Shehbaz Sharif Raises Youth Loan Limit to Rs25 Million, Minimum Age Cut to 18

Loan limit raised from Rs7.5 million to Rs25 million

Prime Minister Shehbaz Sharif has raised the maximum individual loan under the Prime Minister's Youth Business Loan Scheme and the Prime Minister's Youth Agriculture Loan Scheme from Rs7.5 million to Rs25 million, and lowered the minimum age for applicants from 21 years to 18 years. The decision was announced at a review meeting chaired by the Prime Minister in Islamabad on Sunday 8 November 2026, according to the Prime Minister's Office statement carried by Radio Pakistan. The loans are repayable in easy instalments, and the higher ceiling applies to both the business and agriculture tracks.

Rs292 billion set aside, 266,700 young people to benefit

The government has allocated Rs292 billion for the youth loan schemes in the financial year 2026-27, and an estimated 266,700 young people are expected to benefit. Thirty percent of the loans are reserved for women. The Prime Minister directed the Small and Medium Enterprises Development Authority (SMEDA) to provide comprehensive support to applicants, so young borrowers get help with the process and not just the money.

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What is not yet announced

Two practical details are still missing. First, the interest terms for loans above the old Rs7.5 million ceiling have not been announced, and the State Bank had not notified revised terms as of 10 November 2026, so no rate is stated here for the higher band. Second, the date from which banks and the official portal start applying the Rs25 million limit and the age of 18 has not been confirmed, so applicants should check the official portal for the revised terms before applying. The upper age limit under the revised scheme is also unconfirmed, so no upper age is stated here.

Who the scheme is for

The scheme targets individuals, not companies, who want to start or expand a business or an agriculture venture. With the age floor now at 18, young people finishing secondary education or entering vocational training can apply for larger sums. The women's quota and the SMEDA support are aimed at widening access beyond the borrowers who already know how to work the banking system.

Frequently asked questions

What is the new maximum youth loan in Pakistan? The maximum individual loan under the Prime Minister's Youth Business and Agriculture Loan Schemes has been raised from Rs7.5 million to Rs25 million.

At what age can a young person now apply? The minimum age has been lowered from 21 years to 18 years.

How many young people will benefit? The government estimates about 266,700 young people will benefit in the financial year 2026-27, from an allocation of Rs292 billion.

What share of loans is reserved for women? Thirty percent of the loans are reserved for women.

When can I apply for the Rs25 million loan? The revised terms have not yet been notified by the State Bank as of 10 November 2026, so check the official portal for the date the new limit and age take effect.

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Sources: Prime Minister's Office statement via Radio Pakistan, 8 November 2026; Business Recorder; Bloom Pakistan; The Express Tribune; Dawn; Arab News PK.