The Young Business and Agricultural Loan Schemes were introduced by Prime Minister Shehbaz Sharif recently, in Islamabad with the intention of encouraging youth entrepreneurship and self-employment.
The lending facility under the programmes is available to individuals between the ages of 21 and 45. The minimum age requirement for IT and e-commerce businesses is 18 years old. For online application visit https://pmyp.gov.pk/
The loan “schemes are aimed at making the youth self-reliant,” added Shehbaz Sharif.
The detailed instructions for applying for loans are as follows:
The inclusion of agricultural loans will assist rural youth in bringing innovation to farming, including mechanized farming, the development of agricultural value chains, and the solarization of farming equipment to create more sustainable energy resource management in a country like Pakistan with a challenging climate.
Small company loans for microfinance would encourage the norm of job creation rather than job seeking among the country’s youth clan.
On the loan program, you can also use Islamic banking services.
There is a 25% quota set out for women.
The prime minister further stated that under the programs, loans up to Rs.1.5 million can be obtained with the borrower’s personal guarantee.
“The loan up to Rs.0.5 million would not have an interest rate. On loans of more than Rs.0.5 million to Rs.1.5 million, interest will be charged at a rate of 5%, he said, while loans of more than Rs.1.5 million to Rs.7.5 million will be subject to a 7% interest rate.”
Jameel Ahmad, the governor of the State Bank of Pakistan (SBP), remarked that “special instructions had been issued to the banks for giving loans to the youth” during his speech at the event.
The government and the central bank’s primary objective is to provide loans to the farm industry, he continued. The governor of SBP stated that farmers in flood-affected areas would receive the necessary help. “The maximum amount of loans for agriculture has been raised by 44%.”
He asked all institutions to participate actively in the youth loan program.