:
- Open your browser and search for “PM Youth Loan” or go to the https://pmybals.pmyp.gov.pk/ .
- Click on “Prime Minister Youth Business Loan Scheme“.
- Scroll to “Apply for Loan” and click.
- Enter the following:
- CNIC number and issue date
- Select Tier 1 (Rs. 500,000)
- Choose your preferred bank (e.g., NBP, BOP, Askari, HBL, or Bank of Khyber)
- Fill in the following sections:
- Personal information (Name, CNIC, Date of Birth, etc.)
- Upload CNIC images (front and back)
- Select your business type and category
- Enter income details (optional but recommended)
✅ After submission, a message will appear: “Your application has been submitted successfully.”
Business Plan: A Key Requirement
Your business details must be clear and authentic. You must specify:
- Business Name
- Industry Category (e.g., Agriculture, Services, Manufacturing)
- Business Type (e.g., Tuition center, Retail store)
- Monthly expenses
- Number of employees
- Relevant skills or experience
⚠️ Avoid generic or false data — over 1.9 million applications were rejected due to fake or incomplete business details.
Tracking Your Application Status
You can check your application status through the “Track Application” feature:
- Enter CNIC number, mobile number, and date of birth
- Application status is color-coded:
- Green: Verified by NADRA
- Yellow: Pending NADRA verification
- Red: Rejected
If stuck at Yellow, file a complaint via the Citizen Portal for NADRA verification.
Key Tips for Approval
- Use your correct CNIC and issue date
- Upload clear images of documents
- Choose a realistic business idea
- Enter actual income and expenses if known
- Do not ignore fields marked with an asterisk (*)
Final Words & Future Updates
Once approved, the selected bank will contact you directly. Keep your mobile active and unsilenced. For updates, applicants are encouraged to visit our site for the latest news about the Prime Minister Youth Loan Scheme.