Government of Pakistan, in collaboration with Pakistan Poverty Alleviation Fund (PPAF) and Partner Organizations (PO’s) has launched an Interest Free Loan scheme under which low income families whose Poverty score card up to 40 will be provided with interest free loans up to Rs.50, 000.There is a steering committee which is overviewing the whole Project. Under Prime Minister’s Interest Free Loan (PM-IFL) Scheme, a total amount of Rs. 3.5 billion has been provided to PPAF and PPAF has disbursed that fund to Partner Organizations. In this regard, Akhuwat Islamic Microfinance (AIM) has been selected as a Partner Organization by PPAF.

Major Objectives of the Project:

  • Making interest free loans available to poor, vulnerable and marginalized people on a scale 0-40 on Poverty Score Card.
  • Ensuring the loans are used for productive purpose to increase income of borrowers/households.
  • Allocating 50% loans to women for their inclusion in economic activities.
  • Encouraging behavioural change among beneficiaries of scheme.

Salient Features of Project:

  • Interest free loan facility is only for specific UC’s allocated as per NFC rules.
  • Maximum Loan size will be PKR. 50,000.
  • Loans will be provided to person having Poverty Score Card 0-40.
  • 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.

Eligibility Criteria:

  • Applicant having the proper business plan.
  • Applicant having Poverty Score Card up to 40.
  • Having age between 18- 60 years.
  • Applicant should have valid CNIC.
  • Applicant should be economically active.
  • Applicant should not be convicted of any criminal offence in lieu of which proceeding are in progress.
  • Applicant should have good social and moral character in his community.
  • Applicant should have capacity to provide two guarantors other than family members.

Progress Report (30th June 2019)

Total Benefiting Families 98,682
Total loans disbursed – Males 53,727
Total loans disbursed – Females 44,955
Amount Disbursed PKR 2,450,610,000
Percentage Recovery 99.98%
Active Loans 25,067