The Government of Pakistan has introduced the Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB & ALS) ranging from Rs. 1.500 million to 5.000 million.
Designed specifically for rural youth aged between 21-45 years, this scheme aims to address their term loan and working capital financing needs within the agriculture sector with a low mark-up rate subsidized by the Government of Pakistan.
This scheme would be implemented by different banks in Pakistan e.g. Zarai Taraqiati Bank Limited (ZTBL), the selected banks would receive applications, and after scrutiny, final applicants would receive loan grants.
From now on, we will proceed with our guide on the agriculture loan scheme, by taking Zarai Taraqiati Bank Limited (ZTBL) as a reference for our guide. So, let’s start our guide!
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Agriculture Loan In Pakistan (15-50Lakh) [PM Youth Program]
Table Of Contents
- Agriculture Loan In Pakistan (15-50Lakh) [PM Youth Program]
- What Is The Prime Minister’s Youth Programs?
- Eligibility Criteria For Agriculture Loan In Pakistan
- Required Documents For Agriculture Loan In Pakistan
- Maximum Loan Limit For Agriculture Loans in Pakistan
- Step-by-Step Guide To Applying For PM Youth Loans
- Borrower’s Contribution For Agriculture Loan In Pakistan
- Collateral For Agriculture Loan In Pakistan
- Cost of Credit For Agriculture Loan In Pakistan
- Checking Your Prime Minister Youth Loan Status
- Repayment Schedule For Agriculture Loan In Pakistan
- Monitoring For Agriculture Loan In Pakistan
What Is The Prime Minister’s Youth Programs?
Here’s an overview of the Prime Minister’s Youth Programs:
| Program Name | Details |
|---|---|
| Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB & ALS) | Aimed at rural youth aged 21-45 years. Addresses term loan and working capital financing needs within the agriculture sector. Loan amounts range from Rs. 1.500 million to Rs. 5.000 million. Low mark-up rate subsidized by the Government of Pakistan. |
| Prime Minister’s Youth Program (PMYP) | Includes various schemes, such as the PMYB & ALS. Designed to empower and support youth in entrepreneurship and agriculture. Implemented by different banks in Pakistan. |
| Eligibility Criteria | Open to all citizens of Pakistan aged 21 to 45 years. Individuals engaged in entrepreneurial or agricultural/cottage activities are eligible. Government employees are not eligible. |
| Loan Application Process | Applications are submitted through the PM Youth Online Portal. Oversight by the Prime Minister’s House and the National Information Technology Board. |
| Documentation Required | Valid CNIC copy, e-CIB report, agricultural documents, and photographs. |
| Loan Limits | Production loans range from Rs. 1.500 million to Rs. 2.500 million. Development loans ranging from Rs. 1.500 million to Rs. 5.000 million. |
| Borrower’s Contribution | Borrowers are required to contribute 20% of the total loan amount. |
| Collateral | Secured against tangible properties or acceptable securities. Alternative collateral is accepted for rural youth without available collateral. |
| Interest Rate | Borrowers are responsible for a 7% markup on loans, with the remaining covered by the Government of Pakistan. |
| Loan Sanctioning Authority | Central Loan Sanctioning Department (CLSD) at the Head Office. |
| Repayment Schedule | Working capital loans repayable over 5 years, with an initial 2 years for markup only. Development loans are repayable over 8 years with half-yearly installments. |
| Monitoring and Oversight | Collaborative monitoring involving bank authorities, PMYP, SBP, and other stakeholders. |
Eligibility Criteria For Agriculture Loan In Pakistan
- Citizenship: Open to all citizens of Pakistan.
- Age Range: Applicants must fall within the age bracket of 21 to 45 years.
- Entrepreneurial Engagement: Individuals involved in entrepreneurial activities or engaged in agricultural/cottage activities are eligible.
- Loan Limit: Customers are allowed to avail themselves of two loans – one short-term and one long-term within their Micro Credit Line (MCL).
- Government Employment: Government employees are not eligible to apply for financing under this scheme.
- Previous Default Status: Individuals who are defaulters of ZTBL or any other Financial Institution are not eligible for financing under this scheme.
- Enhancement of Loan Limit: Only regular genuine borrowers are entitled to the facility of enhancing the Agriculture Loan limit.
- Documentation: A valid copy of a Computerized National Identity Card (CNIC) is a mandatory requirement.
- Credit History: Applicants must provide a clear electronic Credit Information Bureau (e-CIB) report from the State Bank of Pakistan (SBP).
- Risk Rating: Applicants with an Obligors Risk Rating (ORR) up to 4 are eligible for consideration under this financing scheme.
Required Documents For Agriculture Loan In Pakistan
| Step | Action |
|---|---|
| Loan Application Submission | Submit loan applications through the PM Youth Online Portal. |
| Application Mechanism | The Prime Minister’s House oversees the process. NITB and NADRA developed the online portal for application submission. |
| Application Tier and Submission | Apply through Tier-3 on the PM Portal. After submission, the application is sent to the relevant bank for processing. |
| Guidance and Application Assistance | Field functionaries guide applicants about the scheme and assist in completing the online application forms. |
| Agricultural Documentation | Provide essential agricultural documents: Agri. Passbook, Fard Jamamadi, or Alienability Certificate. |
| Photographic Evidence | Submit two recent photographs of the applicant. |
Maximum Loan Limit For Agriculture Loans in Pakistan
Production Loans
Borrowers can access a per-borrower/party loan limit ranging from Rs. 1.500 million to Rs. 2.500 million under the Production Loans.
Development Loans
The per borrower/party loan limit for Development Loans within the scheme for agriculture loans is set between Rs. 1.500 million to Rs. 5.000 million.
Step-by-Step Guide To Applying For PM Youth Loans
Here’s a step-by-step guide to applying for PM Youth Loans through ZTBL Bank:
| Step | Action |
|---|---|
| Step 1: Eligibility Check | Ensure you meet the eligibility criteria: Be a citizen of Pakistan aged between 21 to 45 years. Engaged in entrepreneurial or agricultural/cottage activities. Not employed by the government. |
| Step 2: Documentation | Gather required documents: Valid copy of Computerized National Identity Card (CNIC). Electronic Credit Information Bureau (e-CIB) report from the State Bank of Pakistan (SBP). Essential agricultural documents (Agri. Passbook, Fard Jamamadi, or Alienability Certificate). Two recent photographs. |
| Step 3: Online Application | Visit the PM Youth Online Portal: Access the portal through the designated website. Follow the instructions to create an account or log in if you already have one. |
| Step 4: Application Submission | Complete the loan application form: Provide accurate information as per the guidelines. Upload the required documents as specified. Double-check the information before submission. |
| Step 5: Tier Selection | Choose Tier-3 for application submission: Select the appropriate tier on the PM Portal interface. This tier ensures your application is routed to ZTBL Bank for processing. |
| Step 6: Application Review | Wait for application review: ZTBL Bank will scrutinize your application and documents for eligibility and completeness. Be prepared to provide additional information if requested. |
| Step 7: Loan Sanctioning | Await loan sanctioning: The Central Loan Sanctioning Department (CLSD) at ZTBL Head Office will approve loans up to the specified limit. You will be notified of the loan-sanctioning decision. |
| Step 8: Loan Disbursement | Receive loan disbursement: Once sanctioned, the approved loan amount will be disbursed into your designated bank account. Ensure all necessary arrangements are made to utilize the funds for the intended purpose. |
| Step 9: Repayment | Repay the loan as per the agreed schedule: Adhere to the repayment terms specified in the loan agreement. Make timely payments to avoid penalties or default. |
| Step 10: Monitoring | Participate in monitoring activities: Collaborate with ZTBL Bank and other stakeholders for ongoing monitoring of the loan scheme. Stay informed about any updates or changes related to your loan. |
Borrower’s Contribution For Agriculture Loan In Pakistan
Financial Participation:
Borrowers are required to contribute 20% of the total loan amount either through a deposit or investment for Agriculture Loan In Pakistan Project.
Collateral For Agriculture Loan In Pakistan
Secured Loan: The loan will be secured against various types of tangible properties or securities deemed acceptable by the Bank.
Alternative Collateral for Rural Youth: In instances where collateral is not available with rural youth, the property belonging to their parents or family members can be accepted as security. These individuals will be included as co-applicants for this purpose.
Cost of Credit For Agriculture Loan In Pakistan
Loan Application Fee
A Loan Application Fee of Rs.100/- will be charged, encompassing NADRA online verification charges.
Rate of Mark-up
Borrowers are responsible for paying a 7% markup on the loans. The remaining portion of the markup will be covered by the Government of Pakistan.
Checking Your Prime Minister Youth Loan Status
Here’s a brief step-by-step guide on how to check your Prime Minister Youth Loan status:
| Step | Action | Description |
|---|---|---|
| Step 1: Access Portal | Visit the PM Youth Online Portal | Go to the official PM Youth Online Portal designated for loan status inquiries. |
| Step 2: Log In | Log in to Your Account | Use your credentials to log in to your account on the portal. |
| Step 3: Navigate | Navigate to the Loan Status Section | Find the section or tab labeled “Loan Status” on the portal interface. |
| Step 4: Enter Details | Enter Required Information | Provide necessary details such as your application ID or CNIC number. |
| Step 5: Submit | Submit Your Request | Submit your request to check the status of your Prime Minister Youth Loan. |
| Step 6: Review | Review Status Update | Wait for the portal to display the status of your loan application. |
| Step 7: Follow Up | Follow Up as Necessary | If needed, follow up with relevant authorities for further clarification. |
Repayment Schedule For Agriculture Loan In Pakistan
Working Capital Loans
The repayment period for working capital loans is set at 5 years. During the initial 2 years, only the markup will be payable. Subsequently, for the next 3 years, both principal and markup will be paid, completing the total repayment period of 5 years.
Development Loans
Development loans will be repaid within 8 years through half-yearly installments.
Monitoring For Agriculture Loan In Pakistan
Collaborative Oversight
The monitoring of the scheme will be conducted through close collaboration among the respective Bank authorities, PM Youth Program (PMYP), State Bank of Pakistan (SBP), and other relevant stakeholders.
Regular Evaluation:
Ongoing assessments will be implemented to ensure effective supervision and compliance with the program’s objectives.
Stakeholder Involvement
Multiple stakeholders, including banking authorities, the PM Youth Program, and the State Bank of Pakistan, will actively participate in the monitoring process to guarantee transparency and accountability.
Contact Detail of Zari Taraqiati Bank Loan (ZTBL)
- Official Website: https://ztbl.com.pk/
- Address: 1 Faisal Ave, Near Zero Point Interchange, G-7/1, Islamabad Capital Territory, P.O Box 1400.
- Telefone: 051 9252805
- Email: contactus@ztbl.com.pk
Frequently Asked Questions (FAQs) – Agriculture Loan
What is the Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB & ALS)?
PMYB & ALS is a collaborative initiative between the Government of Pakistan and the State Bank of Pakistan aimed at providing term loans and working capital financing to rural youth aged between 21-45 years in the agriculture sector.
What are the loan limits available under the scheme?
Borrowers can access loan limits ranging from Rs. 1.500 million to Rs. 2.500 million for production loans and Rs. 1.500 million to Rs. 5.000 million for development loans.
How many loans can customers avail of within their Micro Credit Line (MCL)?
Customers are allowed to avail themselves of two loans – one short-term and one long-term – within their Micro Credit Line.
Are there any eligibility criteria for enhancing the Agriculture Loan limit?
Only regular genuine borrowers are entitled to the facility of enhancing the Agriculture Loan limit.
What documentation is required for a loan application?
A valid copy of the Computerized National Identity Card (CNIC) is a mandatory requirement, along with a clear electronic Credit Information Bureau (e-CIB) report from the State Bank of Pakistan.
How much is the borrower’s contribution towards the total loan amount?
Borrowers must contribute 20% of the total loan amount through a deposit or investment for the Agriculture Loan project.
What is the Loan Application Fee?
A Loan Application Fee of Rs.100/- will be charged, encompassing NADRA online verification charges.
What is the loan markup rate, and how is it distributed between the borrower and the Government of Pakistan?
Borrowers are responsible for paying a 7% markup on the loans, with the remaining portion of the markup covered by the Government of Pakistan.
Who sanctions the loans, and what is the maximum sanction limit?
The Central Loan Sanctioning Department (CLSD) at the Head Office is the designated authority for sanctioning loans, with a maximum sanction limit of Rs. 5.000 million.
What are the repayment periods for different types of loans?
Working capital loans have a repayment period of 5 years, with only markup payable in the initial 2 years. Development loans have an 8-year repayment period through half-yearly installments.
How is the scheme monitored to ensure its effectiveness and transparency?
Close monitoring is conducted through collaboration among respective Bank authorities, the PM Youth Program (PMYP), and the State Bank of Pakistan, ensuring transparency and accountability. Multiple stakeholders actively participate in the monitoring process.
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