Prime Minister’s Youth Business Loans

Purpose of Scheme:

To provide small business loans in shape of Term loan focus on (but will not restricted to) unemployed youth, especially educated youth looking for establishing or extending business enterprise.

Eligibility Criteria:

Both women and men aged between 21 to 45 year holding valid CNIC, having ability to start their own business or intend to expand the existing business. Applicant should have some experience of relevant field or holds a business related diploma/certificate pertaining trade of proposed business setup.

Pricing/Service Charges:

6% p.a.


Maximum 8 years. The tenor will depend upon the nature of business, pattern of income and repayment capacity.

Finance Limit:

Maximum up-to: Rs. 2,000,000/-

Processing Time:

Processing time will not exceed 15 working days after submission of complete basic documents by the applicant.

Borrowers Capital:

10% of the loan amount

Repayment of Loan:

Service Charges on monthly basis with grace period of 12 months for principal payment


1- Personal guarantee of high net/credit worthy individuals :

  • Any person including blood relatives / family member having net worth of 1.5 times the loan, can give the guarantee. No post dated cheques or wealth statement (by the guarantor) is required. Net worth also includes person’s property; value as assessed by the Bank’s approved evaluator.

  • It is not mandatory for guarantor to reside in the same city of the applicant.

  • No net worth is required if guarantor is a Government Employee

  • There is no age limit for guarantors who are not Government Employees

  • Any grade-15 or above Govt. officer with 8 or more years remaining services can be a guarantor. Only salary slip is required.

  • More than one person with cumulative net worth of more than 1.5 times the loan can give guarantees on single loan application.

  • Single person, having net worth higher than 1.5 times of cumulative loan amounts, can guarantee more than one applicants.

  • Anyone with net worth more than 1.5 times the loan can give his own guarantee.

  • Must have clean credit history

  • Not an employee of FWBL

  • One guarantor one loan

  • Cannot be an applicant

2- If a person cannot arrange an eligible guarantor, then alternatively he can provide mortgage of immoveable property in lieu of guarantee.

  • Property must be in Applicants name and must be free from any charge or lien.

  • It shall be appraised by PBA approved valuators and the cost of this valuation shall be borne by the applicant.

  • The appraised value of property must be equivalent to at least 1.5 times of the total funds required.

  • FWBL Branch to create Equitable Mortgage in favor of FWBL with 1% token Registration.

  • Valuation and mortgage charges to be borne by the applicant.

  • The valuation of the property will be done after sanction of the loan at the time of completion of legal documentation. PBA approved valuators shall be used for this purpose.

  • Loan disbursement will be subject to the valuation of the property.

3- Hypothecation of Business Stocks.

Sector and Products:

All sectors. Borrowers will be encouraged to obtain standardized schemes/projects/undertakings from SMEDA or any other body but this will not be mandatory for the borrower

Required Basic Documents:
• PMYBL prescribed Application Form
• Borrowers Basic Fact Sheet /Guarantors information
• Feasibility Report
• Proof of sources of income and credit worthiness of customer & Guarantor such as Bank statement, salary slip etc
• Copies of CNIC & any other related document, as may be required by Bank
How to Apply :
Through any nearest branch from Bank’s net work of branches


1. What is the amount of loan we can apply?
The amount of loan a potential borrower can avail will depend on the Business Plan and credit worthiness of the customer. Maximum amount of limit is Rs.2M

2. What is the Rate of Mark-up for the scheme?
Current rate of mark-up is 6% flat, subject to change by SBP.

3. For what tenor of loan we can apply?
Applications are acceptable up to maximum tenor of 8 years inclusive of One Year grace period.

For Prime Minister’s Youth Business Loans Click Here

Download Application Form

For pre feasibilities studies please visit smeda link

For Second balloting results Click here


Site last updated July 17, 2019 @ 10:22 am