Youth Loan Limit Raised to Rs25 Million by PM Shehbaz

Youth loan limits under the Prime Minister's Youth Business and Agriculture Loan Schemes have been raised sharply. Prime Minister Shehbaz Sharif increased the individual loan limit from Rs7.5 million to Rs25 million. The loans will be provided in easy instalments. The decision was announced while he chaired a review meeting on Sunday, November 8, 2026, to review progress and implementation of the schemes.

The prime minister also directed that the minimum eligibility age be lowered from 21 years to 18 years. The change means young people can start businesses and take part in agricultural activities at an early age. An 18-year-old with a business idea will now be able to apply. The move is aimed at bringing more young people into the formal economy at a younger age.

The prime minister directed that 30 percent of the loans be reserved for women. The aim is to help women achieve economic independence. The reservation is meant to encourage their participation in business and agricultural activities. Women who want to start a small business or a farm venture will have a fixed share of the loans set aside for them.

A total of Rs292 billion has been allocated for the financial year 2026-27 to provide loans to young people under the schemes. The target is to provide loans to 266,700 young people during the year. The Small and Medium Enterprises Development Authority, known as SMEDA, will support implementation of the schemes. The scale of the allocation shows how much the government is betting on young entrepreneurs.

The loans are meant to help young people establish businesses, expand existing operations and undertake agricultural activities. A young person can use the loan to start a shop, a small factory or a farm project. The schemes cover both business and agriculture, so they reach young people in cities and in villages. The youth loan programme is one of the government's main tools for tackling youth unemployment.

The youth loan announcement comes at a time when young people make up a large share of Pakistan's population. Many graduates struggle to find jobs, and small businesses are often the only way in. A loan of up to Rs25 million can fund a serious venture, from a workshop to a dairy farm. The government hopes the schemes will turn job seekers into job creators.

Youth Loan: What Changed

The biggest change is the loan limit. It has risen from Rs7.5 million to Rs25 million, more than three times the old limit. A young entrepreneur who needs more capital can now borrow a much larger sum. The loans will be given in easy instalments, which means the repayment burden will be spread over time. The youth loan changes were announced after a review of how the schemes have worked so far.

The age change is also important. Lowering the minimum age from 21 to 18 opens the door to school leavers and college students. An 18-year-old can now apply for a loan to start a business. The government wants young people to think about enterprise early, rather than waiting years to enter the job market. The change could bring a new wave of young applicants into the schemes.

Youth Loan: Women Get 30 Percent

The 30 percent reservation for women is a clear signal. Women face more barriers than men when they try to start a business. They often struggle to get credit from banks. A fixed share of the youth loan funds will give them a fairer chance. The prime minister said the reservation will help women achieve economic independence.

Women's participation in business and agriculture remains low in Pakistan. The reservation is meant to change that. A woman who wants to open a boutique, a food business or a small farm can now apply under a quota set aside for her. The youth loan scheme could become a real path for women who want to earn on their own terms.

Youth Loan: Rs292 Billion and 266,700 Loans

The numbers behind the scheme are large. Rs292 billion has been set aside for the financial year 2026-27. The target is 266,700 young people. That means the average loan would be just over Rs1 million if the target is met in full. In practice, some borrowers will take small loans and others will take the full Rs25 million. The youth loan scheme will be run with support from SMEDA.

SMEDA will support implementation of the schemes. The authority works with small and medium businesses across the country. Its role will be to help young borrowers make their business plans work. The government has not said how the loans will be divided between business and agriculture. That detail may become clear when banks begin processing applications under the new limits.

Youth Loan: What Is Not Announced Yet

Some important details have not been announced yet. The markup rate on loans above Rs7.5 million has not been stated. The date from which the official portal and banks will apply the new limit and age has not been given. What security or guarantee larger loans will need has also not been announced. Applicants should not assume these details until the government states them.

Young people who want to apply should confirm final details on the official PMYP portal, pmybals.pmyp.gov.pk, and with their bank. The portal is the official source for the schemes. Banks will also have their own requirements for documents and guarantees. Anyone who applies should read the official terms carefully before signing anything. The youth loan scheme is a real opportunity, but the fine print matters.

Youth Loan: Frequently Asked Questions

What is the new youth loan limit?

The youth loan limit has been raised from Rs7.5 million to Rs25 million. The loans will be provided in easy instalments.

Who can apply now?

The minimum age has been lowered from 21 years to 18 years. Young people can apply to start businesses or take part in agricultural activities.

How many young people will get a youth loan?

The target is to provide loans to 266,700 young people in the financial year 2026-27, from an allocation of Rs292 billion.

What has not been announced about the youth loan scheme?

The markup rate above Rs7.5 million, the date the new limits apply, and what security larger loans will need have not been announced yet. Check the official PMYP portal and your bank.