The Government of Khyber Pakhtunkhwa has taken a strong step to reduce unemployment and support entrepreneurship by launching the Ehsaas Naujawan Interest-Free Loan Program. This program helps young people who want to start or grow their businesses by offering easy and interest-free loans. The aim is to provide financial help to the youth so they can become self-employed and build a better future.
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Under this scheme, youth between the ages of 18 to 40 years can apply for loans ranging from PKR 100,000 to PKR 5 million. The loans are given in two categories: Small Business Loans and Large Business Loans. The repayment period is from 3 to 8 years, which makes it easy for the borrower to pay back in comfortable monthly installments. The scheme gives equal opportunities to all including women, disabled persons, madrasa students, and minorities.
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Small Business Loans through Akhuwat
The small loans range between PKR 100,000 and PKR 500,000 and are best for those who want to start a small shop, service business, or online store. These loans are provided by Akhuwat Islamic Microfinance. There is no interest and no need for any guarantee. The total repayment time is 3 to 5 years, and payments are made in equal monthly installments. Young people from 18 to 40 years are eligible for this type of loan. The total budget for this scheme is PKR 2 billion, which will benefit thousands of small business owners across the province.
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Large Business Loans via Bank of Khyber
For bigger business ideas, large loans from PKR 1 million to PKR 5 million are offered. These loans are given by the Bank of Khyber, and there is no interest charged on them either. To apply for this loan, a group of 3 to 5 people must form a legal partnership. The repayment time is up to 8 years, and there is a 20-month grace period during which the applicant does not need to pay anything. This option is best for those who have a solid and scalable business idea. The age limit for this loan type is 18 to 35 years, and the government has allocated PKR 1 billion for this category.
Eligibility Criteria for Ehsaas Naujawan Interest-Free Loans
To apply for the Ehsaas Naujawan Loan Program, the person must be a permanent resident of Khyber Pakhtunkhwa or its merged tribal districts. A valid CNIC is required. For small loans, the age should be between 18 and 40, while for large loans, the range is 18 to 35. A clear business plan is a must for both categories. People with business skills or experience will be given preference. A clean credit history is necessary, and the program does not support harmful businesses like arms or alcohol.
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Application Process for Small and Large Loans
For Small Loans (Akhuwat):
Visit your nearest Akhuwat branch. Fill out the form, attach a valid CNIC, proof of address, and a business plan. After the form is reviewed and approved, you will receive the loan.
For Large Loans (Bank of Khyber):
Apply online through the Ehsaas Naujawan portal or visit the Bank of Khyber branch. Submit all documents including your CNIC, business plan, and partnership details. After the bank reviews your plan, you will get the result within 2 to 4 weeks.
Special Inclusion Features
This program makes sure that no one is left behind. Women entrepreneurs are strongly encouraged to apply. The program also supports religious minorities, disabled persons, and madrasa graduates. Reserved quotas are available to ensure that people from all backgrounds can benefit and contribute to the economic growth of the region.
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Final Thoughts
The Ehsaas Naujawan Interest-Free Loan Program is a golden opportunity for the youth of Khyber Pakhtunkhwa. It gives them the financial push they need to become business owners without the burden of interest or heavy terms. With fair policies, easy installments, and support for all communities, this program is building a strong base for a better and more prosperous future in Pakistan.
FAQs
Can I apply for both types of loans?
No, you can only apply for one type based on your business plan and age.
What if my application is rejected?
You will be informed. You can improve your plan and reapply.
Do I need to have an existing business to apply?
No, a new business idea with a clear plan is also accepted.
Are training programs available with this scheme?
Yes, some branches offer business plan training to help applicants.
Is there any guarantee or interest involved?
No, all loans are interest-free and no guarantee is required for small loans.