PM Youth Loan Scheme Tier 4 Rs 25 Million: 8% Markup Guide

PM Youth Loan Scheme Tier 4 Rs 25 Million: Who Can Apply and How

Tier 4 of the PM Youth Loan Scheme offers financing above Rs 7.5 million and up to Rs 25 million at 8% markup, with repayment of up to eight years. It covers new and existing businesses in business, agriculture and manufacturing. Applicants aged 21 to 45 can apply online through the official portal at pmybals.pmyp.gov.pk.

What Is PM Youth Loan Scheme Tier 4?

Tier 4 is the new top financing category of the Prime Minister's Youth Business and Agriculture Loan Scheme, known as PMYB&ALS. It sits above the three older tiers and covers larger loans that the old ceiling of Rs 7.5 million could not fund. The federal government approved the new category in November 2026, and the federal cabinet and the Economic Coordination Committee have sanctioned it.

The scheme itself is part of the Prime Minister's Youth Programme, known as PMYP. It gives subsidised business and agriculture loans to young Pakistanis through 15 participating commercial, Islamic and SME banks. The State Bank of Pakistan oversees the scheme, and the banks assess each application on merit. Tier 4 keeps that structure and only changes the size of loan you can ask for.

Tier 4 is for growth, not for starting small. It targets young people whose businesses already work and now need bigger money to expand, buy machinery, build a cold chain or reach export markets. If you need Rs 7.5 million or less, the older tiers still apply, and our guide to the Prime Minister Youth Loan Scheme 2026 covers them in full.

What Changed in November 2026?

The change came in two steps. On 8 November 2026, Prime Minister Shehbaz Sharif chaired a review meeting on the youth business and agriculture loan schemes and announced that the personal loan limit would rise from Rs 7.5 million to Rs 25 million. The Press Information Department published its press release, "Big Relief for Youth: Loan Limit Raised to Rs 25 Million", on 10 November 2026. Then, on 11 November 2026, Dawn reported that the federal cabinet and the Economic Coordination Committee had sanctioned the new Tier 4 category, with the terms now fixed at 8% markup for up to eight years. The chairman of the Prime Minister's Youth Programme, Rana Mashhood Ahmad Khan, announced the sanctioned terms.

That sequence matters, because early reports on 8 and 9 November 2026 only confirmed the higher limit. They did not confirm the markup or the repayment period, and some guides published in that window said the markup above Rs 7.5 million had not been announced yet. The 11 November 2026 reports settled the markup and the repayment period, so this post uses the later, confirmed figures.

The government has set a target of about 266,700 young people to receive financing in FY 2026-27, with about 835,000 jobs expected from it. Funds will be split equally between agriculture and small businesses, and about three in four beneficiaries will receive interest-free Tier 1 loans. These targets come from the 11 November 2026 Dawn report on the policy update.

One more change helps the government pay for the scheme. For Tier 3 and Tier 4, the banks' profit margin has been reduced to KIBOR plus 2.4%, while the rate paid by borrowers stays unchanged. Khabr reported that this cut saves the government Rs 600 million for every Rs 10 billion provided.

How Much Can You Borrow Under Tier 4?

Tier 4 covers financing above Rs 7.5 million and up to Rs 25 million. That range is the whole point of the new tier. A business that needs Rs 10 million, Rs 15 million or Rs 20 million had no option under the old ceiling, because Tier 3 stopped at Rs 7.5 million. Now that gap is closed, and the markup for the full Tier 4 range is 8%.

The table below shows all four business and agriculture tiers together, so you can see where Tier 4 fits. Tier 1 stays interest-free, and the markup rises with the loan size. The figures are as of 13 November 2026.

Two details in the table need care. The Tier 1 period of up to 3 years and the Tier 2 and Tier 3 periods of up to 8 years come from our earlier scheme guide and the published scheme rules. The Tier 4 period of up to eight years comes from the 11 November 2026 Dawn report. No grace period has been published for Tier 4 yet, so do not assume the one-year grace period for Tier 2 and Tier 3 development loans also applies here. Ask your bank for the Tier 4 repayment schedule before you accept an offer.

The scheme also has a separate Tier 5, which is easy to confuse with Tier 4. Tier 5 provides interest-free loans for laptops, up to Rs 450,000, and for prospective overseas workers, up to Rs 1 million. Some older guides used the label "Tier 4" for laptop and overseas-worker loans, because the scheme once counted those as a fourth tier. That old label is now out of date. Under the November 2026 update, Tier 4 means the Rs 25 million business and agriculture tier, and laptop and overseas-worker loans sit in Tier 5.

Who Can Apply for Tier 4?

Tier 4 uses the same basic eligibility rules as the rest of the scheme. You must be a Pakistani citizen with a valid CNIC, and you must live in Pakistan. The general age range is 21 to 45 years at the date you apply. For IT and e-commerce businesses, the minimum age is 18 years. Your age is checked against your NADRA record when you enter your CNIC on the portal.

Both new and existing businesses can apply. That matters for Tier 4, because most applicants at this loan size will already run a business. A new venture can still apply if its plan is viable and the bank is satisfied with the feasibility and repayment capacity, but an existing business with sales records and bank statements has a stronger case. For companies and partnerships, at least one owner, partner or director must fall inside the age range.

Which Businesses Can Use Tier 4 Financing?

Tier 4 supports larger projects in business, agriculture and manufacturing. Dawn's 11 November 2026 report names agro-processing, cold chains, mechanised farming, solar energy, manufacturing and exports as the target areas. These are projects that need more than Rs 7.5 million, such as a processing plant, a cold storage unit, farm machinery or an export order pipeline.

The wider scheme also covers retail and wholesale trade, livestock and dairy farming, food processing, IT and software development, and e-commerce. A Tier 4 application in any of these areas still needs a viable business plan and proof that the business can repay the loan. The bank, not the portal, decides whether your project fits the tier.

If your need is smaller, do not stretch it to reach Tier 4. A loan of Rs 5 million belongs in Tier 3 at 7% markup, which is cheaper than Tier 4 at 8%. Use our Youth Loans and Financing Drive 2026 guide to compare the lower tiers before you choose.

How to Apply for Tier 4 Online

Applications go through the official portal only. There is no paper form at bank branches, and no bank branch takes a Tier 4 application in person. Apply online at pmybals.pmyp.gov.pk, through the Prime Minister's Digital Youth Hub at pmyp.gov.pk or the PMYP mobile app. Follow these steps:

1. Open the official portal at pmybals.pmyp.gov.pk and click "Apply for Loan". Read the instructions on screen before you start.
2. Enter your CNIC number, CNIC issue date and date of birth. The portal verifies these details with NADRA, so type them exactly as shown on your card.
3. Register with a mobile number in your own name. The portal sends a verification code to that number, and the bank will contact you on it later.
4. Select your loan category. Choose Tier 4 only if the portal shows it as an option and your amount is above Rs 7.5 million.
5. Enter your business details, including the nature of the business, the amount you need and your financial information.
6. Upload the documents the portal asks for. The exact list depends on your business and your bank.
7. Choose your participating bank and branch from the options on the portal.
8. Review every field carefully, then submit. Save the application registration number shown on screen, because you will need it to track your application.

The portal may take time to reflect the new tier. If Tier 4 is not available in the form when you open it, do not select Tier 3 for a Tier 4 amount just to submit the form. Wait for the portal update or check the official portal for updated instructions. Our earlier guide notes a nominal Rs 100 processing fee and a bank processing time of about 45 business days for scheme applications, but those figures come from the older tier rules, so confirm them with your bank for Tier 4.

What Documents Do You Need for Tier 4?

Prepare your documents before you start, because an incomplete file slows the bank's assessment. The exact list varies by business and bank, but the items below are the ones banks commonly ask for under this scheme. Keep clear scans or photos ready.

• Valid CNIC, front and back.
• Recent passport-size photograph.
• Mobile number registered in your own name.
• Business feasibility plan with income and expense estimates.
• Financial statements, if available, and recent bank statements.
• National Tax Number (NTN), if required for your business.
• Electricity bill consumer ID for your current address.
• Business registration or trade documents, where applicable.
• Recommendation letter from the relevant chamber, trade body or union, for existing businesses.
• Names, CNIC numbers and mobile numbers of two references who are not blood relatives.

Existing businesses should also have their sales records and bank transaction history ready, because a Tier 4 loan is large and the bank will want proof that the business earns enough to repay it. No collateral rule for Tier 4 has been published as of 13 November 2026. Tier 3 loans already need security under each bank's credit policy, so ask your chosen bank what security a Tier 4 loan needs before you apply. The lower tiers work differently: Tier 1 and Tier 2 loans use a personal guarantee rather than property. If your business plan needs work before you apply, SMEDA gives free guidance on business plans and loan paperwork.

What Is Still Unclear About Tier 4?

Tier 4 is approved, but it is new, and some details are still missing. Confirmed as of 13 November 2026: the maximum loan is Rs 25 million, the markup is 8%, the repayment period is up to eight years, the age range is 21 to 45 with 18 for IT and e-commerce, 30% of loans are directed to women, and the scheme covers new and existing businesses with Islamic financing available.

Not yet confirmed: the State Bank of Pakistan notification with the full Tier 4 rules, the date the portal and banks start accepting Tier 4 applications, the collateral a Tier 4 loan needs, the grace period for Tier 4, and whether the minimum age of 18 will apply to all applicants or stay limited to IT and e-commerce. No closing date has been announced, so do not trust anyone who says the last date is tomorrow.

The scheme's record gives useful context. From January 2023 to September 2026, about 581,000 young people received Rs 314 billion under the scheme, according to the 8 November 2026 government advertisement. State Bank data to June 2026 shows 555,791 loans worth Rs 287.62 billion, with about 62% of loans by number going to agriculture. Over 99% of disbursed loans have been repaid, and the rate of unrecoverable loans is 0.74%. Those figures describe the older tiers, not Tier 4.

How to Avoid Loan Agents and Fake Portals

The chairman of the Prime Minister's Youth Programme has stressed that no agent or recommendation is needed, because banks decide every application on merit. That warning matters more for Tier 4, because a Rs 25 million loan attracts more fraud than a small one.

Apply only at pmyp.gov.pk or pmybals.pmyp.gov.pk, and type the address yourself instead of clicking a link in a message or social media post. Never pay anyone who promises approval, and never share your CNIC photo, bank details or one-time password with a person who contacts you about the scheme. The application itself is free to submit through the official portal, and the bank contacts you through the number you registered. If a person asks for money to move your file, stop and report the number to your bank.