The government of Khyber Pakhtunkhwa has officially launched an interest-free loan scheme under the Ehsaas Naujawan Programme, aimed at empowering youth through entrepreneurship and sustainable business development. The scheme is open to applicants across all districts, including the merged tribal areas.
This initiative offers mark-up free term loans ranging from Rs. 1 million to Rs. 5 million per entity, based on the business potential and the applicant’s capabilities. The loan aims to support new and existing businesses, with a special focus on green initiatives like the e-rickshaw project, IT, services, and other emerging sectors.
To apply, interested individuals must form a registered business partnership consisting of 3 to 5 members. All members will be equally responsible for the loan’s use and repayment. The loan tenor is up to 8 years, with a maximum grace period of 20 months. Disbursement will be made in tranches upon completion of the required formalities.
Apply here: Ehsaas Naujawan Loan Program
Applicants must meet a 90:10 debt-to-equity ratio. For existing businesses, fixed assets or existing stock may be used as equity. For new startups, a bank deposit as cash equity is required. Security requirements include a personal guarantee from all partners and a corporate guarantee from the firm.
The scheme targets a wide range of sectors, including information technology, education, healthcare, biotechnology, agriculture (especially off-farm value chains), tourism, media, fitness, and green energy. Any legally viable and economically sustainable business plan is eligible for consideration.
Applications can be submitted through designated government offices or an online portal (to be announced). Required documents include CNICs of all partners, business registration certificates, business plans, and equity proof.
The Ehsaas Naujawan Programme also includes monitoring, guidance, and potential technical support for approved businesses to ensure sustainability and effective loan utilisation.
Read also: Implementation of Ehsaas Apna Ghar scheme begins in KP, loan disbursement underway
For updates and detailed application procedures, applicants are advised to visit the official websites of the Khyber Pakhtunkhwa government or Ehsaas Programme or contact local business facilitation centres.
