'Visa loans' to cash in on desperate job-seekers

Many job seekers from the sub-continent who dream of making a living in the Middle East often have to sell their assets or borrowing huge amounts to meet travel and visa expenses to pay agents involved.

Recruitment agents in the South Indian state of Kerala charge between Indian Rs75,000 and Rs150,000 (Dh15,000 approx) for a blue-collar job visa.

While the companies claim to bear all expenses including visa, immigration and air travel, potential candidates have to shell out quite a big amount for the service.

Cashing in on the helplessness of this unfortunate section of job seekers is a group of Non-Resident Indians (NRIs) who have floated a company to help them fulfil their dreams. 

The Pravasi Group of Companies - with about 500 NRI shareholders from the UAE, Bahrain and other Gulf nations - have announced an innovative scheme called 'Visa Loan' open to expatriates from Kerala.

The establishment of company follows numerous reports in the recent past about families from Andhra Pradesh, Tamil Nadu and Kerala being driven to poverty because one among them decided to seek employment abroad. They pay huge interest rates to local money lenders or sell their only property to land a job overseas.

Speaking to 'Emirates24|7' Shekharan, Chairman, Pravasi Group of Companies, from Trichur, Kerala said: “We have introduced the loan scheme for visa seekers to help the unemployed youth and their families. As the company is owned mainly by NRIs, our products and services are to help expatriates and their families back home. We have helped about 1,600 South Indian expatriates to pay for their visa expenses. Most of them have come to the UAE or other Middle Eastern countries and are repaying their loans.”

“Many of the visa loan customers are now working in these countries and earning a decent salary. They ensure a  better living standard to their families back home. Any unemployed youth or job seeker getting a job offer abroad will get our visa loan of Rs30,000 to Rs50,000. Decent companies pay for the employee expenses, but agents and subagents cause the visa cost to cross Rs100,000. We will verify the applicants original visa and two family members have to give a personal guarantee. The candidate needs an introduction from a well-respected community member like a Member of Panchayat or people of that gesture.”

Such a facility is useful to a very ordinary family because raising Rs50,000 within a short term is a difficult task and banks and finance companies don’t give any credit facilities for an overseas job seeker.

A banking source said banks keep away from visa loans be cause it is not legal to pay for visa expenses. “This seems to be a practical approach to help the job seekers, because banks cannot give such loans. Banks help finance overseas studies with subsidised student loans, but no loan is available to pay for a job visa,” the banking source said.

“Now we find it difficult to get good candidates for blue collar jobs from Kerala, because they are demanding more salary. Recruiting companies are now hunting people from North Indian States like Uttar Pradesh, Punjab and  Rajastan. Still there are recruitments going on from Kerala.”

Pravasi Group of Companies claims that it is formed under the Registrar of Companies with a Reserve Bank of India permission to conduct such schemes, a gold loan scheme, chit funds and other schemes, targeting the families of Gulf based expatriates. It manages funds worth Rs100 million and now wants to diversify into other areas of business targeting the expatriates.