In a significant move aimed at fostering self-employment and innovation among the nation’s youth, the Government, led by former Prime Minister Shehbaz Sharif, has introduced the Youth Business and Agricultural Loan Schemes. These schemes are set to empower young individuals in Pakistan and drive economic growth.
Under the Prime Minister’s Youth Loan scheme, individuals between the ages of 18 and 45 can apply for loans of up to 7.5 million PKR to kickstart their entrepreneurial journey. Notably, for those interested in the IT and e-commerce sectors, the lower age limit for eligibility is just 18.
One standout feature of this initiative is the favorable interest rate structure. Loans up to 500,000 PKR will incur no interest, while a modest 5% interest rate applies to loans ranging from 500,000 PKR to 1.5 million PKR. For loans exceeding 1.5 million PKR and up to 7.5 million PKR, a still attractive 7% interest rate is in place.
What sets this loan facility apart is its inclusive approach, reaching out to youth residing in rural areas with the aim of bringing advanced technology into the agriculture sector. This infusion of innovation promises a more sustainable, eco-friendly, and prosperous future for businesses operating in this domain.
Eligibility Criteria for PM’s Youth Loan Scheme in Pakistan
To qualify for the Prime Minister’s Youth Loan Scheme, applicants must be Pakistani residents within the specified age group. Government employees, politically exposed individuals, and employees of the designated bank for loan applications are not eligible for this opportunity.
While not mandatory, possessing a National Tax Number (NTN) can enhance your chances of approval, as indicated on the official scheme website.
Documents Required for Loan Scheme Application
Here is a checklist of the documents needed to complete your loan application:
- Passport-size photograph
- Scanned copy of CNIC (both sides)
- Latest educational degree or certificate (Matric, Intermediate, Bachelor, Master, PhD, etc.)
- Experience certificate(s), if applicable
- License or registration with a chamber or trade body, if applicable
- For existing businesses, a recommendation letter from the respective chamber, trade body, or union
- Financial statements
- Business plan
- Last six months’ bank statements
In addition to the above, you should have the following information readily available:
- National Tax Number
- Consumer ID from your current home address electricity bill
- Consumer ID from your current office address electricity bill (if applicable)
- Vehicle registration number if you own any
- Names, CNICs, and mobile numbers of two references (excluding blood relatives)
- Details of monthly income and expenses for household, business, and other expenditures
How to Apply for PM’s Youth Loan Scheme
Here is a step-by-step guide to applying for the Youth Business Loan Scheme in Pakistan:
- Access the registration portal by visiting PMYP Official Website.
- Click on the ‘Instructions’ button and carefully read through each directive to prevent any confusion.
- Enter your CNIC number, CNIC issue date, and select your preferred loan tier:
- Tier 1: Loans up to 500,000 PKR with 0% markup
- Tier 2: Loans up to 1.5 million PKR with a 5% markup
- Tier 3: Loans up to 7.5 million PKR with a 7% markup
- Click ‘Enter’ to access the application form.
- The form is divided into multiple sections. Begin with Section A: Initial Selection and complete all relevant fields. Please note that fields marked with an asterisk (*) are mandatory.
- Once you’ve filled in all nine sections, provide the details of your chosen references, including their names, your relationship with them, their CNIC numbers, and their mobile numbers.
- Towards the end of the form, you will encounter a Declaration Form. Prior to signing the final section, it’s crucial to double-check your application for accuracy.
Remember that all the information provided will be verified by NADRA, and no corrections or alterations can be made post-submission. Applicants can save their progress at any time and complete the registration in one sitting, a process that typically takes around 30 minutes or less when all required documents are readily available.