PM Youth Loan Scheme Without Interest December 2025

You've heard the talk about the PM Youth Loan Scheme but what if we told you that a part of it is available without interest? Yes, you can get a business or agriculture loan up to PKR 0.5 million with a 0% markup. This is the game-changer for new entrepreneurs. We are talking about the Tier-1 category of the revamped PM Youth Loan Scheme 2025. Don't let your startup dream be crushed by high-interest rates. Keep reading to find out how to secure this youth loan scheme without interest and launch your future.

What is the PM Youth Loan Scheme Without Interest 2025?

A particular level of the PM Youth Loan Scheme Without Interest (Tier 1) provides up to PKR 0.5 million at a zero mark-up.

• This aspect of the PM Youth Loan Scheme 2025 is expected to help small and new businesses and the young entrepreneurs who have a great idea but do not have capital.
• The loan is clean in the sense that you only require a personal guarantee and the procedure is very simple as opposed to secured loans.
• This interest-free and smaller financing is a giant leap of the scheme, aimed to be more affordable to real people who are starting off.
• The most important thing is to ensure that your business plan is strong.

Eligibility Simplified: Do You Qualify for the PM Youth Loan?

The scheme targets youth with entrepreneurial potential.

Tier 1 Loan Details (Interest-Free)

To qualify for the youth loan scheme without interest:

• You must be a Pakistani citizen with a valid CNIC.
• The general age bracket is 21 to 45 years.
• Crucially, if your business is related to IT or E-Commerce, the minimum age drops to 18 years.
• In the case of a new business, you are required to make 10 percent contribution in terms of equity and the bank will take 90 percent of the amount of the Tier 1 loan.

This PM Youth Loan scheme applies to new businesses as well as to existing businesses.

FAQs

1. What is the actual loan limit for the PM Youth Loan Scheme Without Interest?

The interest-free portion of the scheme is specifically for Tier 1 loans. The maximum financing limit for a PM Youth Loan Scheme Without Interest Tier 1 is PKR 0.5 million. This amount is designed for small-scale startups and micro-enterprises.

2. What security is required for the 0% mark-up PM Youth Loan in 2025?

The Tier 1 loan of the 0% mark-up rate would be a clean loan in terms of security requirement. It is not guaranteed by physical security like property but only by the personal guarantee of the borrower. This increases accessibility of the PM youth loan to the youth who have no assets to mortgage.

3. Can I get a PM Youth Loan if I'm under 21 years old?

Yes, you can! The minimum age of 21 years is standard although there is an exception. The minimum age of PM Youth loan scheme 2025 is reduced to 18 years when the applicant is starting a business of IT/E-Commerce. This aspect recognizes the younger generation's participation in the technology industry and can access the scheme by more digital entrepreneurs.

4. How fast is the processing time for the youth loan scheme without interest?

The official processing time may take some time, depending on the bank and documents provided by the applicant, but some banks would strive to have the loan processed within 15 working days in case all the required information is provided. To fast track your youth loan scheme without interest application, make sure that you have your business feasibility and all the required documents ready and apply online.