New Prime Minister Youth Loan Scheme 2023 – Prime Minister Youth Program Loan SchemePrime Minister Youth Loan Scheme 2023

Hanzla Luqman November 20, 2023

0 111 8 minutes read

Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS)

In a bid to bolster small businesses and agriculture, the Government of Pakistan has revamped the Prime Minister’s Kamyab Jawan Youth Entrepreneur Scheme (PMKJ-YES). Now known as the Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS), this initiative aims to empower young individuals to realize their entrepreneurial dreams. Let’s delve into the key features and application process.

Key Features of PMYB&ALS

Instructions for Applicants

Dear aspiring entrepreneur, before you embark on your application journey, ensure you have the following documents ready:

Passport Size Picture
CNIC – Front and Back Side
Latest Educational Degree/Certificate
Experience Certificate(s), if applicable
License/Registration with Chamber or Trade Body, if applicable
Recommendation Letter from the respective chamber/trade body or union (mandatory for existing businesses)
Essential information like National Tax Number, Consumer IDs of Electricity bills, Registration number of any vehicle in your name, and details of two non-relative references.

Types of PM Loan Programs

State Bank Prime Minister Youth Loan Program
Bank Alfalah Prime Minister Youth Loan Program
HBL Prime Minister Youth Loan Program
UBL Prime Minister Youth Loan Program
Bank Al Habib Prime Minister Youth Loan Program
Allied Bank Prime Minister Youth Loan Program

State Bank Prime Minister Youth Loan Program: Empowering Tomorrow’s Leaders

1. PM Loan: An Overview

The State Bank of Pakistan introduces a Youth Loan program for individuals aged 21 to 45, offering loans up to Rs. 1 million for business and education. With a subsidized interest rate of 5%, the program caters to all Pakistani citizens within the age bracket.

2. Eligibility Criteria for PM Loan

Age: 21 to 45 years
Employment: Steady income, including self-employment
Citizenship: Pakistani
Assets: Possession of assets in Pakistan
Income: Below the poverty line

3. Types of PM Loan

The program offers three distinct loans tailored to diverse aspirations:

Business Loan (Up to Rs. 5 million, Repayment: 4 years)
Skill Development Loan (Up to Rs. 300,000, Repayment: 2 years)
Youth Housing Loan (Up to Rs. 5 million, Repayment: 10 years)

4. Interest Rates on PM Loan

New interest rate structure effective from July 1, 2019:

Tier 1: Up to Rs. 500,000 (Interest rate: 12.5% per annum)
Tier 2: Rs. 500,001 to Rs. 1,000,000 (Interest rate: 13.5% per annum)
Tier 3: Rs. 1,000,001 to Rs. 5,000,000 (Interest rate: 14.5% per annum)

5. Repayment Period of PM Loan

The government unveils a flexible repayment period of five years, extendable if needed. Fast disbursement within two weeks adds to the program’s allure.

6. Tax Benefits of PM Loan

The State Bank of Pakistan sweetens the deal with tax incentives:

Income Tax Exemption: First two years of business income exempt from tax.
Capital Gains Tax Exemption: Profits from business sale exempt from capital gains tax.
Tax-Deductible Business Expenses: Business-related expenses are tax-deductible.
Tax-Free Loan Repayments: Repayments under the PM Loan Program are tax-free.
Tax Credits for Hiring Youth: Businesses hiring youth (18-35) eligible for tax credits.
Tax Incentives for Youth Training: Businesses providing training to youth (18-35) eligible for tax incentives.

DISCOVER MORE ABOUT TAX: CLICK HERE

Bank Alfalah Prime Minister Youth Loan Program:

Introduction to PM Loans

Pakistan, on its journey to economic prosperity, introduces the Prime Minister Youth Loan Program in 2013. Geared towards youth aged 18-35, this initiative offers loans up to Rs. 2 million at a subsidized interest rate of 4% per annum.

How PM Loans Can Benefit You

Low-Interest Rates: Enjoy the advantage of low-interest rates.
Extended Repayment Period: Repay over five years, giving your business time to flourish.
No Collateral Requirements: Accessibility to all, irrespective of assets.
Additional Benefits: Training, mentorship, and a dedicated support team enhance the program’s appeal.

Types of PM Loans Offered

Business Loan (Up to Rs. 2 million, Interest rate: 9%, Repayment: 5 years)
Agriculture Loan (Up to Rs. 2 million, Interest rate: 9%, Repayment: 5 years)
IT & Technical Training Loan (Up to Rs. 300,000, Interest rate: 9%, Repayment: 3 years)

How to Apply for a PM Loan

The application process is straightforward:

Eligibility Criteria: Pakistani citizen, aged 18-35, with a valid CNIC and a minimum monthly income of PKR 10,000.
Bank Account: Must have a bank account in any Pakistani bank.
Guarantor: A guarantor meeting government-set criteria is necessary.
Application Submission: Complete the form, available at State Bank branches or online, and submit it with required documents.
Loan Disbursement: Application processed within 15 days, with disbursement within 30 days.

ALSO READ: Fully Funded Scholarships in Qatar

Tips for Successfully Applying for a PM Loan

Embark on your entrepreneurial journey with these tips:

Know the Eligibility Criteria: Age, citizenship, employment, and a well-crafted business plan are crucial.
Understand the Loan Process: Navigate through the pre-screening and post-screening phases.
Prepare Your Documents: Ensure all necessary documents are ready.
Craft a Strong Business Plan: A comprehensive plan is the key to success.
Stay in Touch: Regular communication with your loan officer is vital. Click Here

HBL Prime Minister Youth Loan Program: Turning Dreams into Reality

HBL PM Youth Loan Program: Fueling the Dreams of Young Entrepreneurs

Are you a young entrepreneur striving to finance your dream project? Look no further than the HBL Prime Minister Youth Loan Program! Launched in 2013, this initiative offers access to low-interest loans, paving the way for success.

What is the HBL Prime Minister Youth Loan Program?

Initiative: Launched in 2013 by Prime Minister Nawaz Sharif.
Loan Amount: Up to Rs. 10 million at subsidized interest rates.
Loan Purpose: Business start-up costs, working capital, and equipment purchases.
Success Stories: Over Rs. 60 billion disbursed to 200,000+ entrepreneurs, contributing to increased sales and profitability.

Bank Al Habib Prime Minister Youth Loan Program:

1. What is a PM Loan?

The Prime Minister Youth Loan Program, initiated by the Government of Pakistan in 2013, offers financial assistance to young entrepreneurs. Open to citizens aged 18-45, the program provides loans ranging from Rs. 100,000 to Rs. 5 million at a 4% interest rate per annum. The goal is to encourage entrepreneurship, creating over 200,000 jobs.

ALSO READ: Fully Funded Scholarships in Qatar

2. Who is Eligible for a PM Loan?

Eligibility: Pakistani citizens aged 21-45, seeking to start a business.
Criteria: No other government financial assistance, minimum monthly income of Rs. 15,000, and no outstanding loans from other financial institutions.
Preference: Given to those with a college or university degree and business experience.

3. How to Apply for a PM Loan

A simple four-step process:

Application Form: Fill out the form, available online or at any Bank Al Habib branch.
Documentation: Submit necessary documents, including CNIC, utility bill, bank statements, and salary slip.
Application Processing: Wait for the bank to process the application within 15 days.
Loan Agreement: Sign the agreement and commence monthly repayments.

4. What are the Benefits of a PM Loan?

Financial Assistance: Loans up to PKR 500,000 at a 4% interest rate.
Flexible Repayment: Up to 5 years with no collateral requirement.
Simplified Application: Simple and accessible process.

5. What are the Interest Rates for a PM Loan?

Interest-free loans for eligible individuals aged 21-45, disbursing over Rs. 34 billion. Loan categories include General, Business, and Agri, each with a repayment period of five years.

6. Repayment Terms for a PM Loan?

Choose from six repayment terms tailored to your financial situation, ensuring a seamless journey towards your entrepreneurial goals.CLICK HERE

Understanding Loan Repayment Plans

Successfully navigating the repayment phase is crucial for anyone benefiting from the Prime Minister Youth Loan Programs. Let’s delve into various repayment plans and strategies for avoiding defaults.

1. Standard Repayment Plan

The standard plan, default for most loans, grants borrowers a decade for full repayment.

2. Extended Repayment Plan

For those requiring more time, the extended plan allows a generous 20-year repayment period.

3. Graduated Repayment Plan

Ideal for those expecting income growth, this plan starts with lower payments, gradually increasing over time.

4. Income-Based Repayment Plan

Catering to low or variable incomes, this plan caps monthly payments at a percentage of the borrower’s income.

5. Pay As You Earn Repayment Plan

Similar to the income-based plan, payments are income-dependent, and any remaining balance is forgiven after 20 or 25 years.

6. Public Service Loan Forgiveness

Designed for those in public service, loans are forgiven after a decade of consistent payments.

7 Tips to Avoid Default on PM Loans

If struggling to repay, consider these tips:

Understand Loan Terms: Comprehend interest rates, monthly payments, and loan duration before accepting.
Create a Budget: Develop a comprehensive budget, encompassing loan payments and other essential expenses.
Prioritize Loan Payment: Make loan payments a top priority in your monthly financial planning.
Stay Current: Aim to make payments early to avoid late fees and maintain a good standing.
Communicate with Lender: If difficulties arise, communicate promptly with your lender to explore alternative payment plans.
Loan Consolidation: Consider consolidating multiple loans for simplified payments.
Seek Professional Help: Engage a financial advisor if facing challenges, aiding in budgeting and debt management.CLICK HERE

Allied Bank Prime Minister Youth Loan Program

Unlocking Entrepreneurial Dreams with Allied Bank

Are you a young entrepreneur seeking financial backing? The Allied Bank Prime Minister Youth Loan Program is your gateway to affordable loans and valuable training opportunities. Discover why this innovative program is the right choice for turning your business dreams into reality.

Overview of the Program

Launched in 2013, this Pakistani government initiative offers interest-free loans to individuals aged 18-35. The funds can be utilized for business start-ups, expansions, or working capital. By 2016, over 50,000 young Pakistanis had benefited from this program.CLICK HERE

Eligibility Criteria

To qualify, applicants must:

Be between 18 and 35 years old
Be Pakistani citizens
Hold a valid CNIC
Not be a defaulter of any bank or financial institution
Not have availed any other youth loan scheme previously

Required Documents

Applicants need to submit:

Duly filled application form
Two recent passport size photographs
Copy of CNIC
Copy of the latest utility bill

ALSO READ: Fully Funded Scholarships in Qatar

UBL Prime Minister Youth Loan Program

Fueling Dreams with UBL’s Initiative

Are you a young entrepreneur or a student with big aspirations? The UBL Prime Minister Youth Loan Program is here to provide financial support and help you transform your dreams into reality. Explore the details of this program and understand how it can benefit ambitious youths like yourself.

Program Overview

Launched in 2013 by Prime Minister Nawaz Sharif, this government initiative supports young Pakistanis aged 18-45 in starting or expanding businesses. Over 2 million individuals have received loans totaling over Rs180 billion, contributing to increased employment and economic activity.

Eligibility Criteria

Open to Pakistanis aged 21-45, the program requires applicants to be employed or self-employed with proof of income.

How to Apply

Visit a United Bank Limited branch with your CNIC, photographs, and bank account number. Obtain the application form from the bank, complete it, and submit it with the required documents. The loan is processed within 7-10 days. CLICK HERE