Loans for students, prospective overseas workers announced

KARACHI: The government has expanded the Prime Minister’s Youth Business and Agriculture Loan Scheme, now offering loans of up to Rs1 million for prospective overseas workers. These loans are intended to cover training, travel, visa-related expenses and settlement costs.

Additionally, the government has announced loans of up to Rs0.45 million for students, freelancers and young entrepreneurs to purchase laptops, with the aim of supporting their education, digital skills and entrepreneurial activities.

The inclusion of funding to assist potential foreign workers is expected to increase remittances, according to analysts.According to a circular issued by the State Bank of Pakistan on Monday, a new tier (referred to as ‘Tier-4’) has been added to provide financing for laptops and support for prospective overseas workers.

Eligibility criteria stipulate that Pakistani citizens aged between 21 and 45 years, holding a CNIC, must have a valid job offer or be formally recruited by an Overseas Employment Promoter (OEP) to qualify for loans as prospective workers. Loan applicants will also need to provide documentation related to their overseas training, job offers, and similar details to justify the usage of the funds.

The loan type is term finance, and it has a maximum five-year term.For laptop financing, applicants must be Pakistani citizens aged between 18 and 30 years, currently enrolled in educational institutions recognised by the Higher Education Commission (HEC).

An MOU will be signed between universities and banks interested in offering laptop financing. For freelancers and young entrepreneurs seeking laptop loans, banks will require a business plan from the applicant, detailing how the laptop will be used productively and assessing the applicant’s ability to repay the loan.The loan type for laptop financing is also term finance, with a tenor of up to four years.