The Government of Pakistan has expanded its flagship Prime Minister’s Youth Business & Agriculture Loan Scheme to include a new “Tier-4” category, offering interest-free loans for students, freelancers, and prospective overseas workers.
The initiative, announced via the State Bank of Pakistan’s circular, aims to empower youth by financing laptops and covering expenses for overseas employment.
Here’s a breakdown of how eligible candidates can apply for the loan:
- Laptop Loans:
In order to qualify for the laptop loan, the candidates must meet below mentioned conditions.
- Pakistani citizens aged 18–30 years.
- Enrolled in HEC-recognized institutions OR freelancers/young entrepreneurs with a viable business plan.
Loan Details:
The government of Pakistan will provide a loan of up to Rs 450,000 depending on the needs of the student or the freelancer, while the candidate has to repay the amount to the government in the next four years with 0 percent interest.
How It Works:
Universities will refer students to partner banks via the PMYP portal.
Loan installments will be added to tuition fees and automatically deducted by banks.
It is worth noting here that the universities will act as guarantors of the loan and have the authority to withhold the degree of the candidate until the loans are repaid.
On the other hand, a family member of the candidate also has to provide personal guarantees.
-
Overseas Workers’ Loans:
The applicant must fulfill the below-mentioned conditions to meet eligibility criteria.
- The applicant must be a citizen of Pakistan aged 21–45 years with a valid overseas job offer.
- Offers must be authenticated by Pakistan Missions abroad, Overseas Employment Promoters (OEPs), or Protector Offices.
Loan Details:
The authorities in Pakistan will provide a loan amount of up to Rs 1,000,000 which the applicant can be utilize for training, travel, visa, and settlement expenses.
Meanwhile, the candidate has to repay the amount to the government over the five year tenure with 0 interest rate.
This loan also required personal guarantees.
The government guarantees 25 percent of the loan portfolio to minimize bank risks.
Application Process:
The students should contact the University’s finance office to apply through the PMYP portal.
Freelancers/Overseas Workers: Submit business plans or job offer documents to participating banks (listed is published on the PMYP website).
All loans will be reported to the Credit Information Bureau (E-CIB) to ensure transparency.
Eligible candidates are urged to visit the PMYP portal (www.pmyp.gov.pk) or approach their nearest participating bank branch to initiate their applications.
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