The Govt. of Azad Kashmir through Azad Kashmir Small Industries Corporation (AKSIC) in collaboration with Akhuwat Islamic Microfinance (AIM) launched Interest Free Loan for Self Employment in AJ&K Scheme on April 2018. The purpose of this magnanimous venture is to promote small scale industries, employment opportunities, poverty alleviation and socio-economic uplift in Azad Jammu & Kashmir through provision of credit. of the state. The maximum limit of loan is up to Rs. 75,000. The scheme aims to bridge the gap between the poor and the privileged while establishing an equilibrium of harmony and brotherhood in the society.

Major Objectives of the Project:

  • To reach out to the low-income and economically active people in Azad Kashmir to support with interest free loans to earn their livelihoods.
  • Preservation and development of handicrafts and promotion of artisans.
  • To support start-up of small businesses, agriculture & livestock and existing businesses which need capital to grow further.
  • To protect the socio- economic of the target segment of the society through social inclusion.
  • To encourage self-employment.

Salient Features of Project:

  • First ever interest free loans project in state of Azad Jammu & Kashmir.
  • Maximum loan size will be PKR. 75,000.
  • Loans are given for businesses and setting small enterprise only.
  • Loans are disbursed in mosques/churches to ensure transparency and participation.
  • There is no mark-up or interest on these loans.
  • Loans are given after due scrutiny and appraisal according to an eligibility criterion, on first come first serve basis.
  • This is the largest interest free small loans scheme in state of Azad Jammu & Kashmir through public private partnership.

Eligibility Criteria:

  • Applicant should not be convicted of any criminal offence in lieu of which proceeding are in progress. However, nature and severity of the offense should be considered.
  • Applicant should be healthy and it shall be ascertained that the applicant is not suffering from any fatal disease.
  • Loans shall be sanctioned on first come first serve basis.
  • Akhuwat Islamic Microfinance shall follow graduation model in disbursement of loans.
  • Applicant should have valid CNIC.
  • Applicant should be economically active.
  • Applicant should be of maximum age of 62 years.
  • Applicant should have a good social and moral character in his community.
  • Applicant should not be willful defaulter of any other Microfinance institution.
  • Applicant should not have any active loan with Akhuwat Islamic Microfinance by himself or by any other family member who are being shared combined kitchen.

Progress Report (30th June 2019)



Total Benefiting Families


Total loans disbursed – Males


Total loans disbursed – Females


Amount Disbursed PKR


Percentage Recovery


Active Loans