The different kind of interest free Loan in Pakistan 2019 is in pipeline now. No doubt, interest-free loans are very helpful for the families who have no earning hand or source of investment to initiate a small business. It is helpful especially for widows, young boys, and girls who found no financial means to help them survive. A lot of microfinance institutions are also working to help those people but only a few provide this option. Private non-profit organizations operate on a small scale but under the Prime Minister Youth Scheme, more than 272,000 loans are disbursed till date including 62% women recipient, in 44 districts and 431 union councils with 99% recovery rate.
Those were all small loans with an average of about Pkr 22,500, which served the poor of poorer and help them change their lives.
Interest Free Loan in Pakistan 2019 for Students:
- These Interest-Free Loans are offered by the Prime Minister Youth Program, Akhuwat Foundation, Al-Khidmat Foundation, and few others. But, the process of all these programs is yet in pipeline.
Furthermore, these options bring the small loan of Pkr 25,000 to Pkr 50,000 for young boys and girls who are under 40 years of age.
For granting that loan collateral is demanded which normally valued more than the loan amount and may be submitted as a person’s guarantee. There are no further conditions to get a loan but one must not be under debt previously and must present a valid business idea to invest the amount taken. Small loans have a fabulous return rate of 99%, as mentioned by the Prime Minister Youth Program.
Features of Interest Free Loan in Pakistan:
- Small amount Pkr 25,000 to 50,000
- Awarded to youth aged below 40
- 50% loans are for women
- 99% return rate
Interest Free Loan in Pakistan for Business:
- Yet, only Zarai Taraqiati Bank has offered this type of loan for the farmer. Other then this, no other bank or platform has offered this kind of opportunity.
Most of the time, these Loans are available in Pakistan for business or studies. Loan for the study has been available since long in name of Qarz-e-Hasna but a loan for initiating small business is a new idea in the 21st century.
Previously, a lot of competent citizens remained handicapped due to lack of small capital to initiate own business, especially orphan and widow who previously remained dependent on others. Those loans provide them basic capital to start own business and live independently with dignity. Nothing more than collateral or a personal guarantee is required to get a loan with easy steps of processing.