Karachi, February 3, 2025 – The State Bank of Pakistan (SBP) has introduced significant updates to the Prime Minister’s Youth Business and Agriculture Loan Scheme to enable students from Higher Education Commission (HEC) recognized institutions to acquire laptops through financing.
The new measures aim to enhance access to digital tools, especially for students and young entrepreneurs, ensuring better educational and professional opportunities.
According to the SBP, the Government of Pakistan has expanded the scope of the scheme by introducing a new financing category termed ‘Tier-4.’ This new tier specifically focuses on providing financial support for students, freelancers, and young entrepreneurs seeking to purchase laptops, as well as for prospective overseas workers requiring funds for training, travel, and settlement expenses. The initiative is designed to support the digital and economic empowerment of the youth by facilitating technology access and aiding overseas employment opportunities.
Laptop Financing Under Tier-4
Under the revised scheme, students aged between 18 and 30 years who are enrolled in HEC-recognized institutions will be eligible to apply for laptop financing. Universities will collaborate with participating banks through the PM Youth Program (PMYP) portal, referring eligible students for financing. The process ensures that students can acquire laptops with convenient repayment plans, making digital learning more accessible.
The SBP has stated that under this financing structure, universities will integrate loan repayment installments into students’ tuition fees. These payments will be collected exclusively through the banks providing the loans. The participating banks will deduct their due amounts before remitting the remaining funds to the respective universities. This structured mechanism ensures financial security for lending institutions while simplifying the process for students.
Additionally, freelancers and young entrepreneurs who require laptops for professional use can also apply for financing. However, they must submit a business plan to demonstrate how the laptop will contribute to their productivity and repayment capacity. The SBP has also noted that banks may consider the joint income of primary and secondary borrowers when assessing repayment feasibility.
Financing Details
The scheme offers three financing tiers for laptops:
• Basic Laptops – Up to Rs. 150,000 or actual cost, whichever is lower.
• Medium Laptops – Up to Rs. 300,000 or actual cost, whichever is lower.
• Advanced Laptops – Up to Rs. 450,000 or actual cost, whichever is lower.
The loan will be provided as term finance with a repayment period of up to four years. Notably, the end-user rate for students has been set at 0%, ensuring that financing remains affordable.
Support for Prospective Overseas Workers
The SBP has also facilitated a loan program under Tier-4 for prospective overseas workers. Eligible applicants must be between 21 and 45 years old and hold a valid job offer or recruitment confirmation through an Overseas Employment Promoter (OEP). The financing can be utilized for training, travel, visa-related expenses, and initial settlement abroad.
Loans of up to Rs. 1,000,000 will be available for overseas employment purposes, with a five-year repayment period. Similar to the laptop financing initiative, these loans will be provided at an end-user rate of 0%, making them highly accessible.
Risk Mitigation & Security Measures
To mitigate financial risks, the SBP has introduced a 25% Guarantee on First Loss Basis for disbursed portfolios. For students availing of laptop financing, universities will be required to hold degrees as collateral until the final settlement of the loan. In contrast, prospective overseas workers must provide a personal guarantee from a family member. Banks may also issue joint loans in the names of both the applicant and their family member residing in Pakistan to enhance credit security.
Implementation and Execution
Participating commercial and Islamic banks will execute the scheme under SBP supervision. All loans will be recorded in the Electronic Credit Information Bureau (E-CIB) for transparency. Other terms and conditions of the PM Youth Business and Agriculture Loan Scheme remain unchanged.
The SBP emphasized that this initiative aligns with the government’s vision of promoting digital learning, youth entrepreneurship, and overseas employment. By providing students with easy access to laptops and financial support for young professionals, the SBP aims to drive socio-economic progress and digital inclusion across Pakistan.
The banking regulator encouraged students, freelancers, and overseas workers to take full advantage of the updated loan scheme and apply through the designated banks. Further details and application processes will be available through university portals and the PMYP platform.