Interest-free business loans for KP youth

The Ehsaas Naujawan Program KPK gives young people in Khyber Pakhtunkhwa interest-free loans to start a new business or grow a young one. It is run by the KP government's Directorate of Youth Affairs, with two lenders: Akhuwat for small loans of Rs 100,000 to Rs 500,000, and the Bank of Khyber (BoK) for bigger loans of Rs 1 million to Rs 5 million to groups of 3 to 5 partners.

There is no markup and no service charge. You only pay back what you borrow. On 13 August 2026 the KP cabinet raised the programme's funding from Rs 3 billion to Rs 5 billion, because of strong demand and a growing number of applications.

The two loans at a glance

Dawn and The News reported special quotas for women and persons with disabilities in the Akhuwat loans. The Bank of Khyber says women entrepreneurs are encouraged to apply.

Who can apply

For both loans:

• You must be a permanent resident of Khyber Pakhtunkhwa, including the merged districts, with a valid CNIC.
• Your business must be in Khyber Pakhtunkhwa.
• You need a workable business idea, or a small business you want to expand.

Age limits: the Bank of Khyber sets 18 to 35. For Akhuwat, Dawn and The News (January 2025) reported 18 to 40. An earlier KP Youth Affairs notice (November 2024) said 18 to 35 for both, so check your age limit at the Akhuwat branch.

Extra rules for the Bank of Khyber loan:

• You cannot apply alone. You must form a registered firm, company or partnership of 3 to 5 partners. Brothers and sisters can be partners together.
• It is for new start-ups, or businesses less than two years old that can grow.
• Government, semi-government and autonomous body employees cannot apply.
• You must have a clean credit record (e-CIB). People with a loan overdue by more than 60 days are not eligible.
• One firm can get only one loan.
• Businesses on the government's negative list, such as arms, explosives and alcohol, are not accepted.

How to apply

Akhuwat loan (Rs 100,000 to Rs 500,000):

1. 1Find your nearest branch on the Akhuwat branch list. The KP Youth Affairs website also lists Akhuwat branches in KP.
2. 2Visit the branch with your original CNIC and tell staff you want to apply under the Ehsaas Naujawan Programme.
3. 3Fill in the application form at the branch. Akhuwat staff assess your business and tell you what else to bring.

Bank of Khyber loan (Rs 1 million to Rs 5 million):

1. 1Form and register a firm or partnership of 3 to 5 people.
2. 2Prepare a business plan that shows how the business will earn money.
3. 3Apply online on the BoK portal, ehsaasnaujawan.bok.com.pk. The link is on the Bank of Khyber Ehsaas Naujawan page.
4. 4A team of professionals assesses your idea. If approved, the loan is paid in instalments (tranches) as you complete each step.

For questions, the Directorate of Youth Affairs KP gives 091-9219668 (Monday to Friday, 9am to 5pm).

Documents and guarantees

Bank of Khyber loan:

• A valid CNIC for every partner.
• Proof your firm or partnership is registered.
• A business plan.
• Your own 10% share. The loan covers up to 90%. For an existing business, equipment or stock can count as your share. A new business must deposit its share in a bank account.
• A personal guarantee from every partner, and a guarantee from the firm itself. All partners are responsible for repaying the loan.

Akhuwat loan: bring your original CNIC. We could not confirm Akhuwat's full document and guarantor list for this programme from an official source, so ask at the branch.

Beware of fake websites and agents

Many websites use the programme's name and logo. Most are blogs, and some ask for money. Remember:

• The only online application is on the Bank of Khyber's own portal. Its address ends in bok.com.pk.
• Akhuwat loans are applied for in person at an Akhuwat branch. Akhuwat's website is akhuwat.org.pk.
• Applying is free. No one can charge you a fee to process or "approve" your loan.
• Do not send money, your CNIC photos or OTP codes to anyone on WhatsApp who promises a loan.

See our guide: How to spot a fake government scheme website.

Other KP Ehsaas youth schemes

When the programme was launched in January 2025, the KP government also announced Ehsaas Hunar (skills) and Ehsaas Rozgar (jobs) programmes, along with Ehsaas Apna Ghar for housing. These are separate schemes. We have not confirmed that they are taking applications now.

Frequently asked questions

How do I apply online for the Ehsaas Naujawan Program?

Only the Bank of Khyber loan (Rs 1 million to Rs 5 million, for groups of 3 to 5) has an online form, at ehsaasnaujawan.bok.com.pk. The smaller Akhuwat loan (up to Rs 500,000) is applied for at an Akhuwat branch.

Who is eligible for the Ehsaas Naujawan Program?

Permanent residents of Khyber Pakhtunkhwa, including merged districts, with a valid CNIC and a business idea based in KP. The age limit is 18 to 35 for the Bank of Khyber loan, and 18 to 40 for Akhuwat as reported in 2025. Government employees cannot get the BoK loan.

Is the Ehsaas Naujawan loan really interest-free?

Yes. The Bank of Khyber says there is no markup and no other charge. You repay only the amount you borrowed, in equal monthly instalments.

Can one person apply for the Bank of Khyber Ehsaas loan?

No. The Bank of Khyber loan is only for a registered firm or partnership of 3 to 5 people. A single person should apply for the Akhuwat loan instead.

What is the last date to apply?

No closing date has been announced. The KP cabinet added Rs 2 billion in August 2026 because applications keep coming in. Any "last date" you see on unofficial websites is not from the government or the lenders.

Sources

• The Express Tribune, 13 August 2026: K-P cabinet boosts youth funding to Rs5b. Budget raised from Rs 3 billion to Rs 5 billion.
• Bank of Khyber, checked 29 September 2026: Ehsaas Naujawan Programme. Rs 1 million to Rs 5 million, age 18 to 35, 3 to 5 partners, up to 8 years with up to 20 months' grace, guarantees, eligibility rules.
• Directorate of Youth Affairs KP, 7 November 2024: Ehsaas Naujawan Programme. Akhuwat repayment terms, how to apply, helpline 091-9219668.
• Dawn, 15 January 2025: Ehsaas Nojawan Programme launched. Akhuwat age 18 to 40, quotas for women and persons with disabilities, sister programmes.
• The News, January 2025: KP govt starts distributing interest-free loans among youth