Every government business loan in Pakistan is cheap compared with the market, but they are built for different borrowers, and the wrong application burns the one resource a founder cannot replace: months. The federal PM Youth Loan Scheme is the general door: individuals aged 21 to 45 borrowing up to Rs 7.5 million, interest-free at the smallest tier. Khyber Pakhtunkhwa’s Ehsaas Naujawan is the generous but demanding one: up to Rs 5 million at zero markup, reserved for registered partnerships of three to five young partners. And the Punjab Rozgar Scheme, with the Asaan Karobar products beside it, serves Punjab’s traders and SMEs from Rs 1 lakh of clean financing to Rs 1 crore secured, and up to Rs 3 crore under Asaan Karobar Finance. This page compares the three on the terms that decide real cases.
The Schemes at a Glance
| Scheme | Loan | Markup | Who it serves |
|---|---|---|---|
| PM Youth Loan Scheme | Up to Rs 7.5 million | 0% to Rs 5 lakh; 5% to Rs 15 lakh; 7% above | Individuals 21 to 45 (18 for IT), nationwide |
| Ehsaas Naujawan, Bank of Khyber | Rs 1 million to Rs 5 million | 0% | KP partnerships of 3 to 5 partners, 18 to 35 |
| Ehsaas Naujawan, Akhuwat | Rs 100,000 to Rs 500,000 | 0% | KP individuals |
| Punjab Rozgar Scheme | Rs 100,000 to Rs 1 crore | Subsidised | Punjab residents 20 to 50, new and existing businesses |
PM Youth Loan: The Federal Default
Three tiers, one portal (pmybals.pmyp.gov.pk), fifteen partner banks: up to Rs 500,000 interest-free on a personal guarantee; Rs 500,001 to Rs 1.5 million at 5%; up to Rs 7.5 million at 7% with bank-policy security. New businesses contribute equity (about 10% in Tier 2, 20% in Tier 3), a quarter of lending is reserved for women, and by June 2026 the banks had disbursed 555,791 loans worth Rs 287.6 billion. If you borrow alone and live outside KP, start here. Our PM Youth Loan guide explains rejection reasons honestly.
Ehsaas Naujawan: Zero Markup, Group Entry
KP’s programme splits in two: Akhuwat lends individuals Rs 100,000 to Rs 500,000 interest-free, while the Bank of Khyber lends Rs 1 million to Rs 5 million, also interest-free over up to eight years with up to twenty months’ grace, but only to a registered firm of three to five partners, all permanent KP residents aged 18 to 35. Quotas reserve 15% for women and smaller shares for minorities and persons with disabilities. Our Ehsaas Naujawan guide explains why the partnership rule exists and how windows open in rounds.
Punjab Rozgar and Asaan Karobar: Punjab’s Ladder
PSIC and the Bank of Punjab run the province’s ladder: Rozgar clean financing of Rs 1 to 10 lakh without a property mortgage, secured financing to Rs 1 crore above that, a Rs 2,000 processing fee, and the portal rozgar.psic.punjab.gov.pk. Beside it, the Asaan Karobar products (akf.punjab.gov.pk) stretch further: a card line up to Rs 10 lakh and finance up to Rs 3 crore. Our Punjab Rozgar guide sets out the categories and the business-plan standard banks actually apply.
Choosing Your Door in One Minute
- Solo founder, any province, up to Rs 5 lakh: PM Youth Tier 1 (0%) or, in KP, Akhuwat under Naujawan.
- A real team in KP: Naujawan’s Rs 10 to 50 lakh at zero markup is the cheapest large money in the country, if you accept the partnership structure.
- Punjab trader needing working capital fast: Rozgar clean tier or the Asaan Karobar Card.
- Above Rs 75 lakh: only the Punjab secured and Asaan Karobar routes reach there among these three
Business Loan Schemes: FAQs
PM Youth Tier 1 (up to Rs 500,000) and both Ehsaas Naujawan components (up to Rs 500,000 individually via Akhuwat, and Rs 1 to 5 million to KP partnerships via the Bank of Khyber) carry zero markup.
Punjab’s Asaan Karobar Finance reaches Rs 3 crore; Punjab Rozgar secured financing reaches Rs 1 crore; the federal PM Youth Loan caps at Rs 7.5 million.
No. The Bank of Khyber component lends only to registered firms of three to five partners. Individuals in KP use the Akhuwat component (to Rs 500,000) or the federal PM Youth Loan.
PM Youth Tiers 1 and 2 take a personal guarantee only. Larger loans (PM Youth Tier 3, Rozgar secured) follow bank security policy. New businesses may also need an equity contribution.
No. Government employees are excluded from the PM Youth Loan and from Ehsaas Naujawan partnerships, and the same spirit applies across these schemes.
PM Youth Loan at pmybals.pmyp.gov.pk; Ehsaas Naujawan’s bank component at ehsaasnaujawan.bok.com.pk; Punjab Rozgar at rozgar.psic.punjab.gov.pk and Asaan Karobar at akf.punjab.gov.pk. All applications are online and free.
Before you apply, gather the documents every bank in this comparison will ask for, and check them against the scheme you have chosen. A valid CNIC, proof of residence, and a clear record of any existing loans are the starting point for all three programmes. New businesses should also prepare a simple business plan that states what the money will buy, what it will earn, and how it will be repaid, because that plan is where many otherwise eligible applications lose time. If you are applying as a partnership in KP, register the firm first and confirm that every partner meets the age and residence rules before you submit anything. If you are applying in Punjab, decide in advance whether you need clean financing or secured financing, since that choice changes the documents and the security you must offer. Keep copies of every submission, note the reference number, and follow up through the official portal rather than through an agent who charges a fee, because all of these applications are free. Finally, borrow only the amount your business can repay from its own earnings, not the maximum on offer, and compare the markup, the grace period, and the repayment term together, not the headline loan size alone. A smaller loan on the right terms will serve a new business better than a larger loan that strains its cash flow in its first year.
Last updated: November 4, 2026