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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. 257.25 million as 12,428 loans (6,189 male 6,239 female)
  • Recovery rate for the month of May-2022 98.81%.
IFL Mianwali & Bahawalpur
  • Loan centers/branches have been established both in Mianwali and Bahawalpur.
  • During the review month 558 loan applications were received (334 from males and 224 from females) in Mianwali. Poverty score cards of these applicants were prepared, and nine applications were rejected on account of their higher than permissible poverty score. A total of 532 loans (309 male and 223 female) worth of Rs. 18.50 million were extended during the review month. Cumuliative disbursement since inception of program is Rs. 80.04 million against the target of Rs. 85.93 million.)
  • During the review month 357 loan applications were received (94 from males and 263 from females) in Bahawalpur. Poverty score cards of these applicants were prepared, and thirty three applications were rejected on account of their higher than permissible poverty score. A total of 346 loans (90 male and 256 female) worth of Rs. 11.73 million were extended during the review month. Cumulative disbursement since inception of program is Rs. 80.01 million against the target of Rs 78.40 million.
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