Prime Minister Youth Business & Agriculture Loan Scheme
In order to provide opportunities for access to finance to the young entrepreneurs and Agri sector of the country, the Government of Pakistan has introduced a low cost financing scheme under the banner of Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB & ALS). The scheme offers soft loans to meet long-term and short-term financing needs.
Purpose of Finance
- To promote youth for Business Expansion / Setting up of new business.
- Give equal opportunity to Women for Businesses / startups.
Finance Loan Limit
Finance of loan is segregated into following tiers:
- Tier 2 (T2): Above Rs.0.5 million and up to Rs.1.5 million.
- Tier 3 (T3): Above Rs.1.5 million and up to Rs.7.5 million.
Financing Type:
- Term loans/working capital loans/financing of machinery.
- Up to 65% of the total financing limit can be availed for civil works.
- For agriculture, production and development loans are eligible..
PRICING
- T2: 5% p.a.
- T3: 7% p.a
Security:
- T2: Clean (secured only by the personal guarantee of the borrower).
- T3: As per bank policy
Debt- Equity Ratio:
For New Businesses:
- T2: 90-10
- T3: 80-20
For Existing Businesses: NIL for all tiers
TENOR
- T2 & T3: Up to 8 years for long-term/ development loans, with a maximum grace period of up to one year.
Fees & Charges:
- Processing Fees Rs.100
- Other Charges. At Actual.
Geographical Distribution:
- Whole of Pakistan
Sectors and Products:
All sectors and products. Moreover, in the case of agriculture, all crop and non-crop sectors (including crop production, livestock, poultry, fishery, dairy, etc.) are also eligible.
DOCUMENTATION
- Online Loan Application
- Financials and cash flow projections
- Bank Statement
- Any other document may be required by the bank.
- Feasibility/Business Plan
- Guarantor documents as per bank policy, if any
- Collateral documents, if applicable
HOW TO APPLY
Online Application Form on the PM YOUTH Portal:
- For effective monitoring, an online application form is prescribed through the PM Youth Programme (PMYP) Portal. The form would be both in English and Urdu, as provided on the portal.
- All citizens of Pakistan holding a CNIC aged between 21 and 45 years are eligible.
- For IT/E-Commerce related businesses, the lower age limit will be 18 years. At least matriculation or equivalent education is required. The above-age limit condition is applicable to individuals and sole proprietors. In the case of all other forms of business, including partnerships and companies, only one of the owners, partners, or directors must be in the age bracket prescribed above.
- Small and medium enterprises for startups and existing business expansion aged between 21 and 45 years are eligible.
- Agriculture farmers are eligible as per SBP’s "Indicative Credit Limits and Eligible Items for Agriculture Financing 2020".
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