One of the most popular financing programs of the government that support youth, small businesses, startups, and self-employment the Prime Minister Loan Scheme Pakistan is a great help. It offers low markup loans, easy installments, and hassle-free online application which means one can start or expand the business with it.
What is the Prime Minister Loan Scheme Pakistan?
The Prime Minister Loan Scheme Pakistan, which is also called the Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS), is a governmental program that aims to lessen the unemployment rate and encourage the startup ecosystem in the whole of Pakistan.
Currently, the scheme is awarding loans to the following areas of Pakistani citizens:
- Small businesses
- Startups
- Self-employment
- Agriculture and farming
- Trade and services
The scheme comes with low markup rates, long repayment periods, and easy online application facilities.
Prime Minister Loan Scheme Pakistan Apply Online – Complete Method
One of the main attractions is the online application process that has made it very popular.
How to Apply Online for Prime Minister Loan Scheme Pakistan
- Go to the official loan portal of the government
- Select the Prime Minister Youth Loan Scheme
- Make an account online
- Carefully fill the application form
- Attach the necessary documents
- Submit the application online
- Verification and bank response are to be awaited
Once submitted, the application goes to the banks assigned for approval.
Prime Minister Loan Scheme Eligibility Criteria Pakistan
It is very important that you know the eligibility first before doing the application.
Who Can Apply for Prime Minister Loan Scheme Pakistan?
If you meet the following conditions you are eligible:
- You are a citizen of Pakistan.
- Your age lies in between 21 to 45 years.
- In case of IT & E-commerce business, the minimum age is 18 years.
- You possess a valid CNIC.
- You have either very basic business knowledge or a business plan.
- You are not a bank defaulter.
Both genders can apply. This scheme is meant particularly for women entrepreneurs.
Prime Minister Loan Scheme Loan Amount Details
The scheme is tiered for different loan amounts.
PM Loan Scheme Loan Categories
Tier 1
Loan Amount: Up to PKR 500,000
Markup Rate: 0%
Most appropriate for small startups and self-employment.
Tier 2
Loan Amount: PKR 500,001 to PKR 1,500,000
Markup Rate: 5%
Growing businesses are likeliest to benefit from these loans.
Tier 3
Loan Amount: PKR 1,500,001 to PKR 7,500,000
Markup Rate: 7%
Established firms can best make use of them.
Prime Minister Loan Scheme Markup Rate Pakistan
Markup rate is one of the topics that people are most interested in with respect to this scheme.
PM Loan Scheme Markup Details
- Tier 1 loans come with no markup (i.e. are interest-free).
- Tier 2 loans are subject to a 5% annual markup.
- Tier 3 loans are subject to a 7% annual markup.
These rates are very competitive and much lower than those offered by private banks which makes it difficult for borrowers to repay.
Banks Involved in Prime Minister Loan Scheme Pakistan
Loans are offered through several commercial banks.
- Main Banks Involved
- National Bank of Pakistan (NBP)
- Bank of Punjab (BOP)
- Meezan Bank
- UBL
- HBL
- Bank Alfalah
- Faysal Bank
The applicant can select a bank as per convenience.
Prime Minister Loan Scheme Pros for Youngsters & Micro Enterprises
The scheme has several advantages which is why it is ranked as one of the top government loan schemes in Pakistan.
- Most Important Advantages
- Low or 0% interest rate loans
- Facility for online applications
- Extended repayment duration
- Scheme backed by the government
- Assistance to start-ups and small businesses
- Women entrepreneurs’ support
- No hard collateral for small loans
Prime Minister Loan Scheme for Youth in Pakistan
Youth unemployment is a huge issue in Pakistan. This scheme is a direct answer to that problem.
- Youth-Focused Perks
- Fast loan approval for young business owners
- IT, freelancing, and e-commerce sectors given priority
- Skill-based business aid
- Financial independence possibilities
Prime Minister Loan Scheme for Women Entrepreneurs
Under this scheme, women are granted special consideration.
- Women’s Benefits
- Eased eligibility criteria
- Home-based business support
- Financial help for salons, boutiques, online shops, and services
- Economic empowerment
Documents Required for Prime Minister Loan Scheme Pakistan
First make sure that the following documents are prepared before applying:
- Copy of CNIC
- Passport-sized photos
- Business plan
- Educational or experience certificates (if applicable)
- Details of bank account
The approval may be delayed in case of incomplete documents.
Prime Minister Loan Scheme Approval Process
The process after submission consists of:
- Initial verification
- Scrutiny by the bank
- Interview (if necessary)
- Final approval
- Disbursement of loan
The time for approval varies from 4 to 8 weeks based on the strength of the case.
Common Reasons for Loan Rejection
To avoid mistakes that would lower approval chances, do the opposite:
- Application not completed
- Business plan not strong enough
- Fake or wrong information
- Bad banking history
- Documents missing
FAQs:
1. What is Prime Minister Loan Scheme Pakistan?
This is a government loan initiative that is aimed at the youth, entrepreneurs, and farmers and offers them low markup financing.
2. How to apply online for Prime Minister Loan Scheme?
The official government loan portal is the only way to submit your application by completing the online application form.
3. What is the markup rate on PM Loan Scheme?
Depending on the loan tier, markup can go as low as 0% and as high as 7%.
4. What is the maximum loan amount?
The maximum loan that can be granted to a borrower is PKR 7.5 million.
5. Who is eligible for PM Youth Loan Scheme?
The criteria for eligibility to the loan are that the applicants should be Pakistani nationals between the ages of 21-45 years (18+ years for IT-based startups).
6. Is collateral required?
Heavy collateral is usually not required for small loans.
7. How long is the repayment period?
The repayment period could be as long as 8 years, which includes a grace period.
8. Can women apply for this scheme?
Definitely, women are encouraged to actively participate in this program.
9. Is Prime Minister Loan Scheme interest-free?
Indeed, the loans amounting to PKR 500,000 are disbursed without interest.
