Prime Minister Shahbaz Sharif Youth Business Loan and Agriculture Loan Project | A Reference Guide
PM's Youth Business and Agriculture Loans Scheame (PMYB&ALS) in Pakistan
Are you a young entrepreneur looking for a business loan to start or expand your venture? Do you have a passion for agriculture and want to invest in modern farming techniques? If yes, then you might be interested in the Prime Minister's Youth Business and Agriculture Loan Scheme (PMYB&ALS) 2023.
What is PM's Youth Business and Agriculture Loan Scheame?
PM's Youth Business and Agriculture Loans is a government initiative that aims to promote entrepreneurship and self-employment among the youth of Pakistan by providing them with easy access to business loans on simple terms and with low markup rates. The scheme is implemented by the Prime Minister's Youth Programme (PMYP) in collaboration with 15 commercial, Islamic and SME banks across the country.
Who can apply for PM's Youth Business and Agriculture Loans?
The scheme is open to all Pakistani citizens who hold a CNIC, are aged between 21 and 45 years, and have entrepreneurial potential. For IT/E-Commerce related businesses, the lower age limit is 18 years. The applicants can be individuals, sole proprietors, partners or directors of companies. In case of agriculture, the applicants must fall under the farmers' classification as per SBP's guidelines.
What are the loan features of PM's Youth Business and Agriculture Loans?
The scheme offers three tiers of loans depending on the size and nature of the business or agriculture project.
- Tier 1: The loan limit is up to Rs. 0.5 million with 0% markup rate. The maximum loan tenor is 3 years with equal monthly installments. For crop loans, the tenor is up to 1 year with lump sum repayment at maturity.
- Tier 2: The loan limit is above Rs. 0.5 million and up to Rs. 1.5 million with 5% markup rate. The maximum loan tenor is up to 8 years with a grace period of up to one year. For working capital/production loans and murabaha, the tenor is up to 5 years.
- Tier 3: The loan limit is above Rs. 1.5 million and up to Rs. 7.5 million with 7% markup rate. The maximum loan tenor is up to 8 years with a grace period of up to one year. For working capital/production loans and murabaha, the tenor is up to 5 years.
The loans can be used for long term loans, working capital loans, murabaha, leasing or financing of locally manufactured vehicles for commercial use (only one vehicle per borrower). Up to 65% of the total financing limit can be availed for civil works. For agriculture, production and development loans are eligible.
What are the equity and security requirements of PMYB&ALS?
The borrowers are required to contribute some equity in the form of cash or immovable property after the approval of the loan. The equity ratio varies according to the tier and type of the business.
- Tier 1: For new businesses, the debt-equity ratio is 90:10. For existing businesses, there is no equity requirement. The loans are clean and only personal guarantee of the borrower is required.
- Tier 2: For new businesses, the debt-equity ratio is 80:20. For existing businesses, there is no equity requirement. The loans are clean and only personal guarantee of the borrower is required.
- Tier 3: For new and existing businesses, the security requirements are as per the executing banks' own credit policy. The vehicle(s) financed under this tier serve as collateral.
How to apply for PM's Youth Business and Agriculture Loans?
Website
The application process for PM's Youth Business and Agriculture Loans is online only through the official website of PMYP: https://pmyp.gov.pk/bankform/newapplicantform
NTN
The applicants have to fill out an online form with their personal, educational, business and financial details. They also have to upload their CNIC copy, passport size photo, business plan or feasibility report, bank statement (if any), income tax return (if any), NTN certificate (if any), partnership deed or company registration documents (if applicable).
Tracking
The applicants can track the status of their application online through the same website by entering their CNIC number and application ID.
Application Processing
The applications are processed by the banks on a first come first serve basis according to their own criteria and due diligence.
What are the benefits of PM's Youth Business and Agriculture Loans?
PM's Youth Business and Agriculture Loans offers several benefits for the youth who want to pursue their entrepreneurial dreams or enhance their agricultural productivity.
- It provides access to affordable financing with low markup rates and flexible repayment options.
- It encourages innovation and creativity in various sectors such as IT/E-Commerce, manufacturing, services, trade, agriculture etc.
- It creates employment opportunities and income generation for the youth and their families.
- It contributes to the economic growth and development of the country.
Where to get more information and support for PM's Youth Business and Agriculture Loans?
For more information and support, the applicants can visit the following sources:
The official website of PMYP:
https://pmyp.gov.pk/pmyphome/PMYBALS
The official website of SBP:
https://www.sbp.org.pk/Incen-others/PMYBALS.aspT
The official website of SMEDA:
The nearest SMEDA office or helpdesk in their respective province or region.
SMEDA
SMEDA is the Small and Medium Enterprises Development Authority that provides free guidelines, templates, feasibility reports and online support to the applicants of PMYB&ALS.
Conclusion
PM's Youth Business and Agriculture Loans is a great opportunity for the youth of Pakistan to start or grow their own businesses or agriculture projects with the help of easy and cheap loans. The scheme aims to foster a culture of entrepreneurship and self-reliance among the young generation and boost the economic potential of the country. If you are eligible and interested, you can apply online today and turn your dreams into reality.
References:
(1) Prime Minister’s Youth Business & Agriculture Loan Scheme. https://pmyp.gov.pk/pmyphome/PMYBALS.
(2) State Bank of Pakistan. https://www.sbp.org.pk/Incen-others/PMYBALS.asp.
(3) PM’s Youth Business and Agriculture Loan Scheme 2023. https://www.incpak.com/national/pms-youth-business-and-agriculture-loan-scheme-2023/.
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