In July 2025, the government of Pakistan officially announced the continuation of its Prime Minister Youth Loan Scheme with a major update—offering interest-free loans of up to Rs. 500,000. This initiative, part of the broader Kamyab Jawan Program, aims to empower the unemployed youth, fresh graduates, and aspiring entrepreneurs by providing them access to financial support without the burden of markup. In this guide, we will explain who is eligible, how to apply, and what documents you need to get this bila sood (interest-free) loan successfully.
What is the PM Youth Loan Scheme 2025?
The PM Youth Loan Scheme 2025 is a government-backed initiative under which eligible individuals can receive business loans without paying any interest. The program falls under Tier 1 of the Kamyab Jawan Youth Entrepreneurship Scheme (PMKJ-YES), where the loan amount ranges from Rs. 100,000 to Rs. 500,000 with 0% markup.
This initiative promotes self-employment, business development, and youth empowerment, particularly in urban and rural areas where access to traditional banking is limited.
Read Also: Good News Punjab Asaan Karobar Card New Registration Announced 2025 Apply Now
Key Features of the Loan Scheme
- Loan Amount: Rs. 100,000 to Rs. 500,000
- Markup Rate: 0% (Interest-Free)
- Repayment Period: Up to 3 years in monthly installments
- Collateral: Not required for Tier 1 loans
- Eligibility: Pakistani citizens aged 21 to 45 years
- Processing Time: Usually 30 to 45 days
- Down Payment: 10% required for new businesses (not applicable to existing businesses)
Who is Eligible?
To qualify for the PM interest-free loan of Rs. 5 lakh, the applicant must meet the following criteria:
- Must be a Pakistani national with a valid CNIC
- Age between 21 and 45 years (minimum age can be 18 for IT and e-commerce related businesses)
- Having a viable business idea or plan
- Must not be a defaulter of any bank (clean e-CIB)
- Educational qualification is preferred but not mandatory
- Women and people from remote areas are highly encouraged to apply
Documents Required
Make sure to have the following documents ready before you begin the application process:
- Valid CNIC (front and back scanned)
- Passport-size photograph
- Business Plan (basic but realistic)
- Educational Certificates (if any)
- NTN Certificate (if applicable)
Note: The documents may vary slightly depending on the bank you choose.
How to Apply for the PM Loan Scheme?
The government has made it easier than ever to apply for the interest-free loan online through the official Kamyab Jawan portal. Follow the step-by-step process below:
Step 1: Visit the Official Portal
Go to www.kamyabjawan.gov.pk and click on the “Apply Now” or “New Applicant Form” button.
Step 2: Fill Out the Application Form
Provide accurate details, including your personal information, educational background, business idea, and desired loan amount. Select Tier 1 (Rs. 100,000–500,000) to qualify for the interest-free category.
Step 3: Select a Partner Bank
Choose your preferred bank from the list of participating institutions like HBL, Meezan Bank, Bank Alfalah, UBL, or JS Bank.
Step 4: Upload Required Documents
Attach the scanned copies of your CNIC, photo, business plan, and any supporting documents.
Step 5: Submit and Wait for Verification
Once submitted, your application goes into review. The bank will contact you if further clarification, verification, or an interview is needed.
What Happens After Submission?
After your application is submitted:
- The bank conducts a screening process based on your business plan, CIB report, and documents.
- You may be called for an interview or phone verification.
- If approved, the loan amount will be disbursed to your bank account or issued via a banker’s check.
Partner Banks for the Scheme
The following banks are currently participating in the Prime Minister’s Youth Loan Scheme:
- Habib Bank Limited (HBL)
- Meezan Bank
- Bank Alfalah
- United Bank Limited (UBL)
- JS Bank
- National Bank of Pakistan (NBP)
Each bank may have slight procedural differences, but the main criteria and benefits remain the same.
Benefits of the Scheme
- No markup or interest, easing financial pressure on youth
- Quick access to funds for startup or existing business growth
- Equal opportunities for men and women
Final Words
The PM Interest-Free Loan Scheme 2025 is a golden opportunity for Pakistani youth to turn their business dreams into reality. With zero markup, minimal documentation, and an easy online application process, it stands as one of the most beneficial financial assistance programs in the country. If you are struggling to start your business due to a lack of funds, don’t miss out on this scheme. Apply today and take the first step toward financial independence and entrepreneurship.
For more information, click here.