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

pm loan scheme

Government of Pakistan has approved revisions in the key features of PMKJ-YES with a view to make it more purposeful and beneficial for small businesses and agriculture. The new components of interest free microloans and agriculture loans have been added in the scheme. Moreover, the scheme has also been renamed as Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS).

The scheme offers considerable potential for Small & Medium Enterprises and individuals who want to pursue sustainable growth in their respective businesses

Features & Benefits

The scheme has the following benefits:

Loan Type

Term Loan
Working Capital Loan
Leasing/financing of machinery and locally manufactured vehicles for commercial use. Only one vehicle per borrower is allowed. A borrower in food franchise and distribution business may avail financing for more than one vehicle.
For agriculture, production and development loans are eligible.

Eligibility Criteria

1. Age

Age Minimum: 21 Years,
Maximum: 45 Years with entrepreneurial potential are eligible.
For IT/ E-Commerce related businesses, the lower age limit will be 18 Years

2. Business type:

Small and Medium Enterprises (startups and existing businesses) owned by youth as per above mentioned age brackets.
In case of agriculture, farmers’ classification as per SBP’s “Indicative Credit Limits & Eligible Items for Agriculture Financing 2020” will be applicable.

Security Requirements

Tier

Loan Amount

Security

Equity

For New Business

T1 & T2 loans – 90:10
T3 loans – 80: 20

For Existing Businesses:

Nil for all tiers

Required Documents

Loan Application Form (English and Urdu)
Two recent Passport size Photographs.
Valid CNIC/SNIC of obligor Along with CNIC/SNIC NADRA Verisys. Or biometric verification as per AML/KYC/CFT guidelines of SBP by the branch
Feasibility Report
Financials of the business as per Bank’s Credit Policy.
Clean E-CIB of the applicant / obligor with no current overdues / write-off history to be obtained.
Undertakings from the obligor in compliance of relevant SBP PRs.
In case of collateral (immovable property / liquid securities) valuation & other formalities will be administered in accordance to CP & CPM.
Undertaking from the obligor to avail facility from one bank only and not to become a guarantor for loans to other persons under the scheme.
Close relatives of ABL employees are not eligible to apply for financing under this scheme to ABL. An undertaking from Obligor confirming the same is required.
Two References CNICs.