The Federal government of Pakistan has relaunched Prime Minister’s Youth Loan Scheme to provide interest-free and subsidized loan schemes to youth. SBP maintained that the scheme offers financing of up to Rs.75 lace each in three slabs, for a maximum period of up to nine years. It further added that one-fourth of the loans will go to women borrowers and the processing time will not exceed 1.5 months.
Prime Minister’s Youth Business & Agriculture Loan Scheme 2023
Under the Prime Minister Youth Loan Scheme, for the first time farmers will be given loans to increase agricultural production. For loan it is necessary to have national identity card and own mobile phone number, can apply on Prime Minister Youth Program website, youth can also apply on mobile app called PMYP.
Government of Pakistan has approved revisions in the key features of PMKJ-YES with a view to make it more purposeful and beneficial for small businesses and agriculture. The new components of interest free microloans and agriculture loans have been added in the scheme. Moreover, the scheme has been renamed as Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS). The key features of PMYB&ALS approved by the Government of Pakistan.
In this regard, the Prime Minister’s National Youth Program will also speed up loans and training for businesses. It should be noted that the National Youth Program has set a target of providing high-tech and conventional training to one lakh youth, under which matric and intermediate students. Technical training, and modern IT courses will be started.
Youths involved in agriculture sector can get loans from the government, under the Prime Minister Youth Loan Scheme, loans will be given to farmers for the first time to increase agricultural production, and the farmers will not need to repay the loan for the first year. The government will give loans of 50 billion rupees across the country, with which the youth will be able to buy beech and fertilizer, the youth will be able to get funds for dairy farming along with the purchase of tractors, fertilizers and seeds. Those whose cattle were washed away in the floods can also take loans, the young generation of remote areas is to be brought into agribusiness, the youth can build a dairy farm and rear cattle with the loan money, the youth can buy tractors or other agricultural equipment from the loan.
All citizens of Pakistan holding CNIC, aged between 21 and 45 years with entrepreneurial potential are eligible. For IT/E-Commerce related businesses, the lower age limit will be 18 years and at least matriculation or equivalent education will be required.
Above age limit condition is applicable on individuals and sole proprietors. In case of all other forms of business including partnerships and companies, only one of the owners, partners or directors must be in the age bracket prescribed above. Small and Medium Enterprises (startups and existing businesses) owned by youth as per above mentioned age brackets are also eligible.
In case of agriculture, farmers’ classification as per SBP’s “Indicative Credit Limits & Eligible Items for Agriculture Financing 2020” will be applicable.
Pakistani national, aged between 21 and 45 years with entrepreneurial potential Matriculation or equivalent education for IT/E-Commerce related businesses; age limit lowered to 18 years. For agriculture loans, State Bank Indicative Credit Limits & Eligible Items for Agriculture Financing 2023 will be applicable.
Size of loan is segregated into 3 tiers, as under:
Tier 1 (T1): Upto Rs 0.5 million
Tier 2 (T2): Above Rs 0.5 million and upto Rs 1.5 million
Tier 3 (T3): Above Rs 1.5 million and upto Rs 7.5 million
The banks/DFIs/MFBs are advised to gear up their systems for successful implementation of this scheme and to avoid any misuse of the scheme. Eligible borrowers may apply for loans on PM Youth Portal immediately after formal launch of the scheme by the Prime Minister’s Office.