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Micro Interest Free Qarz-e-Hasna Loans Scheme Starts by Prime Minster

Micro Interest Free Qarz-e-Hasna Loans Scheme Starts by Prime Minster 

Micro Interest Free Qarz-e-Hasna Loans


Qarz-e-Hasna loans are free of interest. These are small loans for the unemployed youth of Pakistan. Small businesses can be started by getting this loan from PM Youth Program.

The details of the Interest Free Loans are:

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.


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