Micro Interest Free Loans

qarz e hasna

Qarz-e-Hasana or the micro finance loan facility is aimed at helping the industry raise current access level of 2.5 million people to 5.0 million in the next 5 years. However, this scheme is for small bushiness like if some one wants to open a shop of tailoring, barber shop or for motorcycle mechanic shop, then this amount will be sufficient for him to have a start up of his/her business.

This PM Loan Scheme 2013 offers small loans to be disbursed among the youth in the fiscal year 2113-2014. So the youth of Pakistan may apply for this PM loan scheme and start small business with this Qarz-e-Hasna scheme.


The following detail is prepared  by the Prime Minister’s Office for the people of Pakistan and is as such provided to you so that one may get the actual picture of the whole scheme.

Eligibility criteria:

Vulnerable rural and urban poor with a poverty score of up to 40.

Focus on women:

It is believed that increased economic participation by women can play a significant role in national development. In an attempt to encourage the same, 50% of loans will be given to female borrowers. In addition, independent economic activity will empower Pakistani women both socially and in terms of finances.

Geographical spread:

The national outreach of the scheme would not be limited in geographic terms. However, preference would be given to limited and un-served areas. This is aimed at engaging the population of these areas in greater economic activity and strengthening the process of development there.


It is Qarz-e-Hasana or interest free loan. Therefore, no mark-up would be charged.

Size and number of loans:

250,000 loans of an average amount of Rs.25,000 would be disbursed as part of the scheme.

Government Grant 2013-14:

Rs.3.5 billion have been allocated to the scheme by the Federal Government.

Executing agency:

PPAF would be the central executing agency of the scheme. Enlisted partner organizations and community organizations that have necessary expertise and experience will be engaged in the process.

De-centralization in the process of execution implies greater transparency and increased efficiency.


To make the fund sustainable, borrowers will be encouraged to return the loan. The amount returned will be deposited to the permanent fund available to the community and be used for future lending.

In addition, the process will introduce the borrowers to conversion from being “takers” to “givers” that implies positive social and financial effects.

14 thoughts on “Micro Interest Free Loans

  1. Outstanding project. I appreciate for this programe. Due to this program the ratio of poverty reduces in our country.

  2. I am Adnan from Islamabad i need small business loan because i have just experience medical store of 7 year i open new pharmacy. I need 8 lac to start.

  3. this is very effective program for youth. unemployment is decreased by this. our economic condition is better. the poor peoples will get benefit from this. unskilled people having skills and get more chances to employment.

  4. I want a small fast food Restaurant. i have 10 year experience in motor way restaurant please i need one million rupees thanks

  5. It is very good step taken by PM , before applying a smeda report copy is required to attach with applying form, sir please guide me from where would SEMADA report available ?

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