KPK Youth Loan Scheme – Bank of Khyber Details (2025)
The KPK Youth Loan Scheme is an initiative by the Government of Khyber Pakhtunkhwa in collaboration with the Bank of Khyber (BOK). The program aims to provide easy access to financing for young entrepreneurs, small business owners, and farmers across the province. Designed to boost economic activity, create jobs, and promote entrepreneurship, the scheme is a key part of KPK’s efforts to support youth-led enterprises.
This article explains the scheme in detail, including eligibility criteria, loan features, application process, required documents, and benefits.
Overview of the KPK Youth Loan Scheme
The KPK youth business loan scheme provides affordable financing to help individuals start or expand businesses. The Bank of Khyber manages the loan disbursement process and offers both business and agriculture loans under this initiative.
- Managed by: Bank of Khyber (BOK)
- Target group: Youth, small business owners, women entrepreneurs, and farmers
- Loan type: Interest-free or low markup depending on category
- Repayment period: Flexible tenures up to 8 years
- Purpose: Business startup, expansion, or agriculture development
Key Features of the Bank of Khyber Youth Loan
- Interest-free loans for small amounts to support micro-businesses
- Low markup loans for medium and large-scale enterprises
- Financing available for both new and existing businesses
- Special quota for women entrepreneurs
- Dedicated loans for agriculture and livestock sector
- Online application system for easy access
Loan Categories and Markup Rates
The scheme is divided into tiers similar to the national PM Youth Loan Program.
| Loan Category | Loan Amount | Markup Rate | Repayment Period | Collateral |
|---|---|---|---|---|
| Tier 1 | Up to PKR 500,000 | 0% (Interest-free) | Up to 8 years | No |
| Tier 2 | PKR 500,001 – 2 million | 5% per annum | Up to 8 years | May require collateral |
| Tier 3 | PKR 2 million – 10 million | 7% per annum | Up to 8 years | Yes |
Eligibility Criteria
To qualify for the Bank of Khyber youth loan, applicants must meet the following requirements:
- Age: 21 to 45 years (18 years for IT or e-commerce businesses)
- Nationality: Must be a Pakistani citizen with a valid CNIC
- Residence: Permanent resident of Khyber Pakhtunkhwa
- Business Plan: A viable plan for starting or expanding a business
- Sector: Open to all sectors including services, manufacturing, trading, and agriculture
- Women entrepreneurs and differently-abled persons are given preference
Documents Required
Applicants must submit the following documents with their application:
- CNIC (Front and back scanned copy)
- Passport-size photograph
- Business plan or feasibility report
- Income proof (if available)
- Property/ownership documents (for collateral-based loans)
- Bank statement or financial records (for existing businesses)
- Utility bill for address verification
Application Process for KPK Youth Loan Scheme
Applying for the KPK youth loan through the Bank of Khyber is simple and can be done online or through branches.
Steps to Apply Online:
- Visit the official Bank of Khyber youth loan portal.
- Fill in the online application form with personal and business details.
- Upload scanned copies of required documents.
- Submit the application and note the tracking ID.
- Await verification and approval from the bank.
Steps to Apply via Branch:
- Visit the nearest Bank of Khyber branch.
- Request the KPK youth business loan application form.
- Fill in the details and attach all required documents.
- Submit to the loan officer for processing.
How to Track Loan Application Status
Applicants can easily perform a Khyber Bank loan status check online:
- Go to the official Bank of Khyber portal.
- Click on “Track Application”.
- Enter CNIC or application ID to view loan status.
Benefits of KPK Youth Loan Scheme
- Provides access to capital for young entrepreneurs
- Encourages self-employment and job creation
- Promotes agriculture and rural development
- Offers interest-free options for micro-businesses
- Supports women in business with dedicated quotas
- Strengthens KPK’s economic growth
Which Bank is Best for Youth Loans in KPK?
The Bank of Khyber is the primary bank for KPK youth loans due to its provincial focus and government support. Other banks like NBP and Bank Alfalah also offer youth financing, but BOK provides specialized products for KPK residents.
Agriculture Loan under KPK Youth Loan Scheme
The scheme includes dedicated financing for farmers and livestock businesses:
- Purchase of seeds, fertilizers, and machinery
- Livestock breeding and dairy farming
- Expansion of agricultural land
- Value-added agri-businesses
Women Entrepreneurship Loan in KPK
A portion of the KPK youth loan is reserved for women entrepreneurs to promote female-led businesses. These loans often come with relaxed collateral requirements and training support.
Table: Comparison of Youth Loan Programs in KPK
| Feature | KPK Youth Loan Scheme | PM Youth Loan Scheme | Punjab Rozgar Scheme |
|---|---|---|---|
| Managing Bank | Bank of Khyber | Multiple Banks | Bank of Punjab |
| Interest Rate Tier 1 | 0% | 0% | 0% |
| Maximum Loan Amount | PKR 10 million | PKR 7.5 million | PKR 10 million |
| Focus Area | KPK-specific | Nationwide | Punjab-specific |
| Agriculture Loan Option | Yes | Yes | Yes |
Frequently Asked Questions (FAQs)
Q1: Can non-KPK residents apply for the KPK youth loan scheme?
No. Only permanent residents of Khyber Pakhtunkhwa are eligible for this program.
Q2: Is collateral required for all loan amounts?
No. Loans under Tier 1 are interest-free and require no collateral. Higher amounts may require security.
Q3: How long does loan approval take?
Processing usually takes 30–45 working days after submission of a complete application.
Q4: Can women apply for the KPK youth loan scheme?
Yes. There is a special quota for women entrepreneurs under the Bank of Khyber loan scheme.
Q5: Does the scheme cover online businesses?
Yes. IT startups, e-commerce, and digital services are eligible under the program.
Final Thoughts
The KPK Youth Loan Scheme managed by the Bank of Khyber is a significant opportunity for young entrepreneurs and small business owners in the province. By offering interest-free and low markup loans, the program helps create sustainable businesses, encourages innovation, and promotes economic growth.
Applicants should prepare a solid business plan, gather all required documents, and apply through the official Bank of Khyber channels to maximize approval chances.
References
- Bank of Khyber Official Website
- Government of Khyber Pakhtunkhwa Finance Department – Youth Loan Initiatives
- Small and Medium Enterprise Development Authority (SMEDA) KPK
- State Bank of Pakistan – Youth Loan Program Guidelines
