Prime Minister Youth Business and Agriculture Loan Scheme

Introduction

Prime Minister Youth Business and Agriculture Loan Scheme: The Prime Minister’s Youth Business and Agriculture Loan Scheme (PMYB&ALS) is a government initiative aimed at promoting entrepreneurship among youth in Pakistan. The scheme provides loans to youths in the age group of 21 to 45 years who have a business idea or are already running a business. The loans are provided at a concessional interest rate, and they can be used to finance a variety of business activities, such as starting a new business, expanding an existing business, or purchasing equipment.

PMYB and ALS are a part of the Prime Minister’s Youth Program (PMYP), a comprehensive program that aims to provide youth with the skills, knowledge, and resources they need to succeed in the workplace. The PMYP also offers several other initiatives, such as the Pradhan Mantri Yuva Laptop Yojana (PMYLS), which provides laptops to meritorious students studying in public sector higher education institutions.

Eligibility Criteria

To be eligible for a loan under PMYB&ALS, you must fulfill the following criteria:

  • You must be a citizen of Pakistan.
  • Your age should be between 21 to 45 years.
  • You must have a business idea or be running a business already.
  • You must have a valid CNIC (National Identity Card).
  • You must have a clear e-CIB (Credit Information Bureau) report.
  • You should not have any outstanding loan from any financial institution.

Loan Type

PMYB&ALS offers three types of loans:

  • Tier 1 Loans: These loans are up to 0.5 million PKR and have a markup rate of 0%.
  • Tier 2 Loans: These loans are between PKR 0.5 million and PKR 1.5 million and have a markup rate of 5%.
  • Tier 3 Loans: These loans are between 1.5 million PKR and 7.5 million PKR and have a markup rate of 7%.
  • The amount of loan you are eligible for will depend on your business plan, your financial position and the type of loan you are applying for.

Loan Repayment

The repayment tenure of loans under PMYB&ALS is up to 8 years for long term loans and up to 5 years for working capital loans. The repayment schedule will be decided by the bank and will depend on the cash flow of your business.

Security

The security requirements for loans under PMYB and ALS will differ depending on the amount of loan you are applying for. For Tier 1 loan, no security is required. For Tier 2 and Tier 3 loans, the bank may require you to provide collateral, such as a mortgage on your property or a lien on your business assets.

Prime Minister Youth Business and Agriculture Loan Scheme

How To Apply?

To apply for a loan under PMYB&ALS, you need to submit an application form to a participating bank. The application form can be found on the website of State Bank of Pakistan (SBP). You will need to provide the following information on your application form:

  • Your name, address and contact information
  • your CNIC number
  • your business plan
  • your financial statements
  • Letter of recommendation from a business or community leader
  • The bank will review your application and contact you if the loan is approved.

Conclusion

Prime Minister Youth Business and Agriculture Loan Scheme is a great opportunity for the youths in Pakistan who want to start or expand their business. The loans are provided at a concessional interest rate, and they can be used to finance a variety of business activities. If you are a young entrepreneur, I encourage you to apply for loans under PMYB&ALS. This could be the start of something great.

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