The Prime Minister’s Youth Business and Agriculture Loan Scheme (PMYB&ALS) is the federal government’s youth loan programme: business and farming loans up to Rs 7.5 million through 15 partner banks, at markups far below commercial rates. The smallest loans, up to Rs 500,000, are completely interest-free; the higher tiers carry fixed 5% and 7% markup. Applications are online only, at pmybals.pmyp.gov.pk. By June 2026, banks had disbursed 555,791 loans worth Rs 287.6 billion under the scheme, according to State Bank of Pakistan data. This page explains the three tiers honestly, including the equity contribution many applicants only discover late. Provincial borrowers should also compare the Punjab Rozgar Scheme, which runs in parallel.
| Fact | Detail |
|---|---|
| Scheme | PM Youth Business and Agriculture Loan Scheme (PMYB&ALS) |
| Loan | Up to Rs 7.5 million across three tiers |
| Tier 1 | Up to Rs 500,000 at 0% markup, up to 3 years, personal guarantee only |
| Tier 2 | Rs 500,000 to Rs 1.5 million at 5%, up to 8 years including 1 year grace |
| Tier 3 | Rs 1.5 million to Rs 7.5 million at 7%, up to 8 years, security per bank policy |
| Age | 21 to 45 years (18 for IT and e-commerce businesses) |
| Apply | Online only at pmybals.pmyp.gov.pk; choose one of 15 partner banks |
| Disbursed | 555,791 loans, Rs 287.6 billion, by June 2026 (State Bank data) |
The Three Tiers Explained
The tier is decided by how much you borrow, and each step up changes the markup, the tenure and what the bank can ask from you:
| Tier | Loan size | Markup | Tenure | Security |
|---|---|---|---|---|
| Tier 1 | Up to Rs 500,000 | 0% | Up to 3 years | Personal guarantee only |
| Tier 2 | Rs 500,001 to Rs 1,500,000 | 5% | Up to 8 years (working capital up to 5) | Personal guarantee only |
| Tier 3 | Rs 1,500,001 to Rs 7,500,000 | 7% | Up to 8 years | As per the bank’s credit policy |
- Tiers 2 and 3 include a grace period of up to one year before instalments begin.
- A new business must contribute its own equity: about 10% of project cost in Tier 2 and 20% in Tier 3. Expanding an existing business is exempt from this contribution.
- One person can hold at most two loans under the scheme (typically one long-term and one working capital), and total borrowing cannot exceed Rs 7.5 million.
- A quarter of the scheme’s lending is reserved for women entrepreneurs.
Who Can Apply for the PM Youth Loan?
- A Pakistani citizen resident in Pakistan, aged 21 to 45. For IT and e-commerce businesses, the lower age is 18.
- You have a genuine business or agriculture plan, for a new venture or the expansion of an existing one.
- You are not a government employee; government servants are not eligible.
- Your banking record is clean enough for the partner bank’s credit checks.
Both men and women apply on the same terms, and agriculture applicants are served through the same portal, with ZTBL among the partner banks handling farm lending.
How to Apply at pmybals.pmyp.gov.pk
- Open the official portal pmybals.pmyp.gov.pk and choose Apply for Loan.
- Enter your CNIC and its issue date, and select your tier.
- Complete the multi-step form: personal details, business plan, the amount requested, and your chosen partner bank from the listed banks.
- Submit. There is no paper form and no branch application for this scheme.
- The bank processes the case: verification, credit checks and, for larger tiers, appraisal of the business and security.
- Track your application through the PMYP portal’s status service rather than through agents.
The application itself is free. The real costs to plan for are the equity contribution on new businesses in Tiers 2 and 3, and normal banking documentation the bank requests during processing.
Why Applications Get Rejected
- The business plan does not show how the loan is repaid; banks lend against cash flow, not enthusiasm.
- The applicant’s credit record shows a default, or the CNIC and records do not match across documents.
- Equity for a new business in Tier 2 or 3 is not available when the bank asks.
- The requested amount does not fit the tier’s purpose, for example working capital asked on long-term terms.
A rejection by one bank is not a rejection by the scheme: the portal lets you understand the reason, fix the file, and present a stronger case.
PM Youth Loan Scheme: FAQs
Up to Rs 7.5 million in three tiers: up to Rs 500,000 interest-free, Rs 500,001 to Rs 1.5 million at 5% markup, and Rs 1.5 million to Rs 7.5 million at 7% markup.
Only Tier 1 is: loans up to Rs 500,000 carry 0% markup. Tier 2 carries 5% and Tier 3 carries 7%, both fixed and far below normal commercial rates.
21 to 45 years for most businesses. For IT and e-commerce, applicants from 18 years old can apply.
Tiers 1 and 2 need only a personal guarantee. Tier 3 security follows the bank’s credit policy. New businesses also contribute equity: about 10% in Tier 2 and 20% in Tier 3, waived for expansions.
Online only, at pmybals.pmyp.gov.pk. Enter your CNIC, choose your tier and one of the 15 partner banks, complete the form and submit. There is no paper application.
No. Government employees are not eligible for this scheme.
Before you apply, take one practical step that saves many applicants a rejected file: match the tier to the money you can actually repay, not the maximum you hope to borrow. A smaller Tier 1 loan, repaid on ime, builds a banking record that makes a larger application easier later, while an oversized Tier 3 quest brings equity, security and appraisal questions that a new business may not yet be ready to answer. Prepare your CNIC, business plan and cost estimates in advance, check that your records match across documents, and keep copies of everything you submit through the portal. If you are unsure, start with the official portal guidance rather than paying an agent, because the application itself is free.
Keep exploring: Business Loan Schemes · Federal Schemes · All Government Schemes
Last updated: November 4, 2026.