Full Guide: PM Youth Loan Scheme Online Apply 2025, Eligibility Check & Benefits
In Pakistan, thousands of young people dream of starting their own businesses or expanding existing ones but often face financial hurdles. To solve this challenge, the government has continued the Prime Minister Youth Loan Scheme 2025, making it easier for motivated youth to access affordable financing. This program is designed to provide loans on subsidized terms, helping young men and women become self-employed, start small enterprises, or invest in innovative projects.
In this guide, I’ll explain everything step by step – from eligibility criteria and application process to loan tiers, documents required, repayment details, and latest updates for 2025. By the end, you’ll have a complete roadmap to successfully apply online and secure your loan.
What is the PM Youth Loan Scheme?
The PM Youth Loan Scheme (PMYLS) is a government-backed financing program, introduced to support Pakistan’s youth in entrepreneurship, skill development, and job creation. The scheme is available through multiple commercial and Islamic banks, offering loans with subsidized markup rates.
Objectives of the Scheme
- Encourage youth entrepreneurship and self-employment
- Provide financial assistance for small businesses and startups
- Support women and differently-abled persons in economic activities
- Create job opportunities in both rural and urban areas
How to Apply Online for PM Youth Loan Scheme 2025
- Visit the official portal: https://pmyp.gov.pk
- Click on “Apply Online” for the Youth Business Loan Scheme
- Enter your CNIC number and fill in personal details
- Upload required documents including business plan
- Choose your preferred bank from the list of participating banks
- Submit your application and note down the tracking number
- Once processed, you will receive SMS/email confirmation from the bank
Sample Business Plan Template – PM Youth Loan Scheme (Tier 1)
1. Business Information
- Business Name: __________________________
- Type of Business: (e.g., Grocery Shop, IT Freelancing, Tailoring Unit, Dairy Farming, Mobile Repair Shop, etc.)
- Business Location: __________________________
- Proposed Start Date: __________________________
2. Applicant Information
- Name: __________________________
- CNIC Number: __________________________
- Age: __________________________
- Education/Skills: __________________________ (e.g., Diploma in IT, Tailoring Course, Livestock Farming Experience)
- Mobile Number: __________________________
3. Business Idea Summary
Describe your idea in 3–5 sentences:
Example: “I want to open a small tailoring shop in my neighborhood. Many women in this area need affordable stitching services. With the loan, I will purchase sewing machines, cloth cutting tools, and rent a small shop. My plan is to earn stable monthly income by providing quality tailoring services.”
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4. Products or Services
- Main Product/Service: __________________________
- Additional Services: __________________________
Example: For a grocery shop → main: daily household items, additional: home delivery.
5. Target Market
- Customers: Who will buy your product/service? (e.g., local households, students, online clients, farmers)
- Location: (e.g., village, town, city area)
- Why customers will choose you: Affordable prices, quality service, convenience.
6. Startup Cost Estimate
| Item/Expense | Estimated Cost (PKR) |
| Shop Rent/Advance | _________ |
| Equipment/Tools | _________ |
| Raw Material/Stock | _________ |
| Furniture/Setup | _________ |
| Marketing/Signboard | _________ |
| Other Expenses | _________ |
| Total | Up to 1,000,000 |
7. Monthly Income & Expense Projection
| Description | Monthly Income (PKR) | Monthly Expense (PKR) |
| Sales/Service Revenue | _________ | |
| Raw Material/Stock | _________ | |
| Rent | _________ | |
| Utilities | _________ | |
| Loan Installment | _________ | |
| Net Profit | (Income – Expenses) |
8. Employment Generation
- Number of Jobs Created: ____ (Self + employees, if any)
Example: 2 (Owner + 1 helper).
9. Loan Requirement
- Loan Amount Requested: PKR __________ (between 100,000 and 1,000,000)
- Use of Loan:
- Purchase of equipment
- Shop rent/setup
- Raw material/stock
- Marketing expenses
10. Repayment Plan
Explain briefly how you will repay:
Example: “I will repay from the monthly profit of my tailoring shop, which is expected to be Rs. 40,000 per month after expenses. My installments will be manageable under the PM Youth Loan Scheme.”
Eligibility Criteria for PM Youth Loan Scheme 2025
To qualify for the scheme, applicants must meet the following conditions:
- Be a Pakistani citizen with a valid CNIC
- Age between 21 to 45 years (for IT/e-commerce, minimum age is 18 years)
- Have a viable business idea or plan
- Women, differently-abled individuals, and residents of rural areas are strongly encouraged to apply
Loan Tiers and Financing Details
The scheme is structured into three financing tiers:
| Tier | Loan Amount | Customer Markup Rate | Repayment Tenure |
| T1 | PKR 100,000 – 1 million | 0% (interest-free) | Up to 3 years |
| T2 | Above 1 million – 5 million | 5% | Up to 5 years |
| T3 | Above 5 million – 7.5 million | 7% | Up to 7 years |
Note: The government shares the burden of markup to make these loans accessible to more applicants.
Documents Required for Online Application
Applicants need to prepare the following before applying:
- Valid CNIC
- Passport-size photograph
- Educational certificate (if applicable)
- Business plan or proposal
- Bank account details
- Utility bill (for address verification)
- Mobile number registered on CNIC
Checklist Before Submitting Application
| Requirement | Status |
| Valid CNIC | ✔ Ready |
| Mobile SIM in your name | ✔ Ready |
| Business plan | ✔ Completed |
| Bank account | ✔ Active |
| Utility bill | ✔ Attached |
Participating Banks in PM Youth Loan Scheme 2025
- National Bank of Pakistan (NBP)
- Bank of Punjab (BOP)
- Habib Bank Limited (HBL)
- Meezan Bank Limited
- United Bank Limited (UBL)
- Allied Bank Limited (ABL)
- Zarai Taraqiati Bank (ZTBL)
- First Women Bank Limited (FWBL)
Applicants can select the bank of their choice during online application.
How Freelancers Can Benefit from PM Youth Loan Scheme
In recent years, freelancing has become one of the fastest-growing income sources for Pakistani youth. Platforms like Fiverr, Upwork, and local IT services are helping thousands of young people earn in dollars. The PM Youth Loan Scheme is a golden opportunity for freelancers who want to scale their work.
With this loan, they can buy laptops, build small home offices, or invest in stable internet connections and software. Instead of working with limited resources, freelancers can professionalize their services and increase their earning capacity. For many, this loan could be the step from part-time work to a sustainable digital career.
Why Business Planning is Key for Successful Applications
Even though the loan is government-backed, banks will still ask applicants for a clear business plan. Many young people make the mistake of applying without showing how they will use the funds. A simple plan that explains the business idea, expected income, and repayment method can make approval much easier.
For example, a dairy farmer should list how many animals he will buy and the expected monthly milk sales. Similarly, a freelancer should outline expected earnings after investing in better tools. A strong business plan shows seriousness and reduces the bank’s risk, which is why it’s the most important step for a successful application.
Benefits of the PM Youth Loan Scheme
- Zero to low markup loans make financing accessible for everyone
- Encourages job creation instead of job seeking
- Promotes women entrepreneurship with special quotas
- Offers easy repayment plans up to 7 years
- Supports small-scale farmers, traders, and IT freelancers
FAQs About PM Youth Loan Scheme 2025
Q1: What is the maximum loan amount under PMYLS 2025?
Up to PKR 7.5 million, depending on the loan tier.
Q2: Can women apply for this scheme?
Yes, women are strongly encouraged, with dedicated quotas available.
Q3: Is collateral required for Tier 1 loans?
No, Tier 1 loans are interest-free and do not require collateral.
Q4: Can freelancers and IT professionals apply?
Yes, freelancers and IT entrepreneurs above 18 years can apply.
Q5: How long does it take for approval?
It may take a few weeks depending on verification and bank processing.
Conclusion
The PM Youth Loan Scheme 2025 is a golden chance for young Pakistanis to turn their business ideas into reality. With easy online application, interest-free options, and long repayment periods, it’s the best opportunity to step into entrepreneurship.
