Youth Business and Agricultural Loan Schemes announced by PMLN led government under Prime Minister Shehbaz Sharif

Youth Business and Agricultural Loan Schemes the brainchild of PMLN led government in 2013 relaunched by PMLN led government under Prime Minister Shehbaz Sharif with further improvements.

The government aims to promote entrepreneurship and self-employment through this scheme amongst the youth.

Pakistani nationals in the age range of 21 to 45 years are eligible for the loan facility of up to 7.5 million rupees under these schemes. A special lower age of 18 years criteria specific to IT and E-commerce businesses is considered among these loans.

Govt.’s micro-financing through small business loans will promote and enable job creation rather than job seeking among the majority of youth.

The agricultural loans will help the rural youth in bringing innovation to farming which can include mechanized farming, the creation of agricultural value chains and the Solarization of farming equipment to create more sustainable energy resource management in Pakistan which is an agricultural based but climate-challenged country.

Under this scheme loans of up to 0.5 million rupees will be interest free while 5 %  percent interest will be charged on the loan of over 0.5 million to 1.5 million rupees and 7 % interest rate will be charged on the loan of over 1.5 million rupees to 7.5 Million rupees while Islamic banking facilities (interest free banking) are also included in these schemes.

Loans of up to 1.5 million rupees can be availed on personal guarantee of the borrower too without any need of additional requirements of collateral and third party guarantees as per sources.