# Pakistan Expands Youth Loan Scheme With Higher Limits and Lower Age Prime Minister Shehbaz Sharif increases loan caps to Rs25 million and lowers eligibility to 18. - **Source:** [Dawn](https://www.dawn.com) - **Published:** 2026-11-09 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/0b59476a-ef6d-40cf-bd9e-0e05551e0b4d ## Expanded Financial Support Prime Minister Shehbaz Sharif has significantly increased the personal loan limit for the Youth Business and Agriculture Loan schemes. The maximum loan amount has been raised from Rs7.5 million to Rs25 million. These funds are designed to be repaid in easy installments, facilitating greater access to capital for young entrepreneurs across the nation. ## Lowering Eligibility Barriers In a strategic move to encourage early entrepreneurship, the minimum age requirement for loan applicants has been reduced from 21 to 18 years. This policy change aims to integrate younger citizens into the business and agricultural sectors sooner. The initiative seeks to provide immediate opportunities for school leavers and young adults starting their careers. ## Targeted Gender Allocation The government has mandated that 30 percent of the total loan disbursements must be allocated specifically to women. This directive is intended to foster economic independence among female citizens and boost their active participation in various business activities. Officials believe this quota will help bridge the gender gap in the national entrepreneurial landscape. ## Substantial Annual Budget For the current fiscal year, the government has allocated a total of Rs292 billion for the disbursement of these youth-focused loans. This massive financial commitment underscores the administration's focus on youth empowerment. The funds are expected to support thousands of new business ventures and agricultural projects throughout the upcoming fiscal period. ## Historical Loan Performance Since January 2023, the scheme has successfully provided financial assistance to 581,341 young individuals, totaling approximately Rs313.9 billion in distributed loans. This track record demonstrates the program's reach and operational scale. The government continues to monitor these figures to ensure that the capital is effectively utilized for sustainable economic growth and development. ## Future Disbursement Projections Projections for the fiscal year 2026-27 indicate that Rs292 billion will be disbursed to an estimated 266,700 recipients. These figures highlight the ongoing demand for accessible credit among the youth population. The government remains focused on maintaining this momentum to ensure that financial resources reach those who need them the most nationwide. ## Institutional Support Mechanisms The Small and Medium Enterprises Development Authority has been tasked with providing comprehensive support to applicants. This includes essential business start-up guidance, professional consultancy, and technical assistance. By offering these non-financial services, the authority aims to increase the success rate of new businesses launched under the government's expanded loan scheme framework. ## Strategic Economic Impact By enhancing loan limits and lowering age barriers, the government aims to stimulate the agricultural sector and broader business activity. This policy shift reflects a broader strategy to leverage the youth demographic for national economic stability. The success of these measures will depend on the effective implementation and guidance provided to young borrowers. ## Sources covering this story - https://www.dawn.com/news/2043142/pm-raises-youth-loan-amount-lowers-minimum-age-limit — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._