The PM Youth Business Loan was launched in 2025. One of the main reasons for its launch is that there is no shortage of talent in Pakistan. The youth are rich in talent, but the biggest obstacle in their path is the lack of capital. Accepting this challenge, the Government of Pakistan launched the PM Youth Business Loan 2025.

Now in 2025, the scheme has gained further advantages in that the application process has been simplified, the scheme has been converted into more flexible methods and the review conditions have been increased. The aim of this scheme and policies is to encourage the youth to start small businesses and agricultural products. Whether you want to expand your workshop and achieve further growth or whether you want to start a small business or a diary farm or a shop, the scheme provides you with financial assistance and support to turn your dreams into reality.

What is PM Youth Business Loan 2025?

💼 This scheme is designed to provide loans to people aged 21 to 45 years without any collateral and at low interest rates to expand existing businesses. 🏢 PM Youth Business Loan 2025 is government-backed, it will create a passion for doing business among the youth and help them. 🔄 In Phase II 2025, the scheme has been made more beneficial for the general public and the youth by making further changes and making the scheme accessible to every individual.

What’s New in PM Youth Business Loan 2025?

The changes made or facilities created in Phase 2 are described below:

📊 Feature Updated (2025 Phase 2)

1️⃣ The loan levels in this scheme have been kept as three as there were three levels earlier, but the conditions and transparency have been improved.

💸 A mark-up rate was applied for all the levels, but now the mark-up rates have been reduced from 0% to 5% based on the level.

🌐 A modern portal has been introduced for this scheme. The application process has been made completely online through PM Youth Voter, which will make it very easy for young people.

⚡ Earlier, it took a lot of time to disburse the loan, but with the turnaround time, fast loan approval, the loan will be disbursed within 30 working days.

👩‍💼 Preference has been given to women, IT-related business start-ups, and agricultural entrepreneurs under this scheme.

⏳ In this scheme, you will get a discount — the period provided is a grace period of one year.

📆 While the loan period in the scheme has been kept up to eight years.

🔓 And if we talk about collateral tier, then one collateral tier is free.

📄 Repayment Terms In PM Youth Business Loan 2025

✅ The terms that have been updated include a grace period of one year. During this grace period, you will not have to make any payments.

✅ The time period set for repaying the loan is up to 8 years.

✅ Depending on what kind of business you are doing — whether it is a startup or you want to expand your existing business — the monthly installment will be fixed or quarterly.

✅ If the payment is made after the lapse of time, you will be able to repay without penalty.

📋 Eligibility Criteria ( 2025 Update)

📌 The method of applying for PM Youth Business Loan 2025 Phase II and the criteria that you have to meet may vary, which are described below:

1️⃣ To apply for PM Youth Business Loan 2025 Phase II and to send the application, you must be 21 years of age or more and less than 45 years of age, but 18 years is enough for IT/e-commerce business.

🆔 You must have a valid ID card.

🏠 You must be a resident of Pakistan to benefit from the program.

📈 To join this scheme, there should be a viable plan that will make you profitable in business — a complete roadmap.

👩‍💼 25 percent quota has been allocated in this scheme for women who want to start their own business.

🌾 If you belong to the agricultural sector and want to expand your business in agriculture, then you must be registered with the agriculture department.

Loan Tiers & Amounts Of PM Youth Business Loan 2025

💰 Loan Tiers & Amounts

📌 To facilitate the application process, the government has established three distinct loan tiers under the program:

🟩 Tier 1

Rs 100,000 to Rs 0.5 million is Tier 1.

In Tier 1, a loan of Rs 100,000 will be available. The mark-up rate on this will be zero percent, meaning no collateral will be required.

This loan is reserved for small business owners such as online sales freelancers and small shop owners.

🟨 Tier 2

Tier 2: Over 0.5 to 1.5 million rupees

A loan between Rs 100,000 and Rs 1.5 million can be obtained in the second tier.

You will be required to pay a five percent interest rate in this case.

Collateral is required for this loan amount.

This is for starting a medium-sized business or expanding your existing business.

🟥 Tier 3

Above Rs 1.5 million to Rs 7.5 million is Tier 3.

The loan amount will range from Rs 1.5 lakh to Rs 7.5 lakh in the third phase.

Five percent is the interest rate that will be applied to it, also known as the markup rate.

To get this loan, you need a strong guarantee. Land or property etc. will be required as collateral.

This loan has been allocated for purchasing agricultural machinery or for further expansion of a large business and for expanding production units.

Also Read : PM Youth Business And Agriculture Loan Scheme 2025

📑 Required Documents For PM Youth Business Loan 2025

✅ Your National Identity Card should be computerized

✅ You will need passport-sized photos

✅ If you are educated, then an educational certificate will also be required

✅ If you want to start your business, then a business plan with a complete roadmap is required

✅ If already doing business, provide NTN number or NTN certificate (if available)

✅ Bank account details must be submitted

✅ For large loans (Tier 2 & 3), collateral documents (shop or land) are required

📝 How to Apply For PM Youth Business Loan 2025 – Step-by-Step Guide

After reading all the information, if you want to apply, then you can apply by following these steps:

✅ First, go to the official portal and register all your information there

Go To : PMYB&ALS (Prime Minister's Youth Business and Agriculture Loan Scheme)

✅ Upload the loan amount, business details, and documents in the information

✅ And if you belong to the special guarantors like women, IT, or agriculture, then register it too

✅ After providing all the information and filling the form, you will get a tracking number

✅ The bank will review the form sent by you and may call you for an interview and may also verify the information you have provided

✅ After doing all the verification, if your loan is approved, the loan amount is sent to your bank account within 30 days

Also Read :Wheat Support Program 2025 – Relief for Farmers or Another Missed Opportunity? Full Benefits, Issues & Govt Strategy Explained

Conclusion

All the changes that have been made in the PM Youth Business Loan Scheme 2025 Phase Tool have been provided to you. Under this scheme, many youth and many entrepreneurs will benefit. If a youth wants to start his own business, he will get employment, and if a business is already running and wants to expand it, his business will grow and employment will also increase. This scheme encourages every entrepreneur living in Pakistan and instills a passion and dedication to doing business in them. Whether you are from a small city or a large area, you can participate in this scheme and benefit from it, make your business shine and brighten your future. If you want to apply, get ready and apply quickly.