Prime Minister's Business Loans

Brief description

Prime Minister's Business Loans will focus on unemployed youth, especially educated, looking for establishing new enterprises.

Eligibility criteria

All young men/women. Age not more than 45 Years.  Entrepreneurial potential.

Focus on women

50% of loans will go to women borrowers.

Debt-Equity ratio

90:10 with tenor of up to 8 years; 1st year grace period and then easy monthly installments for 7 years.


8% fixed for borrower but government will pay the difference of the cost at KIBOR+500 bps.


SBP to explore providing 50% refinance at the risk of participating banks

Risk mitigation

Government will share 50% of losses subject to a maximum of 10% of the loan amount

Number of Loans

100,000 in fiscal year 2013-14

Size of Loan

Rs.0.1 – 2.0 Million

Average Loan Size

Rs.1.25 Million

Allocation in Budget 2013-14

Rs.5 billion

Executing agency

NBP and First Women Bank under the guidance and supervision of SBP. Other Banks will be encouraged to join.

Sectors and Products

All sectors. Standardized schemes/projects/ undertakings will be designed by SMEDA, projects designed by private sector service provider or individuals themselves.

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