Young Pakistanis who want to start or grow a business can now borrow far more than before. On 10 November 2026, PMYP Chairman Rana Mashhood Ahmad Khan announced that the maximum loan under the youth loan scheme has risen from Rs 7.5 million to Rs 25 million.
The PM Youth Loan Tier 4 is the scheme’s new top tier. It offers loans of more than Rs 7.5 million and up to Rs 25 million at 8% markup, repayable over up to eight years. This article explains the new tier, the four-tier structure, who can apply, and how to apply.
| Detail | Fact |
|---|---|
| Announced | 10 November 2026, PMYP Chairman Rana Mashhood Ahmad Khan |
| New maximum loan | Rs 25 million (raised from Rs 7.5 million) |
| New tier | Tier-4: above Rs 7.5 million up to Rs 25 million, at 8% markup |
| Repayment period | Up to 8 years |
| Approved by | ECC, ratified by the Federal Cabinet |
| Age limit | 21 to 45 years |
| Where to apply | Digital Youth Hub, pmyp.gov.pk, or PMYP mobile app |
What Changed in November 2026
Until now, the largest loan under the scheme was Rs 7.5 million. That ceiling has now more than tripled, after approval by the Economic Coordination Committee and ratification by the Federal Cabinet.
- Higher ceiling: the maximum loan has risen from Rs 7.5 million to Rs 25 million.
- New top tier: Tier-4 covers loans above Rs 7.5 million and up to Rs 25 million.
- Fixed markup: Tier-4 loans carry 8% markup.
- Longer repayment: Tier-4 loans can be repaid over up to eight years.
- Cheaper for banks: banks’ margin on Tier-3 and Tier-4 cut from KIBOR plus 3% to KIBOR plus 2.4%; borrower rates unchanged.
The Four Tiers at a Glance
The scheme has four tiers, each with its own loan range and markup rate. The markup rises modestly as the loan size grows.
- Tier-1: loans up to Rs 0.5 million at 0% markup.
- Tier-2: loans from Rs 0.5 million to Rs 1.5 million at 5% markup.
- Tier-3: loans from Rs 1.5 million to Rs 7.5 million at 7% markup.
- Tier-4: loans above Rs 7.5 million and up to Rs 25 million at 8% markup.
Who Can Apply
Applicants must be between 21 and 45 years old. Check the portal for the full eligibility conditions before applying.
- Age: applicants must be between 21 and 45 years of age.
- Purpose: the loan must be for a business or self-employment plan.
- Business plan: larger loans, especially in Tier-4, are meant for viable business proposals.
- Official check: confirm all conditions on the official portal before submitting.
How to Apply Online
Applications are submitted online through the Prime Minister’s Digital Youth Hub or the PMYP mobile app. The loan portal is pmybals.pmyp.gov.pk, and the main programme website is pmyp.gov.pk.
- Visit the portal: go to the Prime Minister’s Digital Youth Hub at pmyp.gov.pk or open the PMYP mobile app.
- Open the loan portal: use pmybals.pmyp.gov.pk to reach the loan application section.
- Register: create an account with your personal details and contact information.
- Choose your tier: select the tier that matches the loan amount your business plan needs.
- Submit: fill in the form, attach the required documents, and submit.
No closing date has been announced; do not rely on any last date from unofficial sources.
What Tier-4 Loans Can Be Used For
Tier-4 is aimed at larger, growth-oriented businesses. The announcement names the sectors it is meant to support.
- Agro-processing: businesses that process farm produce into finished goods.
- Cold chains: storage and transport systems that keep food fresh from farm to market.
- Mechanised farming: modern machinery and equipment for agriculture.
- Solar energy: solar power projects for homes, farms and businesses.
- Manufacturing: small and medium factories producing goods for local and export markets.
- Exports: businesses that sell Pakistani products abroad.
What the Programme Has Delivered So Far
Between January 2023 and September 2026, Rs 314 billion was disbursed to 581,000 young people across Pakistan.
- Already disbursed: Rs 314 billion to 581,000 young people, from January 2023 to September 2026.
- This year’s target: Rs 292.5 billion to about 266,700 young Pakistanis in FY 2026-27.
- Jobs expected: around 835,000 jobs from the year’s lending.
- New ceiling: Rs 25 million, the highest the scheme has ever offered.
The Tier-4 announcement also shows how the programme is changing. Small loans remain interest-free at the lowest tier, while the top tier now serves businesses that need far larger sums to grow, hire workers and reach new markets.
| Contact | Detail |
|---|---|
| Official website | pmyp.gov.pk — Prime Minister’s Digital Youth Hub |
| Loan portal | pmybals.pmyp.gov.pk |
| Mobile app | PMYP mobile app |
| Programme | Prime Minister’s Youth Programme (PMYP) |
Conclusion
The PM Youth Loan Tier 4 raises the ceiling for young entrepreneurs from Rs 7.5 million to Rs 25 million at 8% markup, with up to eight years to repay. Approved by the ECC and ratified by the Federal Cabinet, it targets growth sectors such as agro-processing, cold chains, mechanised farming, solar energy, manufacturing and exports. For FY 2026-27, Rs 292.5 billion is targeted for about 266,700 young Pakistanis. Eligible applicants aged 21 to 45 should apply through the official portal at pmyp.gov.pk or the PMYP mobile app.
FAQs
What is the maximum loan under PM Youth Loan Tier 4?
Under Tier-4, applicants can borrow above Rs 7.5 million and up to Rs 25 million.
What is the markup rate for Tier-4 loans?
Tier-4 loans carry 8% markup, repayable over up to eight years.
Who can apply for the PM Youth Loan?
Pakistanis aged 21 to 45 can apply, subject to the conditions on the official portal.
How do I apply for the PM Youth Loan?
Apply online through the Digital Youth Hub, pmyp.gov.pk, or PMYP mobile app; the loan portal is pmybals.pmyp.gov.pk.
Is there a last date to apply?
No closing date has been announced.
The editor of epdpunjab.pk, covering the Environment Protection & Climate Change Department, Punjab and the CM Punjab Climate Leadership Development Internship Program 2026, with information verified from official sources.
