How to Apply for the Ehsaas Naujawan Programme in Khyber Pakhtunkhwa: Rs 1 to 5 Million, Mark-up Free
Ehsaas Naujawan lends Rs 1 to 5 million mark-up free to KP firms of 3 to 5 partners aged 18 to 35, repaid over up to 8 years. See the rules and apply online.
The Ehsaas Naujawan Programme in Khyber Pakhtunkhwa lends Rs 1 million to Rs 5 million with no mark-up to a registered firm of 3 to 5 partners aged 18 to 35, repaid over up to 8 years, and you apply online at ehsaasnaujawan.bok.com.pk. It is a Government of Khyber Pakhtunkhwa scheme run through the Bank of Khyber. One person cannot apply alone.
Most interest-free schemes in Pakistan stop at a few lakh rupees. This one goes to Rs 5 million, which is why the conditions are stricter than a microloan. We read the Bank of Khyber's Ehsaas Naujawan Programme page on 19 October 2026, including its features, eligibility list and FAQ. Everything below comes from that page unless we say otherwise.
The loan is Rs 1 million to Rs 5 million per firm, mark-up free, over up to 8 years
The bank calls it a term loan, or demand finance, of Rs 1 million to Rs 5 million for each entity. The amount depends on the business potential and what the partners can show. There is no mark-up or service charge, and the tenure runs up to 8 years with a grace period of up to 20 months.
| Term | What the Bank of Khyber page says |
|---|---|
| Loan size | Rs 1 million to Rs 5 million per firm, company or partnership |
| Mark-up | None. The FAQ calls it a soft loan with no mark-up or other charges |
| Tenure | Up to 8 years, grace period up to 20 months |
| Disbursement | In tranches, after the required formalities are completed |
| Debt to equity | 90:10. Fixed assets or existing stock can count as equity |
| Security | Personal guarantee of all partners plus a corporate guarantee of the firm |
| Area | All districts of Khyber Pakhtunkhwa, including the merged districts |
The 90:10 ratio means the partners put in 10 per cent of the project themselves. For a new business, the page says that share must be cash deposited in an account. For a running business, machinery or stock already in use can be counted instead.
You need a registered firm of 3 to 5 partners, all aged 18 to 35 and resident in KP
The scheme does not lend to individuals. The FAQ answers "Can an individual entrepreneur apply?" with a plain no. Applicants form a company, partnership or association of persons with at least 3 and at most 5 partners, and every partner is responsible for using and repaying the loan.
The eligibility list on the page sets these conditions:
- Permanent resident of Khyber Pakhtunkhwa, including the merged districts, with a valid CNIC.
- Age 18 to 35.
- A potential start-up with a legal entity, or an existing business less than two years old with growth potential.
- A workable business idea tied to the partners' skills, with a verifiable and feasible business plan.
- The business must be located in Khyber Pakhtunkhwa and be a legal entity.
- A clean e-CIB record. An old loan that was repaid on time is acceptable if the new debt does not push the burden past the bank's limit.
- The business should be able to create more jobs.
Women entrepreneurs are encouraged to apply, and graduates or skilled people with a clear plan are named as the target. Siblings can be partners together, provided each one meets the criteria.
Government employees, defaulters and some trades are shut out
The page lists who cannot apply. Anyone applying alone is out. So is a loan defaulter, or anyone with a loan from a government or donor scheme or a bank that is more than 60 days overdue. Employees of any government, semi-government or autonomous body cannot apply, and the FAQ repeats this.
Bank of Khyber staff, whether permanent, contract or third party, and consultants engaged on the scheme are also excluded. Businesses on the Government of Pakistan's negative list, which the page says includes arms and ammunition, explosives, radioactive substances, security printing, alcoholic beverages and liquor, "will not be encouraged".
One firm gets one loan. If your partners already hold an Ehsaas Naujawan loan through another entity, check with the bank before you apply again, because the FAQ says one entity can take only one loan.
Any legal business qualifies, with IT, services, retail and manufacturing named first
The target sectors are broad: all sectors, with a special focus on IT, services, retail trading, manufacturing, businesses in enterprise clusters and start-ups. The page then lists examples it wants to see, from education and technology to tourism and green energy.
Named examples on the page are the education sector, technology and AI, healthcare and biotechnology, off-farm agricultural value chains, skin care clinics and fitness gyms, media, photography and entertainment, tourism, hotels and restaurants, green energy, and "any other skill-based micro and small-scale enterprising idea" or an existing business with a viable future. The FAQ adds that a team of professionals assesses each idea.
The definition of a small enterprise in the State Bank's Prudential Regulations for SE financing applies. In plain words, this is a small business loan, not a corporate one, so the plan should match that scale.
How to apply: build the firm first, then use the online portal
Applications go through the designated web portal, which the page links as ehsaasnaujawan.bok.com.pk. The FAQ gives no paper route. Form the partnership or company before you start, because the portal asks for the entity, not just the people.
- Pick 3 to 5 partners, all aged 18 to 35 with KP CNICs and clean credit histories.
- Register the firm, partnership or company so it is a legal entity based in Khyber Pakhtunkhwa.
- Write a business plan that the bank can verify, with the 10 per cent equity shown as cash or existing assets.
- Open the portal at ehsaasnaujawan.bok.com.pk and submit the application with the partners' details.
- Wait for the bank's assessment. Disbursement comes in tranches once the formalities are complete.
Repayment is in equal monthly instalments, which the FAQ spells out as EMI, after the grace period. We could not open the portal itself to list its fields, so expect it to ask for the partners' CNICs, the registration papers and the plan.
Compare it with the federal youth loan before you form a partnership
The Ehsaas Naujawan loan is bigger than most youth schemes but demands a group and a registered entity. A solo founder in KP has other routes. The PM Youth Business and Agriculture Loan Scheme lends to individuals through several banks, and the Bank of Khyber page lists it alongside this scheme.
For a smaller amount with fewer papers, an Akhuwat interest-free loan or the ZTBL Asan Qarza loan of Rs 500,000 may fit better. Neither needs 3 partners. The trade-off is the ceiling: those stop far below Rs 5 million.
Our view: the partnership rule is the real filter. Three friends who each want their own shop do not make a firm. A team that already shares one workshop or one software contract does, and that is who the scheme is built for.
Common questions
Is the Ehsaas Naujawan loan really interest free?
Yes. The Bank of Khyber page says there is no mark-up or service charge, and calls it a soft loan.
Can I apply alone for the Ehsaas Naujawan Programme?
No. The scheme lends only to a registered firm, company or partnership of 3 to 5 partners.
What is the age limit?
18 to 35 for the partners, and each must be a permanent resident of Khyber Pakhtunkhwa with a valid CNIC.
How long do I get to repay?
Up to 8 years, with a grace period of up to 20 months before equal monthly instalments start.
Can a government employee be one of the partners?
No. Employees of any government, semi-government or autonomous body cannot take financing under the scheme.
Where do I apply?
Online at ehsaasnaujawan.bok.com.pk, the portal linked from the Bank of Khyber's scheme page.
How we verified this
What we checked, where we read it, and what we could not confirm.
Last checked 19 October 2026. The loan size, mark-up, tenure, grace period, equity ratio, security, eligibility list, exclusions, sector list and the portal address all come from the Bank of Khyber's Ehsaas Naujawan Programme page at bok.com.pk, which we read on 19 October 2026. We could not open the application portal itself from our connection, so its form fields are not described here. The Bank of Khyber did not publish a closing date, a processing time or the number of loans made so far, and the Khyber Pakhtunkhwa government's own site did not answer when we tried it, so those points are unverified.
About the author
Global Affairs & Political Economy Writer
Muhammad Hatim is a book lover who started writing because he enjoys it. At Pakistan Era he writes about international relations, geopolitics and the global economy, with a particular interest in South Asia and the forces behind current events.
