The Prime Minister of Pakistan has introduced an exciting opportunity for unemployed individuals aged 18-45. The Prime Minister Youth Loan Scheme offers interest-free loans to individuals who wish to either start a new business or expand an existing one. With a repayment structure that spans three years, the loan is designed to be accessible, with easy monthly installments. The best part? No repayments are required during the first six months, providing a much-needed cushion for business owners during the initial phase
Eligibility Criteria
The loan scheme is available to Pakistani nationals aged 21 to 45 years, though individuals involved in IT or e-commerce businesses can apply from the age of 18. The scheme is open to all, regardless of education level, making it accessible to anyone interested in starting or growing their business. However, government employees cannot apply directly but can help a family member with the application process.
Loan Categories and Amounts
The scheme is divided into three categories based on the loan amount:
- Tier One: Up to PKR5 lakh with an interest-free loan
- Tier Two: PKR5 lakh to PKR15 lakh
- Tier Three: PKR15 lakh to PKR75 lakh
For those interested in applying for the PKR5 lakh loan under Tier One, this is the most popular category, with a straightforward application process.
How to Apply for the Prime Minister Youth Loan Scheme
Applying for a loan under this scheme is simple and can be done online. Here’s how you can apply:
- Visit the Portal: Open your browser and search for “PM Youth Loan” to find the PM Youth Loan Portal. Click on the first result, titled PM Loan Scheme under Digital Youth Hub.
- Select a Bank: After navigating to the loan portal, choose a participating bank. Banks involved in the loan scheme include:
- Bank of Punjab
- National Bank of Pakistan
- Askari Bank
- Habib Bank
- Bank of Khyber
- Fill in Personal Information: Complete the required fields with your personal details, including your CNIC number, name, marital status, and contact information.
- Business Information: Specify whether you’re starting a new business or expanding an existing one. Select the business category (e.g., agriculture, manufacturing, services) and provide the name of your business.
- Loan Details: Choose your loan amount, keeping in mind that the maximum interest-free loan is PKR5 lakh. Any loan exceeding this amount will attract interest.
- Submit the Application: After filling in all the necessary details, submit the application. The bank will process your request, and if approved, they will contact you for further steps.
Loan Repayment Plan
The loan repayment structure is designed to ease the financial burden on new business owners. Here are the key details:
- Loan Amount: Up to PKR5 lakh
- Repayment Period: Typically 3 years (36 months)
- Monthly Installments: For a PKR5 lakh loan, the monthly installment is approximately PKR13,890 for the first 6 months, followed by an increase to PKR14,000-PKR15,000 once the moratorium period ends.
- Moratorium: There is a 6-month grace period during which no repayments are required.
The loan is interest-free if repaid within the 3-year term, making it a very attractive option for new entrepreneurs.
Application Mistakes to Avoid
Many applicants face rejections due to simple errors in the application process. Here are a few common mistakes to avoid:
- Incorrect or Fake Information: Ensure that all information provided is accurate. Submitting false data will lead to immediate rejection.
- Incomplete Documents: While some documents are optional, submitting incomplete forms can delay the application process.
- Failure to Disclose Existing Loans: Make sure to disclose any previous loans you may have taken from other banks, including details of the outstanding amount and monthly installments.
Tracking Your Application
Once your application has been submitted, you can track its progress by visiting the application portal. Look for color-coded status updates:
- Green: Verified and approved by NADRA
- Yellow: Pending verification (you may need to file a complaint)
- Red: Rejected application
Stay in Touch for Updates
After submitting your application, keep your phone on and stay available to receive calls from the bank. Once applications start getting approved, the bank will contact you for further processing. Stay alert for future updates and be proactive in following up.
Conclusion
The Prime Minister Youth Loan Scheme provides a fantastic opportunity for unemployed individuals in Pakistan to start or grow their businesses without the burden of interest. With a simple application process, interest-free loans up to PKR5 lakh, and flexible repayment terms, it’s a scheme worth considering for anyone with entrepreneurial aspirations.
If you’re ready to take the next step and apply for the loan, follow the steps outlined above and make sure to avoid common mistakes to improve your chances of success.