the Government of Pakistan under Prime Minister Shehbaz Sharif is operating the Prime Minister Youth Business & Agriculture Loan Scheme (PMYB&ALS). This scheme is aimed especially at youth and small businesses / agricultural entrepreneurs. It helps people start or grow businesses by giving loans on favorable terms.
What is PMYB&ALS?
- Full name Prime Minister’s Youth Business & Agriculture Loan Scheme
- Purpose To support youth startups small and medium enterprises (SMEs) and agriculture sector. It helps them with working capital machinery production and development needs
- Administered by State Bank of Pakistan (SBP) and multiple commercial banks such as Allied Bank HBL Bank of Punjab Sindh Bank and others
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Who is Eligible?
To apply for this loan you need to meet some basic criteria
| Criterion | Details |
|---|---|
| Citizenship | Must be a Pakistani citizen with valid CNIC |
| Age | 21 to 45 years old in general. However for businesses in IT/E-Commerce lower age limit is 18 years |
| Business Type | Startups or existing businesses or agricultural operations. For partnerships or companies only one of the partners or directors must satisfy the age criteria |
| Agriculture Sector | If applying under agriculture must comply with SBP’s “Indicative Credit Limits & Eligible Items for Agriculture Financing 2020” |
What Loan Amounts / Tiers Are Available?
The scheme divides loans into three tiers based on size. Each tier has different terms
| Tier | Loan Amount Range | Mark-up Rate / Interest | Tenor |
|---|---|---|---|
| Tier 1 (T1) | Up to Rs. 0.5 million | 0% mark-up free | Up to 3 years equal monthly instalments. In case of crop or agricultural loans up to 1 year lump sum repayment with crop cycle |
| Tier 2 (T2) | Above Rs. 0.5 million and up to Rs. 1.5 million | 5% per annum | Up to 8 years for long term or development with grace period up to one year. For working capital or production loans up to 5 years |
| Tier 3 (T3) | Above Rs. 1.5 million up to Rs. 7.5 million | 7% per annum | Same as T2 long term or development up to 8 years with one year grace. Working capital loans up to 5 years |
What Types of Loans & What They Cover
You can use these loans for different purposes
- Working capital to run everyday operations
- Term loans / Long-term & Development loans for expansion and equipment
- Leasing or financing of machinery and locally manufactured vehicles for commercial use. Only one vehicle per borrower is allowed
- In agriculture production and development loans for crop livestock poultry fishery dairy and others
Equity / Borrower Contribution
- For new businesses you may need to contribute some equity
- In T2 usually 90:10 debt equity ratio (you give 10%)
- In T3 usually 80:20 debt equity ratio (you give 20%)
- For existing businesses equity requirement is generally nil for all tiers
Security / Collateral Requirements
- Tier 1 and Tier 2 loans are mostly clean loans with minimal security. Usually personal guarantee required
- Tier 3 loans require collateral depending on bank policy
- If vehicle is financed the vehicle itself may serve as collateral
Fees Charges & Mark-up Details
- Processing fee usually Rs. 100 non-refundable
- Mark-up rates by tier 0% (T1) 5% (T2) 7% (T3)
- Other charges may include bank documentation or valuation fees depending on the bank
Loan Repayment / Tenor & Grace Period
- Grace period for long term or development loans (T2 and T3) is up to 1 year
- Repayment schedule
- T1 up to 3 years equal monthly instalments. For crop loans up to 1 year lump sum repayment
- T2 and T3 long term loans up to 8 years. Working capital or production loans up to 5 years
How to Apply Online
Here is a step by step method to apply
- Visit the Prime Minister Youth Programme (PMYP) portal
- Go to “Bank Form / New Applicant Form” and select your bank from the dropdown
- Fill in your details such as name CNIC age address business type sector and loan tier
- Upload required documents
- Wait for verification and approval by bank. Processing time should not exceed 45 days
Required Documents
To support your application you will need
- Valid CNIC with NADRA verification
- Passport size photographs
- Business plan or feasibility report for new businesses
- Financial statements of existing business if applicable
- E-CIB or credit history proof with clean record
- Property or asset documents if collateral is offered
- Trade licence bank statements or proof of address if applicable
Special Focus Youth & Women
- The scheme targets youth so age brackets are strictly followed
- 25% of loans are reserved for women borrowers
Participating Banks
Banks include Allied Bank HBL Bank Al Habib Bank of Punjab Sindh Bank and more. The scheme is open across all provinces of Pakistan
Advantages & Things to Watch Out
Advantages
- Low mark-up compared to normal bank loans. Tier 1 even has 0%
- Long repayment time with grace period makes repayment easy
- Loans available without heavy collateral in T1 and T2
- Opportunities for youth and farmers who often struggle with financing
Things to watch out
- Applications can be rejected if credit history is poor
- New business loans in T2 and T3 need borrower equity
- Delays may happen if documents are incomplete
- Agricultural loans must be repaid in line with crop cycles
- Tier 3 loans require proper collateral
Myths & FAQs
- Myth Everyone gets approved. Fact Only those who meet criteria and have clean credit record are approved
- Myth All loans are free of mark-up. Fact Only T1 is 0%. T2 and T3 have 5% and 7% mark-up
- Myth Application is only physical. Fact Application is mainly online through PMYP portal
Step by Step Summary
- Check age and business criteria
- Select loan tier based on need
- Collect documents and prepare a business plan
- Apply online via PMYP portal and choose bank
- Submit and track application
- Wait for bank verification and approval
- Receive loan and follow repayment schedule
Latest Updates 2025
- The scheme is promoted under PM Shehbaz Sharif during 2025
- Some banks have simplified their application forms
- Agricultural financing options are being expanded
Conclusion
The Shahbaz Sharif Loan Scheme 2025 is a golden chance for youth and small businesses in Pakistan. With easy terms low mark-up and long repayment options it can support entrepreneurs and farmers to start or expand. By preparing documents correctly and applying online anyone who fits the criteria can get real financial help and grow their future.
