In September 2025, the Government of Pakistan relaunched the PM Youth Loan Scheme 2025, a flagship initiative aimed at supporting young entrepreneurs, students, and small business owners. The scheme provides interest-free and low-interest loans to help youth start or expand businesses, create jobs, and contribute to Pakistan’s economy.rn
rnrnOver the years, thousands of young people have benefited from earlier phases of this program. With the new update, the government aims to empower even more youth, especially those facing unemployment and financial struggles. The online application system has also been improved to ensure easy, transparent, and corruption-free access.rn
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Government Announcements – Financial Aid for Youth

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rnThe Prime Minister’s Office confirmed that applications for the scheme are now open. Disbursements will be made through partner banks, including:rn
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  • National Bank of Pakistan (NBP)
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  • Bank of Punjab (BOP)
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  • Habib Bank Limited (HBL)
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  • Allied Bank Limited (ABL)
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  • Other approved financial institutions
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rnFor the fiscal year 2025–26, the government has allocated over Rs. 50 billion. Special priority will be given to youth-led startups, women entrepreneurs, and graduates with innovative business ideas.rn
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Loan Details and Compensation Structure

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The PM Youth Loan Scheme 2025 offers three tiers of financial support:

rnrnrnrnrnrnTierrnLoan Amount (PKR)rnInterest RaternRepayment PeriodrnTarget GrouprnrnrnrnrnTier 1rnUp to 500,000rn0% (Interest-Free)rn3–5 yearsrnStudents, small startups, home-based businessesrnrnrnTier 2rn500,001 – 1,500,000rn5%rn5–7 yearsrnMedium-sized enterprises, shopkeepersrnrnrnTier 3rn1,500,001 – 7,500,000rn7%rnUp to 8 yearsrnEstablished businesses, expansion projectsrnrnrnrnrn

Additional Benefits

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  • Grace period of 6–12 months before repayment starts
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  • 25% quota for women to promote inclusion
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  • No collateral required for Tier 1 loans
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Rescue and Relief Operations – Supporting Struggling Youth

rnThis scheme has been called a rescue plan for unemployed youth after years of economic challenges.rn
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  • Over 200,000 applications were received in the first week of September 2025
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  • Around 100,000 young people are expected to benefit in the first phase
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  • Helplines and online chat support have been launched
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  • Regional centers across provinces are helping applicants
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rnThese measures ensure accessibility, transparency, and fairness in loan distribution.rnrn
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Long-Term Development Goals

rnThe PM Youth Loan Scheme 2025 is more than a financial assistance program. It is part of Pakistan’s economic transformation agenda. The goals include:rn
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  • Promoting a strong entrepreneurship culture
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  • Reducing unemployment through self-employment opportunities
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  • Supporting digital startups, IT services, and e-commerce businesses
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  • Partnering with universities, incubators, and business hubs
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rnThis long-term approach will reduce dependency on short-term aid and build sustainable economic stability.rnrn
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Action Against Exploitation and Corruption

rnTo ensure fairness and prevent misuse, the government has introduced strict monitoring systems:rn
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  • Online verification for all applications
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  • Direct transfer of funds to bank accounts
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  • Third-party audits for transparency
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  • Strict action against fake agents demanding money
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rnApplicants are strongly advised not to pay any unofficial charges, as the application process is completely free.rnrn
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Conclusion

rnThe PM Youth Loan Scheme 2025 is a groundbreaking step towards building a self-reliant and entrepreneurial generation. By providing interest-free and low-interest loans, the government is addressing unemployment while nurturing future innovators and business leaders.rnrnWith its online application system, anti-corruption measures, and special focus on women and disadvantaged groups, the scheme is more inclusive and transparent than ever.rnrnFor Pakistan’s youth, this program is not just about loans—it represents hope, opportunity, and a brighter future.rnrn
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FAQs – PM Youth Loan Scheme 2025

rnHow can I apply for the PM Youth Loan Scheme 2025?rnApply online via the official PM Youth Program portal by submitting CNIC, education details, and business plan.rnrnWho is eligible for the scheme?rnPakistani citizens aged 21–45 years (18 years for IT-related businesses) with a valid CNIC.rnrnHow much loan can I get under the scheme?rnBetween PKR 500,000 and PKR 7.5 million, depending on the loan tier.rnrnDo I need collateral?rnNo collateral is required for Tier 1 loans. Higher tiers may need guarantees.rnrnIs there a quota for women?rnYes, 25% of all loans are reserved for women entrepreneurs.rnrn