PM raises youth loan limit to Rs25m, lowers minimum age to 18
The maximum loan under the Prime Minister's youth business and agriculture schemes has risen from Rs7.5 million to Rs25 million. The minimum age for applicants has been cut from 21 to 18.
- Loan limit raised from Rs7.5 million to Rs25 million
- Minimum age lowered from 21 to 18 years
- 30 percent of loans reserved for women
- Rs292 billion allocated for youth loans this year
Prime Minister Shehbaz Sharif has raised the maximum loan under the Prime Minister's Youth Business and Agriculture Loan Schemes from Rs7.5 million to Rs25 million. The minimum age for applicants has also been lowered from 21 to 18 years.
The decisions were taken at a review meeting of the schemes chaired by the prime minister. Finance Minister Senator Muhammad Aurangzeb, the prime minister's Special Assistant on Youth Affairs Rana Mashhood Ahmad Khan and his Special Assistant on Political Affairs Talha Barki attended.
Officials told the meeting that loans of up to Rs25 million will be provided in easy instalments. Rs292 billion has been allocated this year for young people under the schemes.
Thirty percent of the loans are to be reserved for women. According to sources cited by 24 News, this is meant to help women start businesses and take part in farming. The prime minister stressed that women should get better opportunities to become financially independent and play a greater role in business activities.
Mr Sharif directed SMEDA to give young applicants guidance on starting a business, along with advisory and technical support. He also directed a nationwide awareness campaign about the schemes and the opportunities available.
According to the briefing, 581,341 young people have received loans since January 2023, which it said is 10 times more than in the previous ten years. Loans disbursed in that period total Rs313.9 billion.
The briefing estimated that in 2026-27, 266,700 young people will receive Rs292 billion in loans. The prime minister praised Mr Aurangzeb and his team for their efforts to provide young people with financial support for business and agriculture.
Prime Minister Shehbaz Sharif said: "نوجوان پاکستان کا قیمتی اثاثہ ہیں۔"
Why it matters
Young people aged 18 and above can now apply, where the minimum was previously 21. Those seeking to start a business or farm can apply for loans of up to Rs25 million, more than three times the earlier Rs7.5 million cap. Women are covered by a 30 percent reservation of loans under the schemes. Rs292 billion has been allocated for youth loans this year.
