In a significant move to bolster youth entrepreneurship and small businesses, the Government of Pakistan has increased the loan ceiling under the Prime Minister’s Youth Business and Agriculture Loan Scheme (PMYB and ALS) from Rs 500,000 to Rs 1.5 million.
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The PMYB & ALS is designed to provide financial assistance to young entrepreneurs aiming to establish or expand their businesses. The scheme offers loans across three tiers:
- Tier 1 (T1): Loans up to Rs 0.5 million.
- Tier 2 (T2): Loans above Rs 0.5 million and up to Rs 1.5 million.
- Tier 3 (T3): Loans above Rs 1.5 million and up to Rs 7.5 million.
With the recent enhancement, the T2 loan limit has been raised to Rs 1.5 million, providing greater financial support to aspiring entrepreneurs.
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Key Features of the PMYB & ALS Scheme
- Eligibility: Pakistani citizens aged between 21 and 45 years with entrepreneurial potential. For IT/E-Commerce-related businesses, the minimum age is 18 years.
- Loan Tenure:
- T1: Up to 3 years.
- T2 and T3: Up to 8 years, including a grace period of up to one year.
- Markup Rates:
- T1: Interest-free.
- T2: 5% per annum.
- T3: 7% per annum.
- Security Requirements:
- T1 and T2: Personal guarantee of the borrower.
- T3: As per the bank’s credit policy.
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Special Provisions for Women Entrepreneurs
Recognizing the pivotal role of women in economic development, the government has directed the introduction of a special package for women entrepreneurs in small-scale businesses. This initiative aims to simplify loan access and provide targeted support to female business owners.
Application Process for the PMYB & ALS Scheme
Interested applicants can apply through the official PMYB & ALS portal. The process has been streamlined to ensure ease of access and transparency.
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Prime Minister’s Youth Business Program Internship Details
The Prime Minister’s Youth Business Program also offers internship opportunities for skill development.
Application Submission Deadline:
- The specific deadline for the 2025 internship program applications is yet to be announced. Applicants are advised to regularly check the official PMYB & ALS website for updates.
Required Documents:
- Valid CNIC.
- Educational certificates.
- Domicile certificate.
- Recent passport-sized photographs.
- Updated resume/CV.
Conclusion
The enhancement of the loan limit under the PMYB & ALS to Rs 1.5 million reflects the government’s commitment to fostering entrepreneurship and economic growth among the youth. By providing increased financial support and introducing special provisions for women entrepreneurs, the scheme aims to create a conducive environment for small and medium-sized enterprises to thrive.
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FAQs
Who is eligible for the PMYB & ALS?
Pakistani citizens aged between 21 and 45 years with entrepreneurial potential are eligible. For IT/E-Commerce-related businesses, the minimum age is 18 years.
What is the maximum loan amount one can apply for?
Under the scheme, applicants can apply for loans up to Rs 7.5 million, depending on the tier.
Are there any special provisions for women entrepreneurs?
Yes, a special package is being introduced to facilitate women entrepreneurs in small-scale businesses, making it easier for them to access loans and government support.
How can I apply for the loan?
Applications can be submitted through the official PMYB & ALS website.
When is the application deadline for the internship program?
The specific deadline for the 2025 internship program applications is yet to be announced. Please check the official PMYB & ALS website for updates.
What documents are required for the internship application?
The required documents include:
Valid CNIC,Educational certificates,Domicile certificate,Recent passport-sized photographs,Updated resume/CV.