The government of Pakistan always strives to help youth in starting new businesses. It helps to elevate their life and boost the country’s economic stability, eventually leading toward GDP growth.
Pakistan’s government has recently taken an initiative to help bright young minds achieve their business dreams. The Prime Minister of Pakistan has launched the “Youth Business and Agricultural Loans Schemes.” The scheme aims to boost the self-employment ratio and promote a norm of an increased number of jobs so people can earn with dignity in the country. Also there are numerous banks providing home loans in Pakistan.
The Prime Minister’s Youth Loan Scheme is developed for Pakistani Citizens between the ages of 21 to 45 years. The applicants can apply for loans from 5 Lac to 75 Lacs. The loan will be provided on simple terms and conditions so maximum people can benefit.
Additionally, there will be less markup involved. The applicants can apply through 15 SMF and commercial Islamic banks. The age bracket starts from 21, but the bracket for those interested in IT and e-commerce starts from 18.
Starting a new business is everyone’s dream, ad if you have a plan, potential, and determination to start any business idea in Pakistan but fail due to capital. Worry not, and the scheme can be helpful! Realtorspk.com has a complete guide on How to Apply for PM’s Youth Business and Agricultural Loans Schemes.
Features of PM’s Youth Business and Agricultural Loans Scheme:
The youth loan has many features that make it one of the remarkable schemes of the Pakistan government. Including; it is stated that there will be no interest rate on loans up to 0.5 million. The term was mentioned in the launch ceremony of the scheme in Islamabad. It was stated that,
“There will be no interest rate on the loan of up to PKR 0.5 million. A 5% interest will be charged on the loan of over PKR 0.5 million to 1.5 million, a 7% interest rate will be charged on the loan of over PKR 1.5 million to PKR 7.5 million.”
Under the loan scheme, young people from rural areas will be preferred to introduce and boost the use of high-tech equipment in agriculture.
- The scheme allows business personas to establish businesses that are more eco-friendly, profitable, and safer.
- The loan provided under the PMYB&ALS are divided into 3 tiers
- In Tier 1: The range of loan is Rs 0.5 million with 0% markup
- In Tier 2: The range is over Rs 0.5 million up to Rs 1.5 million with only 5% markup
- In Tier 3: The range is over Rs 1.5 million up to Rs 7.5 million with only 7% markup
Eligibility Criteria to apply in Youth Loan Scheme in Pakistan:
One needs to register to apply for PM’s Youth Loan Program. The registration is completely online, and it only takes a few minutes. The criteria for eligibility are as follows:
- The applicants should be residents of Pakistan and fall into the age bracket specified.
- Government employees, people with political affiliations, and bank employees are not eligible for the program.
- It is not a “must” to have an NTN number. However, a person with NTN Number will be given more priority for selection than others.
Required Items to Apply for PM’s Youth Loan Scheme:
Here is a list of documents that are required to complete the application for a loan:
- Scanned photocopies of Computerized National Identity Card (both sides).
- A soft copy of the Passport size picture.
- Scanned copies of educational degrees (such as Matriculation, Bachelor’s Degree, etc.)
- Scanned copy of experience certificates (if there are any)
- Registration certificate scanned copy or licenses scanned copy with a chamber (if there are any)
- If you are already running a business, a letter of recommendation from the chamber or any union or trade body.
- Bank Statements
- Plan of Business
- Consumer ID of electricity bill of your residential address
- Consumer ID of electricity bill of your workplace address (if any)
- The vehicle’s registration number is registered under the applicant’s name.
- Detailed info such as names, CNIC, and mobile numbers of two references (blood relatives are not accepted)
- Brief information about monthly income and expenses of house and business.
Procedure to apply for PM’s Youth Business and Agricultural Loans Scheme
Here is a step-by-step guide on how to apply for the new youth business loan scheme in Pakistan.
- Open the browser and go to the PM’s Youth Business and Agricultural Loan Scheme website.
- Now click on the tab “instructions” and read every point carefully.
- Click on close, add the required data, i.e., CNIC Number and CNIC issue date, and choose the tier.
- Now click on enter to get redirected from the application form.
- The form is further divided into sections. Start your application with section A and fill accordingly. Ensure you have filled all the fields marked with’*’ as these are must-filled sections.
- Once you have completed all sections by filling in the relevant data, add details of the references.
- At the end of the form there is a Declaration form. Recheck your application again and sign the form.
- Ensure you have filled out the data correctly, as it will be checked by NADRA. Once you have applied, no changes can be made. However, you can save the form and fill it easily. Although if you have all documents on hand, it will take only 30 minutes to complete the application.
Let’s wrap it up:
That’s all for now! We hope you can now easily apply for the PM’s Youth Business and Agricultural Loans Scheme and take one step toward a good living and a prosperous future for the country.