This guide will explain how you can calculate your loan repayment schedule easily using the official calculator and understand your total payable amount, interest, and monthly or yearly installments.
I always try to share the latest updates and benefits related to the Prime Minister’s Youth Loan Scheme. Based on my experience and the questions I receive from many of you, I’ve gathered the most useful information here.
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Understanding the PM Youth Loan
The Prime Minister’s Youth Loan Program is designed to help people start or grow their businesses. Whether you’re taking a loan of Rs. 5 lakh, Rs. 15 lakh, or even Rs. 75 lakh, this program provides financial support with low markup rates.
However, before applying, it’s very important to understand how much installment you’ll need to pay and whether your business can manage those payments easily. Considering Pakistan’s current economic situation, business growth is challenging — so it’s wise to plan smartly and stay on the safe side.
How to Calculate Your Loan Installment
An official loan calculator is available online to help you calculate your installments. Using it, you can check how much you’ll need to repay monthly or yearly for any loan amount.
Installment Calculator — PM Loan Scheme
Up to Rs 5 lakh is interest‑free with repayment over 3 years (0% markup). You can optionally apply a 6‑month grace (no installments). For amounts above Rs 5 lakh or tenures beyond 3 years (up to 8 years), please enter the bank’s annual interest rate.
Results
- Loan amount: —
- Tenure: —
- Grace months: —
- Annual rate: —
- Monthly installment: —
- Total payable: —
- Total interest: —
Show amortization schedule
| # | Installment (Rs) | Principal (Rs) | Interest (Rs) | Remaining (Rs) |
|---|
Let’s go through an example step by step.
Example 1: Loan of Rs. 5 Lakh for 8 Years
- Loan Amount: Rs. 5,00,000
- Loan Tenure: 8 years
- Annual Interest Rate (Markup): 3%
When you use the calculator:
- The repayment schedule will show all installments, year by year.
- You’ll see that your first-year installment starts at around Rs. 85,865.
- As time passes, the interest (markup) amount will gradually decrease, since your outstanding principal reduces each year.
- The schedule also displays the total principal, total markup, and ending balance for each payment cycle.
To get a rough idea: Total Payment=58,865×96=5,63,000\text{Total Payment} = 58,865 \times 96 = 5,63,000Total Payment=58,865×96=5,63,000
So, approximately, you will return Rs. 5.63 lakh in total over 8 years.
Why This Difference?
The difference between the original loan amount and total repayment includes:
- Markup (interest) charged by the bank
- Service costs such as staff salaries, rent, and operational expenses
So, the total repayment is slightly higher than the borrowed amount.
Example 2: Loan of Rs. 10 Lakh for 3 Years
- Loan Amount: Rs. 10,00,000
- Loan Tenure: 3 years
- Installment (approximate): Rs. 14,000 per month
If you use the official calculator and enter Rs. 10 lakh with a 3-year repayment plan, the calculator will show your estimated monthly installment around Rs. 11,730–14,000, depending on your bank’s markup policy.
This gives you a clear idea of how easily you can manage repayment.
Practical Example
If you invest Rs. 10 lakh wisely — even in a small business like a vegetable market or daily trading — you can earn a steady income to cover your monthly installments and still save profit.
Many people think only large businesses are successful, but small ventures can also be very profitable if managed properly. Always focus on low-risk, consistent income sources when taking such loans.
Conclusion
The PM Youth Loan Program is a great opportunity for young entrepreneurs in Pakistan. But before applying:
- Use the official loan calculator to estimate your repayments.
- Choose a realistic amount based on your business capacity.
- Stay consistent in paying your installments.
This way, you can build your business confidently while maintaining a good financial record.
Tip: You can find the official PM Youth Loan Calculator link on the program’s website — just enter your loan amount, tenure, and interest rate to view your detailed repayment plan.