Business loans for young people, up to Rs 5 lakh with no interest
PM Youth Business & Agriculture Loan Scheme (PMYB&ALS)
Official government website
In short
- Who can apply
- Pakistanis aged 21 to 45, or 18 and over for IT businesses
- Where
- All of Pakistan
- How to apply
- Online only, on pmyp.gov.pk
- Cost
- You repay the loan to the bank
Official government website
On this page
The Prime Minister's Youth Business and Agriculture Loan Scheme (PMYB&ALS) is a federal scheme that lends young Pakistanis money to start or expand a business or farm, on easier terms than a normal bank loan. Loans are given through 15 commercial, Islamic and SME banks, and the smallest loans carry no markup at all.
This is a loan. You repay it to the bank. It is not a grant.
Loan tiers and markup
| Tier | Loan amount | Markup |
|---|---|---|
| Tier 1 | Up to Rs 0.5 million (Rs 5 lakh) | 0% |
| Tier 2 | Above Rs 0.5 million, up to Rs 1.5 million | 5% |
| Tier 3 | Above Rs 1.5 million, up to Rs 7.5 million | 7% |
The programme's portal also has separate application links for laptop financing and for prospective overseas workers.
In the 2026-27 federal budget, the government set aside about Rs 9.5 billion to subsidise these loans.
Who can apply
- Resident Pakistanis, aged 21 to 45
- 18 and above for IT and e-commerce businesses
- Not open to government employees or non-resident Pakistanis
- No minimum education is required, although banks take it into account. If your business legally needs a qualification, licence or certificate, you must hold it.
How to apply online
There is no paper form. Applications are accepted online only:
- Open the official loan application form at pmyp.gov.pk/bankform/newapplicantform. You can also reach it from pmybals.pmyp.gov.pk under "Apply for Loan".
- Fill in your personal details, the business you plan, the loan amount and the bank you prefer.
- Submit it. The bank you choose assesses your application and business plan.
The portal has manuals in Urdu and English explaining how to fill in the form, and a loan calculator for your repayment schedule.
Free help with your business plan
SMEDA gives free guidance to applicants. Its Punjab head office is in Aiwan-e-Iqbal, Egerton Road, Lahore. Phone (042) 111-111-456.
Track your application
Use the "Track" option on pmybals.pmyp.gov.pk to check the status of your loan application.
Frequently asked questions
Is the PM youth loan interest-free?
Only Tier 1, up to Rs 0.5 million, is at 0%. Tier 2 is at 5% and Tier 3 at 7%.
Can I apply at a bank branch?
No. The official portal says no physical application is needed: all applications are made online.
Is this the same as Punjab's Asaan Karobar loans?
No. PMYB&ALS is the federal scheme and is open across Pakistan. Punjab has its own interest-free business loans: see CM Punjab Asaan Karobar Finance and the Asaan Karobar Card.
Sources
- Prime Minister's Youth Programme, official portal: pmybals.pmyp.gov.pk. Tiers, markup, eligibility, online-only applications and tracking. Checked 24 September 2026.
- Dawn, 20 June 2026: Budget 2026-27. Rs 9.5 billion subsidy.
Key sections
- Loan tiers and markup
- Who can apply
- How to apply online
- Track your application
Need help?
Applying is free. Only use websites that end in .gov.pk, and never pay an agent to add your name to a list. Stay safe
Last checked . Always confirm on the official website before you apply.
Official source: pmyp.gov.pk/bankform/newapplicantform