PM Youth Loan Tier 4: Rs25 Million Loans at 8% Markup – Eligibility, Tiers and How to Apply

The Prime Minister’s Youth Business and Agriculture Loan Scheme has a new top tier. PM Youth Loan Tier 4 was formally announced on Tuesday, 10 November 2026, by the Chairman of the Prime Minister’s Youth Programme, Rana Mashhood Ahmad Khan, at a press conference at the Press Information Department in Islamabad. The new tier raises the maximum loan from Rs7.5 million to Rs25 million at an 8 per cent markup for up to eight years, and it has been approved by the Economic Coordination Committee and ratified by the Federal Cabinet. It turns the decision Prime Minister Shehbaz Sharif announced on 8 November into a finished, funded product that young entrepreneurs can now apply for.

What PM Youth Loan Tier 4 Offers

Until now, subsidised youth loans stopped at Rs7.5 million. A young person whose business had outgrown that ceiling had nowhere to go inside the scheme. PM Youth Loan Tier 4 closes that gap, and it is aimed squarely at businesses that are ready to grow into small and medium enterprises.

• Loan size: above Rs7.5 million and up to Rs25 million — more than three times the old ceiling
• Markup: 8 per cent, fixed for the borrower under the new tier
• Maximum tenure: up to eight years, giving larger projects time to repay
• Target sectors: agro-processing, cold chains, mechanised farming, solar energy, manufacturing and exports
• Who it is for: new ventures and existing businesses, in business and agriculture, with Islamic financing also available
• The idea behind it: as the PMYP Chairman put it, Tier-4 turns today’s small business into tomorrow’s employer of hundreds

The tier matters because it changes who the scheme serves. The lower tiers help a young person start. Tier-4 helps a young person who has already started to scale — to buy machinery, build a cold chain, set up a solar unit or move from local sales into exports.

All Five Loan Tiers at a Glance

The Prime Minister’s Youth Business and Agriculture Loan Scheme now has five tiers. The first three are unchanged, Tier-4 is new, and Tier-5 covers interest-free loans for laptops and overseas workers.

There is also a change that helps the scheme itself go further. The banks’ margin on Tier-3 and Tier-4 loans has been cut from KIBOR plus 3 per cent to KIBOR plus 2.4 per cent, while the rates borrowers pay stay the same at 7 per cent and 8 per cent. The government says this saves about Rs0.6 billion on every Rs100 billion disbursed, so more young people can be financed within the same budget.

Who Can Apply for PM Youth Loan Tier 4

Eligibility for the new tier follows the scheme’s existing rules, with the age limit now spelled out in full. The Prime Minister’s direction on 8 November was to cut the minimum age from 21 to 18; today’s formal announcement clarifies how that applies.

• Age: young Pakistanis aged 21 to 45 can apply; applicants from age 18 can apply for information technology and e-commerce financing
• New or existing business: both new ventures and existing businesses are eligible
• Fields: business and agriculture, including agro-processing, cold chains, mechanised farming, solar energy, manufacturing and exports under Tier-4
• Islamic financing: available for applicants who prefer it
• Women applicants: 30 per cent of the loans under the scheme are reserved for women, as directed by the Prime Minister on 8 November
• No agent needed: the PMYP Chairman stressed that no agent or recommendation is needed — banks decide every application on merit

Applicants should note the age clarification carefully. The headline from 8 November was that 18-year-olds could apply. The formal Tier-4 announcement keeps 18 as the entry age only for IT and e-commerce, while the general age range is 21 to 45. Young applicants should check the tier and category they are applying under before they submit.

How to Apply for PM Youth Loan Tier 4

Applications are made online only, through the Prime Minister’s Youth Programme’s own channels. No other website or agent is part of the official process.

1. Open the Digital Youth Hub: go to www.pmyp.gov.pk or open the PMYP mobile app on Google Play Store or Apple App Store
2. Choose the loan scheme: select the Prime Minister’s Youth Business and Agriculture Loan Scheme and the tier that matches the amount needed — Tier-4 for amounts above Rs7.5 million up to Rs25 million
3. Fill in the application: enter personal, business or agriculture details as asked on the form
4. Submit and wait for the bank: the application goes to a participating bank, which assesses it on merit and decides
5. Keep documents ready: the bank will ask for the documents that support the business plan and the applicant’s eligibility

Applicants should apply only through the official portal or app. Anyone offering to get a loan approved for a fee, or asking for payment to put a name on a list, is not part of the scheme.

What the Numbers Say: A Scheme That Gets Repaid

The press conference put unusual emphasis on repayment, and the figures explain why. The scheme’s record is the government’s main argument for expanding it to Rs25 million loans.

• Repayment rate: young entrepreneurs have repaid more than 99 per cent of what they borrowed, with non-performing loans at just 0.74 per cent
• Since January 2023: 581,341 young entrepreneurs financed with Rs313.9 billion, creating an estimated 1.82 million jobs
• Growth: ten times the borrowers of the previous decade, achieved in under four years, with annual lending up from under 17,000 to about 170,000 young people a year
• Since 2013: the scheme has reached 638,081 borrowers with Rs392.4 billion and nearly 2 million jobs
• Agriculture leads: 62 per cent of the borrowers since 2023 are in agriculture
• Women borrowers: more than 121,000 young women — one in every five borrowers — have received Rs36.6 billion

For the current financial year 2026-27, the government plans to finance about 266,700 young Pakistanis with Rs292.5 billion, creating about 835,000 jobs. The funds will be split equally between agriculture and small businesses, and about three in four beneficiaries will receive interest-free Tier-1 loans.

What Changed Since the 8 November Announcement

Readers who followed the 8 November announcement may wonder what is actually new today. The Prime Minister’s meeting announced the higher limit; today’s press conference turns it into a working tier with terms, approvals and an application route.

• Formal approval: Tier-4 has now been approved by the Economic Coordination Committee and ratified by the Federal Cabinet — the 8 November announcement was a prime ministerial direction at a review meeting
• The tier itself: the Rs7.5 million to Rs25 million band is now formally named Tier-4, with its own markup and tenure
• Markup and tenure fixed: 8 per cent markup for up to eight years — neither figure was given on 8 November
• Sectors named: agro-processing, cold chains, mechanised farming, solar energy, manufacturing and exports are the Tier-4 focus areas
• Age clarified: 21 to 45 generally, and from 18 for IT and e-commerce — a clarification of the blanket age-18 headline from 8 November
• Cheaper for the government: the bank margin cut from KIBOR plus 3 per cent to KIBOR plus 2.4 per cent on Tier-3 and Tier-4 loans was announced today

Taken together, the two announcements tell one story: the limit went up on 8 November, and the new tier that carries it was formally launched on 10 November. Young people who were waiting for the details — the markup, the tenure, the sectors and the exact age rule — now have them.

Contact and Helpline Details

No helpline number was published in the official announcement coverage, so none is given here. Applicants should use only the official portal or app, and should not pay any agent or middleman.

Conclusion

PM Youth Loan Tier 4 is the formal, funded version of the Rs25 million promise made on 8 November. With an 8 per cent markup, a tenure of up to eight years, Cabinet approval behind it and named sectors from agro-processing to solar energy, it gives growing young businesses a route that did not exist inside the scheme before. The age rule needs care — 21 to 45 in general, 18 and above for IT and e-commerce — and the 30 per cent quota for women still stands. Young Pakistanis with a business ready to grow can apply now through the Digital Youth Hub at pmyp.gov.pk or the PMYP mobile app, and the banks will decide on merit. The scheme’s own record — more than 99 per cent repaid — is the strongest reason to take the opportunity seriously.

Frequently Asked Questions

What is PM Youth Loan Tier 4?

PM Youth Loan Tier 4 is the new top tier of the Prime Minister’s Youth Business and Agriculture Loan Scheme. It offers loans above Rs7.5 million and up to Rs25 million at an 8 per cent markup for up to eight years, and it was formally announced on 10 November 2026 after approval by the Economic Coordination Committee and ratification by the Federal Cabinet.

Who can apply for Tier 4 loans?

Young Pakistanis aged 21 to 45 can apply, and applicants from age 18 can apply for information technology and e-commerce financing. Both new ventures and existing businesses in business and agriculture are eligible, and Islamic financing is available.

What is the markup and tenure for Tier 4?

Tier-4 loans carry an 8 per cent markup for a maximum period of eight years. The other tiers are Tier-1 up to Rs0.5 million at 0 per cent, Tier-2 from Rs0.5 million to Rs1.5 million at 5 per cent, and Tier-3 from Rs1.5 million to Rs7.5 million at 7 per cent.

How do I apply for the PM Youth Loan?

Apply online through the Prime Minister’s Digital Youth Hub at www.pmyp.gov.pk or through the PMYP mobile app on Google Play Store or Apple App Store. No agent or recommendation is needed, and banks decide every application on merit.

Is there a quota for women under the scheme?

Yes. Prime Minister Shehbaz Sharif directed on 8 November 2026 that 30 per cent of the loans under the scheme be reserved for women. More than 121,000 young women have already received Rs36.6 billion under the scheme since 2023.