Finding a loan, whether it’s an auto loan, student loan, mortgage, or any other type of loan can be extremely stressful and tiresome if you don’t know where to look.
In this article, we’ll outline 10 easy ways to get a loan in Pakistan, providing you with tips and resources to help simplify the process and increase your chances of securing the funds you need.
Before starting our guide, here is a brief overview of the methods or ways that we are going to highlight in our guide!
| Method | Description | Pros | Cons | Tips |
|---|---|---|---|---|
| Family Sources | Borrowing money from family members with the possibility of low or no interest. | Low/No interest, Flexible terms | Potential for personal conflicts, Limited amount of money | Document the process, Set clear terms |
| Borrowing From Friends | Getting a loan from friends who trust you and might act as co-signers for formal loans. | Trust-based, May have flexible terms | Potential strain on friendships, May require co-signers with good credit | Choose reliable friends, Discuss repayment terms clearly |
| Government Sources | Utilizing government programs and schemes for loans, especially for small businesses and entrepreneurship. | Often low interest, Various programs available | Access to necessary transportation Can use collateral | Research available schemes, Prepare necessary documentation |
| Bank Loans | Applying for personal or business loans from banks with varying requirements based on credit scores and collateral. | Access to larger amounts, Various loan products available | Requires good credit history, May need collateral | Prepare a strong application, Compare offers from different banks |
| Gold Loan | Borrowing money by using gold as collateral, often with no interest or very low interest rates. | Quick processing, No credit check needed | Risk of losing gold if unable to repay, Interest rates can vary | Choose a reliable lender, Keep gold in good condition |
| Private Lenders | Securing loans from private lenders who might have less stringent requirements than banks but higher interest rates. | Easier qualification, Fast approval | Higher interest rates, Risk of unethical practices | Verify lender credentials, Read terms carefully |
| Auto Loan | Financing for purchasing vehicles through car dealerships or banks, often requiring collateral. | Access to necessary transportation, Can use collateral | High interest rates, Hidden fees | Compare dealership and bank offers, Understand all fees |
| Home Finance | Loans specifically for purchasing or renovating homes, available from banks and finance companies. | Large loan amounts available, Flexible repayment terms | Requires good credit, May need collateral | Apply online for convenience, Speak with a loan specialist |
| Payday Loan | Short-term, high-interest loans meant to cover immediate cash needs, typically due on the next payday. | Fast access to cash, Less stringent requirements | Very high interest rates, Short repayment period | Understand terms fully, Prefer installment loans |
| Credit Cards | Using credit cards for short-term loans, taking advantage of rewards programs, and convenient repayment options. | Convenience, Rewards programs | High interest rates, Risk of accruing debt quickly | Use for short-term needs, Pay off balances promptly |
| Crowdfunding (Bonus Tip) | Raising funds through national and international crowdfunding platforms by pitching business or personal needs to a broad audience. | Access to a large pool of funders, No repayment if goal isn’t met (Kickstarter) | Requires compelling pitch, No guarantee of funding success | Create a strong campaign, Engage with potential backers |
Having said that, let’s explore these options in detail.
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Easy Ways To Get A Loan In Pakistan Online | Urgent Loan Without Interest
If you’re looking for some Easy Ways To Get A Loan In Pakistan, there are several options available to you. Here are 10 easy ways to get a loan in Pakistan:
Table Of Contents
- Easy Ways To Get A Loan In Pakistan Online | Urgent Loan Without Interest
Family Sources
Easy Ways To Get A Loan In Pakistan: Of course, your parents and other family members are always an option for funding. Getting a loan from family sources is one of the easy ways to get a loan in Pakistan.
You can ask them for money/loan at reasonable profit/interest—especially if you offer them some sort of guarantee on their investment.
Additionally, the family can help introduce you to investors and other people who might be able to help you find funding.
However, it’s important not to completely rely on your family as they may not have enough money and might be biased when making investments.
Tips While Lending Money from Family Members
- While lending money from family members the whole process should be documented in the presence of some witnesses to avoid confusion and mistrust.
- Interest rate, repayment tenure, and how the money would be used and repaid all the details must also be in written form.
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Borrowing From Friends
Easy Ways To Get A Loan In Pakistan: Borrowing from friends is always a is one of the easy ways to get a loan in Pakistan. The first place you should look for loans is your network of friends and family.
Start by asking people you trust if they would be willing to act as a co-signer for your loan.
Some banks will require that both parties have good credit scores; if so, consider getting your co-signers to score checked before going through with it.
Other institutions might not mind so much, but ask anyway; even if you can get away with having poor credit on one end of your application, things could go poorly, if either party has issues later on down the line.
Government Sources
Easy Ways To Get A Loan In Pakistan: The government is an obvious place to start, but people often think it’s only for large businesses or real estate.
But there are plenty of grants and loans available from local, state, and federal programs—you just have to look for them.
There are Small Business Development Centers in every country at national levels that offer free advice on everything from marketing plans and financials to writing business plans.
All kinds of funding are available; you just have to ask. Surely funding from government sources is one of the easy ways to get a loan in Pakistan.
Top 7 Government Sources To Get A Loan In Pakistan
Easy Ways To Get A Loan In Pakistan: Here are the top 7 government sources to get a loan in Pakistan, presented in point form:
- State Bank of Pakistan: The State Bank of Pakistan offers several loan schemes for small and medium-sized enterprises, including the Refinance Scheme for Modernization of SMEs and the Long-Term Financing Facility.
- National Bank of Pakistan: The National Bank of Pakistan offers several loan schemes for different sectors, including agriculture, industry, and small businesses. These schemes include the National Bank First Small Business Finance Scheme and the National Bank Agriculture Financing Scheme.
- Small and Medium Enterprise Development Authority (SMEDA): SMEDA is a government agency that provides business development services and support to small and medium-sized enterprises. It also offers various loan schemes for SMEs, including the Prime Minister’s Youth Business Loan Scheme and the Women Entrepreneurs’ Loan Scheme.
- Pakistan Poverty Alleviation Fund (PPAF): PPAF is a government organization that provides microfinance loans to individuals and groups in rural and urban areas. These loans are designed to help people start small businesses and improve their livelihoods.
- Pakistan Industrial Credit and Investment Corporation (PICIC): PICIC is a government-owned development finance institution that provides long-term financing for industrial projects. It offers several loan schemes, including the Islamic Development Bank’s SME Line of Financing and the Export Finance Scheme.
- Export-Import Bank of Pakistan (EXIM): EXIM is a government-owned bank that provides financing and credit insurance to exporters. It offers several loan schemes, including the Export Finance Scheme and the Long-Term Financing Facility for Export-Oriented Projects.
- National Rural Support Programme (NRSP): NRSP is a non-governmental organization that works to alleviate poverty in rural areas of Pakistan. It provides microfinance loans to individuals and groups, including farmers, artisans, and small business owners.
Bank Loans
Easy Ways To Get A Loan In Pakistan: You can also apply for a bank loan, which may take longer to secure. If you have sufficient savings and/or liquid assets (property, cash, etc.) you may be able to get loans from banks or other financial institutions.
Of course, you will need a good credit history to apply for these types of loans. However, if your credit is not too great then that does not mean that you cannot apply for a bank loan at all.
Different banks may have different requirements when it comes to applying for loans with low credit scores. You could also consider putting up some of your assets as collateral against your loan;
However, note that personal guarantees are often required along with collateral so remember that if/when you do approach your bank you should pre-plan all the options.
If you know how to get along with the application process and other details of the bank’s procedures, then it is one of the easy ways to get a loan in Pakistan.
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Top 5 Banks That Give Loans Easily In Pakistan
Easy Ways To Get A Loan In Pakistan: Here are the top 5 banks in Pakistan that offer easy personal or business loans:
- Habib Bank Limited (HBL): HBL is one of the largest banks in Pakistan and offers a wide range of loan products for personal and business needs. HBL’s personal loan products include the HBL PersonalLoan and HBL Cash Assist, while its business loan products include the HBL BusinessLoan and HBL Revolving Credit.
- Meezan Bank: Meezan Bank is the first and largest Islamic bank in Pakistan and offers a range of Shariah-compliant loan products for personal and business needs. Meezan Bank’s personal loan products include the Meezan Consumer Ease and Meezan CashLine, while its business loan products include the Meezan Islamic Business Installment Loan and Meezan Islamic Business Line of Finance.
- United Bank Limited (UBL): UBL is one of the largest banks in Pakistan and offers a range of loan products for personal and business needs. UBL’s personal loan products include the UBL CashLine and UBL Drive, while its business loan products include the UBL Business Partner and UBL Business Line.
- Allied Bank Limited (ABL): ABL is one of the oldest banks in Pakistan and offers a range of loan products for personal and business needs. ABL’s loan products include Allied Cash Finance and Allied Express, while its business loan products include Allied Business Finance and Allied Running Finance.
- Standard Chartered Bank: Standard Chartered Bank is an international bank that operates in Pakistan and offers a range of loan products for personal and business needs. Standard Chartered’s personal loan products include the Standard Chartered Personal Loan and Standard Chartered CashOne, while its business loan products include the Standard Chartered Business Installment Loan and Standard Chartered Business Revolving Credit.
Gold Loan
Easy Ways To Get A Loan In Pakistan: Gold is a universal currency and getting a gold loan is one of the easy ways to get a loan in Pakistan.
If you have bad credit, finding a loan can be nearly impossible. But there are ways to get loans with bad credit that might surprise you like a gold loan.
This is borrowing from yourself by opening up a Gold Loan account. Gold Loans are one of the easiest methods for those with bad credit because it’s an easy way to borrow money without having any collateral.
This type of loan usually has no interest and borrowers only need enough cash on hand for the account to become active (usually 5,000 PKR).
Tips To Get Gold Loan Easily In Pakistan
Easy Ways To Get A Loan In Pakistan: Here are some tips to get a gold loan that is one of the easy ways to get a loan in Pakistan:
- Choose a reliable lender: It is important to choose a reliable and trustworthy lender when applying for a gold loan. Look for lenders who are licensed and regulated by the State Bank of Pakistan or other relevant authorities.
- Evaluate the loan amount: Before applying for a gold loan, evaluate the amount of loan you require based on the value of your gold. Most lenders offer loan amounts up to 70% to 80% of the gold’s value.
- Keep your gold in good condition: Ensure that your gold is in good condition before applying for a gold loan. Lenders may reject your loan application if your gold is damaged or of low quality.
- Keep your documentation ready: Keep all the required documents ready before applying for a gold loan. This includes your identity proof, address proof, and gold ownership proof.
- Check the interest rate and repayment terms: Check the interest rate and repayment terms offered by different lenders before applying for a gold loan. Choose a lender who offers competitive interest rates and flexible repayment terms.
- Apply online: Most lenders offer online gold loan applications, which can save you time and effort. Ensure that you provide accurate information and submit all the required documents to expedite the loan approval process.
- Monitor the loan repayment: Ensure that you make timely loan repayments to avoid default and penalties. Some lenders offer flexible repayment options, such as partial payments and prepayments, which can help you manage your loan better.
Private Lenders
Easy Ways To Get A Loan In Pakistan: A private lending option is surely one of the is one of the easy ways to get a loan in Pakistan. Private lenders often have less rigid requirements than banks and other lenders, meaning it may be easier to qualify for a small business loan from them.
The downside? Interest rates are typically higher than what you’ll find at your local bank. Still, if you’re looking for money fast, these loans can help you close sales faster.
Just remember that your cash flow will suffer—at least until you pay back the loan.
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Auto Loan
Easy Ways To Get A Loan In Pakistan: One of the easy ways to get a loan in Pakistan is auto loans. Many car dealerships offer easy financing, especially if you buy through them.
This sounds great, right? Well, it is, but there’s a catch. You have to buy a new car. The bad news is that they often have hidden fees and many charge interest rates of over 20 percent!
Although getting approved for an auto loan can be intimidating if you have no credit history and/or very little savings, securing one doesn’t need to be difficult.
Most banks offer secured loans that take advantage of things like your house, savings, or investment accounts as collateral—and some will even consider renting real estate as proof of funds.
Make sure you go over everything with your bank before signing any documents so you don’t end up paying too much on your loan.
Home Finance
Easy Ways To Get A Loan In Pakistan: Home Finance is one of the easy ways to get a loan in Pakistan, especially if you have bad credit. They offer loans from 10 Lakhs to 80 Lakhs and even have the option for unsecured loans.
Home Finance offers flexible terms so you can pay off your loan as quickly or as slowly as you want. There are no prepayment penalties or extra fees if you decide not to take out the whole loan amount.
- Apply Online
- Speak With A Loan Specialist
- Fill Out The Application Form And Submit It To The Lender
- Review Your Application And Sign Documents For Approval.
Payday Loan
Easy Ways To Get A Loan In Pakistan: One of the lesser-known and applied ways to get financial help is through payday loans. These are some of the easy ways to get a loan in Pakistan and my personal favorite.
of Payday loans are short-term loans, having high interest rates, usually a small amount of cash, and as their name depicts, usually due on your next payday.
Though their rates can be higher than what you’d pay with a credit card, they have less stringent requirements and can generally be obtained quickly.
Just be sure that you read all of your contracts thoroughly so that you fully understand the terms and conditions of your loan.
Finally, if possible try and get an installment loan instead of a payday loan as they will have better interest rates and much lower fees and they are surely one of the easy ways to get a loan in Pakistan.
Credit Cards
Easy Ways To Get A Loan In Pakistan: If you’re looking for easy ways to get a loan in Pakistan, it may be tempting to run out and apply for a loan by using one of your credit cards.
Although credit cards tend to have high interest rates, they often require much less or no paperwork than other loan types. In addition, some have rewards programs that can save you money over time.
For example, cashback or points may give you extra money that goes toward your balance.
Just be sure not to take on more debt than you can handle—the point of these options is convenience, not recklessness!
Crowd Funding (Bonus Tip)
Easy Ways To Get A Loan In Pakistan: One of the easy ways to get a loan in Pakistan is through crowdfunding by using national and international crowdfunding platforms.
Crowdfunding sites like Kickstarter and Indiegogo allow anyone to post their idea and try to raise funds from those who want in on it. The downside is that if the idea doesn’t meet its funding goal, the person posting it gets nothing.
However, with Kickstarter, there’s an all-or-nothing model where you get everything pledged no matter what if you reach your goal; and with Indiegogo, you get whatever money was pledged–even if that’s less than your goal.
Easy Ways To Get A Loan In Pakistan Pros And Cons
Pros:
- Access to funds: The biggest advantage of getting a loan is that it provides you access to funds that you may not have otherwise. This can be useful in times of financial emergency or for meeting your personal or business needs.
- Easy repayment options: Most lenders offer easy repayment options, such as EMI or monthly installments, which can help you manage your finances better.
- Improved credit score: Timely repayment of your loan can help improve your credit score, which can be useful in getting future loans or credit cards.
- Competitive interest rates: With a competitive loan market, borrowers can benefit from attractive interest rates offered by various lenders.
- Wide range of loan options: There are various types of loan products available in Pakistan, ranging from personal loans to business loans, allowing borrowers to choose the best option to meet their specific needs.
Cons:
- Debt burden: Taking a loan means taking on a debt burden that needs to be repaid with interest. If the loan amount and interest rate are high, it can lead to a significant financial burden.
- Risk of default: Failure to repay the loan on time can result in penalties, legal action, and a negative impact on your credit score, making it difficult to get future loans or credit.
- Hidden charges: Some lenders may have hidden charges, such as processing fees or prepayment charges, which can add to the overall cost of the loan.
- Collateral requirement: Some types of loans, such as secured loans, may require collateral, such as property or gold, which can put your assets at risk if you are unable to repay the loan.
- Unregulated lenders: Some unregulated lenders in Pakistan may offer high-interest rates or engage in unethical practices, making it important to do proper research before choosing a lender.
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Easy Ways To Get A Loan In Pakistan | FAQs
What is Payday Loan?
A payday loan as the name suggests is a short-term, small amount of money you get from a lender (employers, etc.) to pay back on the day of the “Next Payday” the day you get your next pay.
what are the Best Crowd Funding Platforms?
Kickstarter and Indiegogo are considered the best crowdfunding platforms in the world.
How long does it take to get a loan in Pakistan?
The time it takes to get a loan in Pakistan can vary depending on the lender and type of loan. Some lenders can provide funds within a few days, while others may take several weeks.
What interest rates can I expect for loans in Pakistan?
Interest rates for loans in Pakistan can vary depending on the lender and type of loan.
Generally, personal loans and microfinance loans have higher interest rates than secured loans such as home or car loans.
It’s important to compare interest rates from different lenders before making a decision.
Can I get a loan in Pakistan with bad credit?
It can be more difficult to get a loan in Pakistan with bad credit, but it’s not impossible. Some lenders specialize in providing loans to people with poor credit, but these loans may have higher interest rates or require collateral.
How much can I borrow with a loan in Pakistan?
The amount you can borrow with a loan in Pakistan can vary depending on the lender and type of loan.
Generally, personal loans have lower borrowing limits than secured loans such as home or car loans. It’s important to check with the lender to find out their borrowing limits.
Top 3 easy ways to get a loan in Pakistan?
The top 3 easy ways to get a loan in Pakistan are:
Government loans: The government of Pakistan offers various loan schemes for small businesses and entrepreneurs, which are easy to apply for and have favorable terms.
Online lenders: Several online lenders in Pakistan offer quick and hassle-free loan approvals with minimal documentation requirements.
Banks: Most major banks in Pakistan offer personal and business loans with attractive interest rates and flexible repayment options, making it easy to get a loan for your financial needs.
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