PRSP
Harnessing the People’s Potential to Help Themselves
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Interest Free Loans (IFL)

An agreement was signed on 17th November, 2014 between Pakistan Poverty Alleviation Fund (PPAF) and Punjab rural Support Programme (PRSP) for a period of 4 years in order to provide interest free loans to the poor people of rural areas of Muzaffargarh district under Prime Minister’s Interest Free Loan scheme. The main objective of this scheme is to provide interest free loans to the poor people so that they are given financial assistance but without the burden of interest. An amount of Rs.44 Million was approved by PPAF under this scheme including Rs.40 Million for on-lending to borrowers and Rs. 4 Million as operational costs. This amount will be provided in tranches as per Implementation Plan of PRSP and used as revolving fund for a period of 4 years.

Progress
  • Disubursement is being done through two loan centers in District Muzaffargarh.
  • 11,890 applications received for 9,794 cases appraised as of Jan 2021.
  • Credit Disbursement is Rs 209.138 millions through 10,212 loans (5,006 male 5,206 female) as of Jan 2021.
  • Recovery rate for the month of Jan 2021 100%. It was 55.41% in Dec 2020.
© 2021 PRSP, All rights reserved Last Updated On: Feb 20, 2021