Last updated: October 14, 2026
Many young people in Pakistan want to start a small business but do not have the money. The Prime Minister’s Youth Business and Agriculture Loan Scheme (PMYB&ALS) is a government-backed financing scheme that banks offer for exactly this. It is a loan, not a grant: you have to pay it back, with mark-up on most tiers.
This guide explains the loan sizes, the mark-up, who can apply, the documents and how to apply, based on what the participating banks publish.
Please note: We are not the State Bank, the Prime Minister’s Youth Programme or any bank. We summarised the scheme pages of Askari Bank and Soneri Bank (Askari’s page was last updated on 2 October 2026). The tier names, rates and limits can differ between banks and can change, so confirm everything with the bank and on the official portal. We could not confirm whether applications are open right now. Nobody can get you a loan for a fee. Never pay an agent.
What Is the PM Youth Business and Agriculture Loan Scheme?
It is a scheme in which participating banks give loans to young entrepreneurs and farmers at lower mark-up than normal business loans. Askari Bank’s page says it replaces the earlier PMKJ-YES scheme. It covers business loans, working capital and agriculture loans, including machinery and locally manufactured commercial vehicles.
Loan Tiers and Mark-up
According to Askari Bank’s page:
| Tier | Maximum loan | Your own share (new business) | Mark-up |
|---|---|---|---|
| Tier 2 | Rs. 1.5 million | 10% (90:10) | 5% a year |
| Tier 3 | Rs. 7.5 million | 20% (80:20) | 7% a year |
| Tier 4 | Rs. 0.45 million | 20% (80:20) | 0% |
- Soneri Bank’s page says loans start from Rs. 1.5 million up to Rs. 7.5 million at 7% a year “or as per latest SBP directives”, with a special rate of 6.5% for women-owned businesses and persons with disabilities.
- Another guide (Startup.pk) describes a Tier 1 of up to Rs. 500,000 at 0%. The tier numbering is not the same across sources, so ask the bank which tier fits your amount.
- Up to two loans per borrower are allowed (one long-term and one short-term) within the Rs. 7.5 million limit, according to the bank pages.
Repayment Period
- Long-term loans: up to 8 years
- Working capital: up to 5 years
- Grace period: Soneri Bank mentions up to one year, included within the 8 years
- Civil works: up to 65% of the loan can go on construction or fit-out
- Insurance: Askari Bank lists life, vehicle and building insurance as compulsory
Who Can Apply?
- A Pakistani citizen with a CNIC and a business idea
- Age 21 to 45. For IT and e-commerce businesses the minimum is 18. Tier 4 applicants must be 18 to 30, according to Askari Bank.
- For a partnership or company, one owner, partner or director within the age limit is enough
- For IT and e-commerce businesses, at least matriculation
- Individuals, sole proprietors, partnership firms and limited companies can apply
- About 25% of loans are for women, according to Askari Bank
Documents You May Need
- CNIC (verified by NADRA) and a photograph
- A feasibility report or business plan for a new business, or annual financial statements for an existing one
- Education certificates (for IT businesses)
- Latest electricity bill and two references with CNIC copies
- NTN certificate (needed before the loan is paid out)
- For Tier 3: bank statement and papers of the property or other security offered
- Entity documents if you apply as a partnership or company
The bank can ask for other documents under its own policy. See also our checklist of common documents for how to keep your papers ready.
How to Apply
- Open the PM Youth Programme portal. The banks link to pmyp.gov.pk. If the page does not open, search “PM Youth Programme” and check that the address ends in .gov.pk.
- Log in with your CNIC and fill in the application form.
- Choose the loan type, the tier and a participating bank.
- Upload the documents and submit.
- Keep your tracking number. The bank then contacts you, and the bank decides on the loan under its own credit policy.
Askari Bank gives the number 051-111-000-787 for questions. Approval is not guaranteed, and each bank decides under its own rules.
Before You Borrow: Think Like a Business Owner
- Do the sums first. Work out the monthly instalment and be sure your business can pay it even in a slow month.
- Write a simple plan: what you will sell, to whom, your costs and your expected sales. A bank will ask for it, and you need it anyway.
- Borrow only what you need. A smaller loan is easier to pay back.
- Keep your own share ready. The scheme asks you to put in 10% to 20% for a new business.
Beware of Fake Offers
- No agent can get you a loan for a fee. The application is online and free on the official portal.
- Do not share your CNIC, OTP or bank details with anyone on a call or WhatsApp.
- Use only the official portal and your bank’s branch or number.
Read our list of scam red flags.
Frequently Asked Questions
Is this a free loan?
No. It is a bank loan that you repay. Some tiers have 0% mark-up, but most carry 5% to 7%, and you still repay the principal.
What is the age limit?
21 to 45 for most applicants, and 18 for IT and e-commerce businesses, according to the banks.
Can women apply?
Yes. About 25% of loans are meant for women, and Soneri Bank lists a lower 6.5% rate for women-owned businesses.
Are applications open now?
We could not confirm this. Check the PM Youth Programme portal or ask a participating bank.
Do I need collateral?
For Tier 3, the bank asks for security under its policy. The lower tiers may not. Ask your bank.
Final Words
A loan can help a good idea grow, but only if you plan the repayment. Read the bank’s terms, apply only through the official portal, and never pay a middleman. For more government schemes in Pakistan, keep visiting EarnExpertHub.
Sources: Askari Bank, Soneri Bank, Startup.pk.
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