Ehsaas PM Loan Scheme for Youth Business & Agriculture

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Ehsaas PM Loan Scheme for Youth Business & Agriculture

In a bid to foster entrepreneurship and drive economic growth, the Government of Pakistan has introduced the Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS). This groundbreaking initiative aims to provide financial assistance to young individuals with entrepreneurial potential, enabling them to establish and expand their businesses in various sectors, including agriculture. In this article, we will delve into the details of this scheme, its scope, eligibility criteria, offering, loan tenure, limit structure, security requirements, gender equality provisions, target market, and application process.

Ehsaas Loan Limit Structure and Pricing

Scope & Eligibility Criteria for Ehsaas PM Loan Scheme

  • The PMYB&ALS welcomes all Pakistani citizens aged 21 to 45, except IT professionals with matriculation education at 18 years.
  • Eligibility is tied to a strong entrepreneurial spirit.
  • Age criterion applies to individuals, sole proprietors, and partners/directors in partnerships/companies.
  • Small and Medium Enterprises (SMEs) owned by youth within age brackets also qualify.
  • Agriculture sector eligibility is based on the State Bank of Pakistan’s 2020 agriculture financing guidelines.

Offerings of PMYB&ALS

The scheme offers both Long Term / Development Loans and Working Capital/Production Loans, catering to the diverse needs of young entrepreneurs. The loan tenor varies based on the type of loan:

  • For Long-Term/Development Loans: Up to 8 years, including a grace period of up to 1 year.
  • For Working Capital/Production Loans: Up to 5 years, with an option for a grace period where only the markup will be payable during the first 2 years.

Ehsaas Loan Limit Structure and Pricing

The scheme operates on a tier-based limit structure, offering different loan caps and pricing:

  • Tier 2 (T2): Loans ranging from > 0.500M to 1.500M with an interest rate of 5.00% p.a. Debt/Equity participation for new applicants is set at 90:10, while existing applicants require no equity participation. Security primarily includes a clean borrower’s/sponsor’s personal guarantee.
  • Tier 3 (T3): Loans ranging from > 1.500M to 7.500M with an interest rate of 7.00% p.a. For new applicants, the debt/equity participation ratio is 80:20, and existing applicants will be subject to the bank’s credit policy for equity participation. Security requirements align with the bank’s credit policy.

Security Requirements

The security arrangements for loans under this scheme are outlined as follows:

  • Tier 2 (T2) Loans: Clean loans with the addition of a personal guarantee from the borrower/sponsors.
  • Tier 3 (T3) Loans: Security requirements are determined by the bank’s individual credit policy.

Promoting Gender Equality

In a significant move towards gender equality and empowerment, the PMYB&ALS ensures that 25% of the loans are reserved for women borrowers, allowing them to actively participate in the business landscape and contribute to the economy.

How to Apply Online for Ehsaas PM Loan Scheme?


In conclusion, the Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS) is a commendable effort by the Government of Pakistan to fuel economic growth, support youth entrepreneurship, and empower individuals to turn their business dreams into reality. With a clear focus on fostering innovation and inclusivity, this scheme holds the potential to reshape the economic landscape of the country while providing young entrepreneurs with the necessary tools to succeed. To explore this opportunity and submit your application, visit the PMYP Online Portal. Seize this chance to drive your entrepreneurial aspirations forward and contribute to Pakistan’s economic progress.

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