Want to start a small business or want to fulfill any urgent need? You need money urgently and don’t know where to get the necessary funds.
Well, you are at the right place! In this, article we will explore the top welfare organizations in Pakistan that can provide you with PKR 20,000 to 100,000 Interest-free loans urgently anywhere in Pakistan.
Our recommended list of welfare organizations and amount of interest-free loans they provide across Pakistan includes:
- Pakistan Poverty Alleviation Fund (PPAF)= Rs. 75,000-300,000 Interest-free loan
- Akhuwat Foundation= Rs. 20,000-150,000 Interest-free loan
- Alkhidmat Foundation= Rs. 50,000-100,000 Interest-free loan
- Kashaf Foundation= Rs. 40,000-100,000 Interest-free loan
We will answer the following questions in our guide:
- Who is eligible to get these loans?
- How to get maximum interest-free loans from these organizations?
- How to apply for and secure these loans?
- What are the terms and conditions for these loans?
- What is the repayment policy along with the duration of loans?
Now, let’s start our guide! Read our guide till the end so, you can get an interest-free loan without any inconvenience or rejection of application.
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How To Get An Interest-free Loan | PPAF Interest-Free Loan
Table of Contents
- How To Get An Interest-free Loan | PPAF Interest-Free Loan
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Alkhidmat Foundation
Alkhidmat Foundation is a well-known Welfare Organization in Pakistan that helps poor families. They have a special program called Mawakhat that gives interest-free loans to people who want to start businesses.
This program follows an Islamic idea called Qarze-e-Hasna, which means helping others without charging them interest or extra fees.
Alkhidmat Foundation‘s goal is not just to reduce poverty but also to promote a sense of unity and help one another in society by using this interest-free loan system to support people. It also offers a Scholarship Program.
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Loan Amount
We offer three different types of loans:
- Small Business Loan (Interest-Free) PKR 150,000: We give interest-free loans of PKR 150,000 to small businesses.
- Loan for Orphan’s Mother PKR 150,000: We provide a loan of PKR 150,000 to mothers who are taking care of orphans.
- Liberation Loan PKR 100,000: Our Liberation Loan program offers PKR 100,000 to people who want to free themselves from financial difficulties.
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Pakistan Poverty Alleviation Fund Loan
The Interest-Free Loan Program is a key component of the National Poverty Graduation Initiative, supported by the Pakistani Government.
This program, following PPAF’s strategy to uplift people from poverty, provides interest-free loans through loan centers to those in need.
Who Can Apply For Loan?
It operates in more than 100 districts in various regions of Pakistan, including:
- Punjab
- Sindh
- Balochistan
- Khyber Pakhtunkhwa
- Islamabad,
- Gilgit Baltistan
- Azad Jammu & Kashmir
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Loan Amount
PPAF, the Pakistan Poverty Alleviation Fund, offers interest-free loans in Pakistan ranging from Rs. 75,000 to 300,000. These loans come with zero interest, providing financial support without any additional charges.
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Features of Interest-Free Loan Programme
• Interest-free loans for small businesses.
• Funding comes from both Federal and Provincial Governments.
• The Federal Government allocated an additional Rs. 5 billion for FY 2019-20.
• Loans can be as high as Rs. 75,000, with an average loan size of Rs. 30,000.
• Half of the loans are reserved for women.
• Focus on including and supporting marginalized groups, especially skilled youth.
• Access to business advisory services and connections with microfinance institutions (MFIs), microfinance banks (MFBs), and regular banks.
• Distribution of 80,000 loans every month through 1,110 loan centers of PPAF Partners, including Akhuwat Organizations (POs) across the country.
Eligibility Criteria For Interest-Free Loan
To be eligible for this program, you should:
- Applicants are between 18 and 60 years old.
- Have a valid National Identity Card (CNIC).
- Come from households with a poverty score of 0-40 on the Poverty Score Card.
- Reside in the specific union council of your district that is being targeted.
- Have a financially workable business plan.
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Interest-Free Loan Application Process
Here are the application process is broken down into several steps:
- Initiating the Request: To start, you can visit a loan center and express your interest. You can do this by submitting a written request or by speaking with them in person.
- Verification of Poverty Score: The loan center will carefully review your poverty score to ensure you meet the eligibility criteria.
- Registration as a Potential Borrower: Once your eligibility is confirmed, you will be officially registered as a potential borrower within the program.
- Application and Business Plan Forms: At this stage, you’ll be provided with an application form and a business plan form.
- Document Submission: To complete your application, it’s necessary to submit all the required documents, including the completed application and business plan forms.
- Approval Process for Loan:
- 1. Loan Center Review: The loan center examines your application.
- 2. Loan Center Recommendation: They suggest what should happen next.
- 3. Submission to PO Head Office: Then, your case goes to the head office of the loan program for a final decision.
Where to Apply for Interest-Free Loans?
To apply for interest-free loans, you have multiple options:
- Rural Areas: You can apply through 22 Partner Organizations (POs) working with the Pakistan Poverty Alleviation Fund (PPAF).
- Urban Areas: In cities and towns, you can visit Akhuwat branch offices or loan centers.
These services are available in 100 districts across Pakistan. For more details, including information about specific districts, loan centers, implementing Partner Organizations (POs), and eligibility criteria, you can visit www.ppaf.org.pk/NPGI.html.
Who To Apply For PPAF Interest-Free Loan?
To apply for a PPAF Interest-Free Loan in Pakistan, follow these simple steps:
- Visit the Nearest PPAF Loan Center: Head to the closest PPAF loan center to get all the information you need.
- Gather Complete Details: While at the loan center, gather all the details about the loan application process.
- Check Eligibility: If you meet the eligibility criteria, the loan officer will assist you in filling out the application form.
- Home Verification: A loan officer may visit your home to verify the information you provided.
- Confirmation: The loan office will confirm whether your application is approved or not.
- No Objection: If there are no issues, the interest-free loan will be processed within 2-4 weeks.
- Loan Disbursement: You’ll receive your interest-free loan through a cheque handed over to you.
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Loan Center
This program covers a wide range of areas in Pakistan, operating in over 100 districts across different regions, including Punjab, Sindh, and Balochistan etc.
For further information, you have to download the complete list of PPAF Loan centers by clicking here https://www.ppaf.org.pk/doc/PPAF-Latest-Loan-Centers_REVISED.pdf.
Akhuwat Foundation
Akhuwat Foundation is a major charity organization in Pakistan that provides interest-free loans. These loans range from Rs. 20,000 to 150,000 and come with 0% interest, meaning there’s no extra cost to repay.
There’s just a small application fee of 200 rupees, and the loans have a minimum repayment duration of 2 years. It’s a great way to get financial support without worrying about high interest rates.
Loan Amount
We have different types of loans to suit your needs:
- Family Enterprise Loan: Applicant received from 10,000 to 50,000 loan without interest in Pakistan and paid it back over 10 to 36 months. The best part? No interest to worry about.
- Agricultural Loan: If you’re a farmer, we offer loans for your needs, from 10,000 to 50,000. Repay it in 4 to 8 months, and yes, no interest.
- Liberation Loan: Get financial help for various reasons. Loan amount between 10,000 to 100,000 and repay it in 10 to 36 months, and there’s no interest.
- Housing Loan: Invest in your home with a loan from 30,000 to 50,000. Repay it over 10 to 36 months with no interest.
- Marriage Loan: Planning a wedding? We offer loans from 10,000 to 50,000 with a fixed 2-year repayment plan, and, of course, no interest.
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How To Get an Akhuwat Foundation Loan?
Here’s a simple step-by-step process, on how to obtain an Akhuwat loan:
- Introduction Program: Learn about the Akhuwat loan program, its terms, and benefits.
- Application Submission: Fill out an application as a potential borrower, providing the necessary information.
- Social Appraisal By Staff: Akhuwat staff will assess your social background and economic situation to understand your needs.
- Business Appraisal By Staff: Akhuwat staff will evaluate your business or venture to determine the loan amount that suits your goals.
- Second Appraisal By Senior Staff: A senior staff member conducts a secondary assessment for a thorough review.
- Monitoring of The Borrow/Business: The progress of your business or venture is monitored to ensure your success.
- Recovery to be Received in Akhuwat office: Loan repayments are collected at the Akhuwat office as scheduled.
- Loan Disbursement to borrow in Mosque: Once approved, the loan amount is disbursed to you in a local mosque, as per Akhuwat’s process.
- Loan Approval Committee: A committee reviews your application to ensure it aligns with Akhuwat’s guidelines.
- Guarantors: Depending on the loan type, you may need guarantors to support your application.
Kashf Foundation
Kashf Foundation offers a loan called Kashf Karobar Karza. It’s for people who want to start a new business, expand an existing one, or women who want to reopen a business that’s been closed for at least three months.
This loan is also open to women who want to help their family members with their businesses.
Kashf Foundation Loan Amount
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Kashf Karobar Karza Loan Program:
Kashi Foundation’s main loan product is called Kashf Karobar Karza. Under this program, the applicant can receive a loan up to PKR 40,000 (First Loan Cycle) to PKR 100,000 (Upper Limit).
Here are details of the Kashf Karobar Karza Loan Program:
- Loan Product: Kashf Karobar Karza
- Loan Amount: Ranging from PKR 40,000 (First Loan Cycle) to an upper limit of PKR 100,000
- Term: 1 year (12 months)
- Installments: 12 equal monthly installments
- Documentation Fee: PKR 250 (Paid in Monthly Installments)
- Insurance Options:
- Plan A: PKR 1,850 with Maternity Coverage (Premium paid in Monthly Installments)
- Plan B: PKR 1,200 without Maternity Coverage (Premium paid in Monthly Installments)
Kashf Easy Loan Program:
Kashf Easy Loan (KEL) is a new loan designed for people who need a small amount of money quickly, whether it’s for emergencies or other needs.
It’s an easily accessible loan, providing PKR 15,000, especially for women with lower incomes. This loan helps those who require funds urgently. It comes with simple conditions and a short processing time.
- Term: One year
- Installments: 12 monthly installments
- Amount: PKR 15,000
- Insurance: Life insurance is available with this product to provide additional security.
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Kashf Mahweshi Karza Loan Scheme
In 2017, Kashf launched the Kashf Mahweshi Karza to aid female livestock managers in dairy and meat production.
It aims to build a strong value chain with credit, livestock insurance, and animal husbandry training. Tailored for rural women, a pilot branch in Adda Khui Wala near Harrapa started this project, with plans to expand to 9 more locations by June 2019.
- Purpose: To support dairy and meat production.
- Amount: Option 1: PKR 30,000 – 100,000; Option 2: PKR 100,001 – 150,000
- Use Funds for purchasing livestock animals.
- Term: Option 1: 12 months; Option 2: 18 months
- Repayment: Option 1: Equal monthly installments of capital and interest; Option 2: Bi-annual/annual.
- Insurance: Life insurance and livestock insurance are included.
- Training: Participants receive animal husbandry and financial literacy training. This initiative empowers female livestock managers in the dairy and meat sectors.
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FAQs | PPAF Interest-Free Loan
What is an interest-free loan?
An interest-free loan is a type of loan where the applicant is not required to pay any interest on the borrowed amount. It’s essentially a loan without the additional cost of interest.
Which are the Best organizations that give Interest-Free loans?
Here are the Best organizations who give Interest-Free loans:
Pakistan Poverty Alleviation Fund (PPAF)
Akhuwat Foundation
Alkhidmat Foundation
Kashaf Foundation
What is the maximum amount of interest-free loans provided by welfare organizations in Pakistan?
Following is the list of the Top 4 organizations in Pakistan along with the maximum interest-free loan provided by them.
Pakistan Poverty Alleviation Fund (PPAF)= Rs. 75,000-300,000 Interest-free loan
Akhuwat Foundation= Rs. 20,000-150,000 Interest-free loan
Alkhidmat Foundation= Rs. 50,000-100,000 Interest-free loan
Kashaf Foundation= Rs. 40,000-100,000 Interest-free loan
What are the eligibility criteria for PPAF interest-free loans?
To be eligible for this program, you should:
1. Be between 18 and 60 years old.
2. Come from households with a poverty score of 0-40 on the Poverty Score Card.
3. Have a valid National Identity Card (CNIC).
4. Reside in the specific union council of your district that is being targeted.
5. Have a financially workable business plan.
What programs offer PPAF in Pakistan?
PPAF provides interest-free loans, vocational training, and community development programs to help individuals and communities overcome poverty.
What other services and initiatives does the Akhuwat Foundation provide?
Akhuwat Foundation offers a range of services, including educational support, healthcare services, and community development programs.
What types of interest-free loans are offered by the Alkhidmat Foundation?
Alkhidmat Foundation provides various interest-free loans, including loans for small businesses, education, housing, and more.
How much loan can I get from PPAF?
PPAF, the Pakistan Poverty Alleviation Fund, offers interest-free loans ranging from Rs. 75,000 to 300,000. These loans come with zero interest, providing financial support without any additional charges.
What is the maximum loan amount available from the Akhuwat Foundation?
Akhuwat Foundation offers interest-free loans ranging from a minimum of 10,000 to a maximum amount is 150,000, depending on the specific loan program.
What are the loan amounts available through Kashaf Foundation’s loan programs?
Kashaf Foundation offers a variety of loan products, including business loans and educational loans. Loan amounts can range from a minimum to a maximum, with specifics depending on the program. For example, business loans may range from PKR 15,000 to a specified upper limit, while educational loans may have different limits.
How much can I borrow through Alkhidmat Foundation’s loan programs?
Alkhidmat Foundation provides a range of interest-free loans with different maximum loan amounts, including small business loans, educational loans, and more. Usually, it’s ranging from Rs. 50,000-100,000 Interest-free loan.
What are the eligibility criteria for obtaining interest-free loans?
Eligibility criteria applicants should be between 18 and 60 years old, come from households with a poverty score of 0-40, possess a valid National Identity Card (CNIC), reside in specific union councils, and have a financially viable business plan.
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