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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.

IFL Muzaffargarh
  • Disbursement is being done through two loan centers in District Muzaffargarh
  • Since the inception of the programme in November 2014,  14,197 applications were received  and 12,073 case were appraised.
  • Cumulative Credit Disbursement since programme inception is Rs. 271.71 million as 13,087 loans (6,583 male 6,504 female)
  • Recovery rate for the month of July-2022 99%.
IFL Mianwali & Bahawalpur
  • Loan centers/branches have been established both in Mianwali and Bahawalpur.
  • During the review month 291 loan applications were received (139 from males and 152 from females) in Mianwali. Poverty score cards of these applicants were prepared, and twenty applications were rejected on account of their higher than permissible poverty score. A total of 271 loans (130 male and 141 female) worth of Rs. 9.47 million were extended during the review month. Cumuliative disbursement since inception of program is Rs. 110.67 million against the target of Rs. 105.05 million.)
  • During the review month 276 loan applications were received (79 from males and 197 from females) in Bahawalpur. Poverty score cards of these applicants were prepared, and sixteen applications were rejected on account of their higher than permissible poverty score. A total of 260 loans (72 male and 188 female) worth of Rs. 8.90 million were extended during the review month. Cumulative disbursement since inception of program is Rs. 106.21 million against the target of Rs 105.64 million.
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