Govt Raises Youth Business Loan Limit to Rs25 Million, Women to Receive 30% Share

The government has increased the maximum loan limit under the Prime Minister’s Youth Business and Agriculture Loan Schemes to Rs25 million. It has also reduced the minimum eligibility age from 21 to 18 years.

Prime Minister Shehbaz Sharif announced the changes during a review meeting on Sunday. He directed authorities to reserve 30% of the loans for women to encourage greater financial inclusion and entrepreneurship.

The revised limits aim to expand access to credit for young people seeking to establish businesses, expand existing operations or invest in agriculture.

Youth Loan Limit Increased to Rs25 Million

The government has raised the maximum financing limit from Rs7.5 million to Rs25 million, significantly increasing the amount available to eligible applicants.

The prime minister also directed officials to provide financing through easy instalments. The measure aims to help young entrepreneurs manage repayments while developing their businesses.

According to an official briefing, the schemes have provided Rs313.9 billion in loans to 581,341 young people since January 2023.

The number of beneficiaries is reportedly ten times higher than the total recorded during the previous decade.

Gulf Markets Gain on Hopes Iran Strikes Will Stay Off the Table

Rs292 Billion Allocated for 2026-27

The government has allocated Rs292 billion for the fiscal year 2026-27. The funding aims to provide loans to approximately 266,700 young people.

The prime minister instructed the Small and Medium Enterprises Development Authority (SMEDA) to strengthen support for applicants.

SMEDA will provide business consultancy, technical assistance and startup guidance to aspiring entrepreneurs.

He also ordered a nationwide awareness campaign to inform eligible young people about financing opportunities and available support services.

Women to Receive 30% of Loans

The government has reserved 30% of the financing for women under the revised scheme.

The allocation aims to improve women’s access to credit and support their participation in business and agricultural activities.

The initiative also seeks to create employment opportunities, promote entrepreneurship and strengthen financial independence.

However, effective implementation and timely disbursement will remain essential. Authorities will need to ensure that financing reaches eligible applicants with viable business plans.