'Interest Free Loan' program is a Government of Pakistan's initiative that is being implemented through the Poverty Alleviation & Social Safety Division. The purpose of the initiative is to provide financial support to low-income households and individuals. Under the program, the Government of Pakistan is dispersing 80,000 interest free loans every month to small business owners to establish new businesses or expand their existing ones. The program is being implemented in more than 100 districts across Pakistan.

The main target of the program is skilled youth, women, persons with disabilities (PWDs), transgender persons and individuals whose households are beneficiaries of Benazir Income Support Program (BISP) or Zakat and Bait-ul-Maal. 50% of the loans under the program are provided to women.

In this article, we will explain the eligibility criteria, application process and the procedure to find a loan center near you for obtaining an ‘Interest Free Loan’

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The eligibility criteria for IFL program are as under,

  • The age of the applicant shall be between 18 to 60 years,
  • The PMT score of the family of applicant should be between 0-40 (in simple words, the family of the applicant is living in poverty as per BISP database),
  • The applicant must have a valid Computerized National Identity Card (CNIC) issued by NADRA.
  • The applicant should be resident of targeted union council of the district that is part of the program,
  • The applicant should have a workable business plan.

Note: If you do not know your PMT score, you can get information about it at a loan center near you.

Loan Size

The loan size under the ‘Interest Free Loan’ program ranges from 1,000 PKR to 75,000 PKR. The program does not provide loans above the 75,000 PKR limit.

Loan Centers

The interest free loan is being distributed through 22 partner organizations in rural areas, cities, and towns across the country. The information of districts, loan centers, names of partner organizations, focal persons and contact information can be found via the following links.

  1. Click Here for List of Loan Centers across Pakistan. 
  2. Click Here to Search a Loan Center near you.

Application Procedure

The application procedure for 'Interest Free Loan' is as below,

  • Find your nearest Loan Center and note down details of Focal Person & Loan Center (Search through your District or Tehsil or Union Council’s name in the Search Bar) using the this link.

  • Visit your Loan Center for further details.
  • If you qualify, the loan officer will fill your loan application form.
  • The concerned staff­ will visit your home/area to verify your details.
  • The loan officer will inform you if your application is approved.
  • If there is no objection the loan will be processed between 2-4 weeks.
  • The interest free loan cheque will be handed over to you at a scheduled time communicated to you by the loan officer.

Return of Loan

The loan obtained under the program should be returned in one year time.

  • You can return the amount in small installments every month, every three months, or six months,
  • You can also return the amount in one installment at any time in one year time.

Second Time Loan

You can obtain a second time loan from ‘Interest Free Loan’ program if you return the loan, you have taken the first time, within 1 year time period.

Further Information

You can visit the Pakistan Poverty Alleviation Fund (PPAF) website for additional information on Interest Free Loans here or call the following numbers,

  • 051-8439450 - 79
  • 051-111000102
  • 0300-5016957 

Ask Bolo

You can send us a message on  the Bolo Facebook page  or via the Bolo website chatbox to ask us about social safety programs including interest free loans, Benazir Income Support Program, Bait-ul-Maal and other initiatives of the Government of Pakistan.