Govt launches soft loan scheme for overseas workers, laptop financing

The federal government has introduced a financial assistance initiative under the Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB&ALS) to support prospective overseas workers and young professionals. 

The initiative offers loans of up to Rs1 million for individuals seeking employment abroad to cover training, travel, and visa-related expenses. Additionally, students, freelancers, and young entrepreneurs can avail loans of up to Rs450,000 for purchasing laptops to enhance their digital skills and business ventures.

The State Bank of Pakistan (SBP) stated that this expansion of the loan scheme aims to make financing more accessible to individuals seeking international employment opportunities or digital business growth. 

Under the new Tier-4 category, banks will provide loans with a tenor of up to five years, where the government will subsidize the interest rate to zero percent for end users. Borrowers will be required to contribute 20 percent equity, while banks will finance the remaining 80 percent at KIBOR+3.

Eligibility for the overseas workers’ loan is limited to Pakistani citizens aged between 21 and 45 years with a valid job offer or recruitment through an Overseas Employment Promoter (OEP). Job offers must be verified by Pakistan’s overseas missions or relevant authorities. Applicants must also present details of overseas training and employment to justify the loan’s utilization.

The laptop financing program is open to students enrolled in Higher Education Commission (HEC)-recognized institutions, as well as freelancers and young entrepreneurs aged 18 to 30. 

Universities will partner with banks to facilitate laptop procurement, with repayments added to students’ tuition fees and collected by designated banks. Freelancers and entrepreneurs must submit a business plan outlining how the laptop will contribute to their work and revenue generation.

Loan amounts for laptops are categorized based on specifications: Rs150,000 for basic models, Rs300,000 for medium-range devices, and Rs450,000 for advanced laptops, with a repayment period of four years. The loans will require a personal guarantee from a family member, and universities may hold students’ degrees as collateral until loan repayments are completed.

For overseas employment financing, the loan can be jointly booked in the name of the borrower and a family member residing in Pakistan. The government will provide a 25 percent risk guarantee on the disbursed loan portfolio, while all commercial and Islamic banks will facilitate financing under the scheme.