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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).

Eligibility Criteria

  • All citizens 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
  • For IT/E-Commerce related businesses, at least matriculation or equivalent education will be required
  • Above age limit condition is applicable on individual and sole proprietors. In case of all other forms of business including partnership and companies, only one of the owners, partners or directors must in the age bracket prescribed above
  • Small & 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

Loan Type

  • Term loans/working capital loans including murabaha and leasing/financing of machinery and locally manufactured vehicles for commercial use
  • Only one vehicle per borrower is allowed. A borrower in food franchise and distribution business may avail financing for more than one vehicle
  • Upto 65% of total financing limit can be availed for Civil Works. For agriculture, production and development loans are eligible

Loan Tenor

  • Long Term Loan: Upto 8 years with maximum grace period of 1 year
  • For working capital/production loans and murabaha under T2 and T3, tenor will be upto 5 years. Banks will have the option to lend working capital/production loans wherein only markup will be payable during first 2 years and thereafter both principal along with the markup will be paid in next 3 years making it total repayment period of upto 5 years

Loan Size

ProductFinancing Limit
Tier 2Above Rs. 0.5 Million and upto Rs. 1.5 Million
Tier 3Above Rs. 1.5 Million and upto Rs. 7.5 Million


Tier 2 : 5%

Tier 3 : 7%

Security Arrangement

  • Tier 2 (T2) loans – Clean (secured only by personal guarantee of the borrower)
  • Tier 3 (T3) loans – As per Bank Policy

Vehicle financed under T2 and T3 to serve as collateral

Number of loans per borrower

  • A customer may avail maximum two loans (including one long term and one short term loan) within overall maximum financing limit of Rs 7.5 million
  • In case of agriculture, a customer may avail one production loan and one development loan within overall maximum financing limit of Rs 7.5 million

Sector & Products

All sectors and products. Moreover, in case of agriculture, all crop and non-crop sectors (including crop production, livestock, poultry, fishery, dairy etc.) are also eligible.

Debt Equity Requirement

New Business
  • Tier 2 (T2) loans – 90:10
  • Tier 3 (T3) loans – 80:20
Existing Business

Nil for all Tiers

Turn Around Time

The processing time will not exceed 45 days and will be stated clearly in the application form