Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS): The 2025 Complete Guide

Are you a young Pakistani with a business idea but no capital? Or perhaps a student needing a high-end laptop for freelancing? The Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS) is currently the most powerful government initiative designed to solve exactly these problems.

Updated for December 2025, this scheme has been expanded to include not just business loans, but also financing for laptops and overseas employment. Here is everything you need to know about the interest rates, new tiers, and the online application process.

What is PMYB&ALS?

This is a federal government initiative aimed at providing affordable capital to the youth of Pakistan. Unlike private bank loans with high interest rates (20%+), this scheme offers loans that are either Interest-Free (0% Markup) or highly subsidized (5% - 7% Markup).

The 4 Loan Tiers (Latest 2025 Structure)

The scheme is now divided into four distinct tiers to cater to everyone from small shopkeepers to large SME owners and freelancers.

Tier 1: The Interest-Free Micro Loan

This is the most popular category for startups and small businesses.

Loan Amount: Up to PKR 500,000 (5 Lakh).
Markup Rate: 0% (Completely Interest-Free).
Security: None. No property or collateral is required. You only need a personal guarantee.
Best For: Dhabas, general stores, home-based businesses, and small livestock setups.

Tier 2: The Expansion Loan

If you need more than 5 Lakh, this tier offers substantial capital at a rate far below inflation.

Loan Amount: Over PKR 5 Lakh up to 1.5 Million (15 Lakh).
Markup Rate: 5% Fixed.
Security: Clean Loan. Surprisingly, most banks do not require collateral for this tier either; a personal guarantee often suffices (subject to bank policy).
Best For: Expanding an existing shop, buying light machinery, or increasing inventory.

Tier 3: The SME Loan

For larger business setups requiring heavy investment.

Loan Amount: Over PKR 1.5 Million up to 7.5 Million (75 Lakh).
Markup Rate: 7% Fixed.
Security: Required. You will need to provide collateral (gold, property, or liquid assets) as per the bank's requirements.
Best For: Small factories, large-scale agriculture, and established SME expansion.

Tier 4: The New 2025 Addition (Laptops & Overseas)

The government has recently added "Tier 4" to specifically target skilled youth and students.

Laptop Financing: Loans up to PKR 1.5 Lakh - 4.5 Lakh for students and freelancers to buy hardware.
Rate: 0% for the end user.
Overseas Employment: Loans up to PKR 1 Million to cover visa, ticket, and processing costs for skilled workers going abroad.

Eligibility Criteria

To apply, you must meet the following simple requirements:

Citizenship: You must be a Pakistani national with a valid CNIC.
Age Limit:
General Business: 21 to 45 Years.
IT / E-Commerce Businesses: 18 to 45 Years (You can apply at 18 if you have at least Matric/Intermediate education).
Business Status: Both Startups (New businesses) and Existing businesses can apply.

How to Apply (Step-by-Step)

The application process is centralized and 100% Online. You do not need to visit a bank branch to submit the form.

Visit the Official Portal: Go to pmyp.gov.pk.
Register: Click on the PM Youth Business & Agriculture Loan Scheme button and register with your CNIC and Mobile Number.
Select Your Tier: Choose the loan amount you need.
Choose Your Bank: You can select your preferred bank (e.g., National Bank of Pakistan, Bank of Punjab, Meezan Bank, HBL, etc.) from the list.
Fill the Form: Enter your personal details, business plan, and financial estimates.
Submit: Pay the non-refundable processing fee of approx. PKR 100 (usually via mobile app or at the branch if instructed) and submit.

Required Documents

Before you sit down to apply, ensure you have scanned copies (photos) of these documents on your phone or computer:

CNIC (Front and Back).
Latest Passport-sized Photograph.
Educational Degree/Certificate (if applicable, mandatory for IT loans at age 18).
Proof of Experience (if any).
License / Registration (for existing businesses).
Business Plan: A simple write-up explaining what your business is and how you will generate profit.

Crucial Tips for Approval

Do Not Fake It: Banks verify your location. Ensure your business address (or proposed location) is accurate.
Pick the Right Tier: If you have no collateral (property), stick to Tier 1 or Tier 2. Applying for Tier 3 without assets will lead to rejection.
Avoid Scams: There are NO AGENTS for this scheme. Anyone asking for a "commission" to get your loan approved is a scammer. The only fee is the official Rs. 100 processing fee.

Ready to apply? Visit pmyp.gov.pk now and take the first step toward financial independence!