How To Get An Interest-free Loan Online [20K-75K]

The Pakistan Poverty Alleviation Fund (PPAF) is a nonprofit organization that is working to alleviate poverty in Pakistan by providing interest-free loans and other support to low-income households.

The PPAF operates through a network of partner organizations, including non-governmental organizations, community-based organizations, and microfinance institutions.

Since its inception, the PPAF has played a vital role in reducing poverty in Pakistan, particularly in rural areas. It has provided support to over 110,000 community organizations and more than 35 million people.

ProgramFunds (Rs. Billion)Year of Approval & Initiation
National Poverty Graduation Initiative:13.002019-20
IFAD Funded PPAF Graduation Programme (Federal Govt.):6.302018-19
ADB Funded BISP Graduation Programme (Federal Govt.):23.35
Interest-Free Loans by Federal & Provincial Govts. of KP and Punjab:5.00Rs. 5 billion from Federal Govt. in 2019
Table: National-Poverty-Graduation-Initiatives-NPGI

Through its partner organizations, PPAF offers interest-free loans to help people start businesses, invest in education or healthcare, or engage in other income-generating activities.

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How To Get An Interest-free Loan Online | Interest-free Loan In Pakistan


Table of Contents

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What Is National Poverty Graduation Initiative (NPGI) Under PPAF

The National Poverty Graduation Initiative (NPGI) is a program under the Pakistan Poverty Alleviation Fund (PPAF) that aims to help low-income households graduate out of poverty through a combination of financial and non-financial services.

The NPGI targets households that are among the poorest of the poor, living below the poverty line, and unable to access traditional financial services. The NPGI provides interest-free loans, skills training, and other forms of support to help participants build their assets and income streams.

The program aims to help participants build their assets and increase their income to the point where they are able to sustain their livelihoods without the need for ongoing support from the program.

Key initiatives under NGPI are given in the following image:


PPAF Partner Organizations

The Pakistan Poverty Alleviation Fund (PPAF App) works with a network of partner organizations that includes non-governmental organizations, community-based organizations, and microfinance institutions.

Some of the key partner organizations of PPAF are:

Partner OrganizationContact PersonContact Number
Akhuwat Foundation (AF):Mr. Adnan Ahmed0332-4189349
Awami Development Organization (ADO):Mr. Abid Javed0332-6045404
CSC Empowerment & Inclusion Program (CEIP):Mr. Naveed Riaz0344-6618419
Farmers Development Organization (FDO):Mr. Muhammad Waqas Sahir0300-5740230
Ghazi Barotha Taraqiati Idara (GBTI):Mr. Wajid Akhtar0333-6872919
Health & Nutrition Development Society (HANDS):Mr. Asif Raza0334-5005519
Mojaz Foundation (MF):Mr. Inder Jeet Singh0336-7405060
National Rural Support Program (NRSP):Mr. Faisal Shahzad0301-8557543
Organization for Poverty Reduction & Community Training Program (OPRCTP):Mr. Bhurt Shahnawaz0300-9376114
Punjab Rural Support Program (PRSP):Mr. Jamal Nawaz0333-4464105
SAFCOSupport Foundation (SSF):Mr. Bashir Abro0333-4398625
SERVE (Sustainable Development, Education, Rural Infrastructure, etc.):Mr. Zeeshan Naseem0300-3352210
Sayya Microfinance Company (SMC):Mr. Atif Waqas0321-9601627
Sindh Rural Support Program (SRSO):Mr. Aasar Bhanbhro0333-7404580
Thardeep Rural Development Program (TRDP):Mr. Ghulam Mustafa Soomro0333-2587166
Initiative for Development & Empowerment Axis (IDEA):Mr. Murad Ali Shah0345-9048972
Center of Excellence for Rural Development (CERD):Mr. Noman Dayan0346-6888093
Khwendo Kor (KK):Ms. Sidra Khan0318-5755945
Baluchistan Rural Development Society (BRDS):Mr. Mir Ahmed Shahwani0314-9041104
Participatory Integrated Development Society (PIDS):Mr. Hashim Sherani0303-8358109
Table: Partner-Organization

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Eligibility Criteria

The eligibility criteria to get an interest-free loan from the Pakistan Poverty Alleviation Fund (PPAF) may vary depending on the partner organization through which the loan is being provided.

However, some of the common eligibility criteria that PPAF partner organizations may consider are:

Eligibility CriteriaDetails
Income Level:Must be from a low-income household unable to access traditional financial services.
Age:Must be at least 18 years old and not more than 60 years old.
Residency:Must be a resident of the area where the partner organization provides the loan.
Credit History:Must not have a history of loan defaults or other credit issues.
Business Plan:Must have a viable business plan or a clear purpose for the loan.
Guarantor:May need to provide two guarantors to secure the loan.
Social Status:Must be a member of a vulnerable or marginalized community (e.g., women, minorities, disabled).
Table: Eligibility-Criteria

How To Get An Interest-free Loan (Loan Application Procedure)

PPAF provides interest-free loans to poor households through its partner organizations, including microfinance institutions and community-based organizations.

To apply for an interest-free loan from PPAF, you can follow these steps:

Identify Partner Organization:Visit the PPAF website or contact local government/community center to find a PPAF partner organization in your area.
Meet Eligibility Criteria:Ensure you meet income, residency, and other criteria set by the partner organization.
Submit Application:Submit an application form provided by the partner organization.
Attend Orientation Session:Learn about loan terms, repayment schedule, and requirements.
Receive Loan Disbursement:Upon approval, receive your loan for starting or expanding your business, or for other financial needs.
Repay the Loan:Repay the principal amount according to the agreed repayment schedule.
Table: how-to-get-interest-free-loan-from-government


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Top 3 Welfare Organizations In Pakistan To Get Interest-Free Loans (Additional)

Akhuwat Foundation

Akhuwat Foundation, a well-known welfare organization in Pakistan, provides substantial interest-free loans, offering a helping hand to those in need. Akhuwat Foundation gives 1 lakh interest-free loan, and duration of 2 months, for small-scale businesses to support poor families.

Loan Amount:

Loan TypeAmount Range (PKR)Repayment PeriodPurpose
Family Enterprise Loan:10,000 to 50,00010 to 36 monthsFor family-run businesses
Agricultural Loan:10,000 to 50,0004 to 8 monthsFor farmers
Housing Loan:30,000 to 50,00010 to 36 monthsFor housing needs
Table: Loan-Amount

Alkhidmat Foundation

Alkhidmat Foundation has been a prominent non-profit organization, wholeheartedly committed to humanitarian efforts since 1990.

Alkhidmat’s Mawakhat Program is all about helping entrepreneurs like you. With this loan, you can turn your business dreams into reality and become financially independent. Alkhidmat is here to support you every step of the way on your business journey.

Alkhidmat Foundation is known for providing interest-free loans in Pakistan. These loans range from a minimum of 10,000 to 100,000 rupees and are available through various programs.

Loan Amount

Akhuwat Foundation provides a special loan for small businesses.

Loan TypeAmount (PKR)Repayment PeriodPurpose
Small Business Loan:100,0002 monthsFor small business
Table: Loan-Amount

Kashf Foundation

Kashf Karobar Karza is the main loan from Kashf Foundation for women who want to start a business, grow an existing one, or reopen a business that has been closed for at least three months.

It’s also available to women who want to support family members running businesses.

Loan Amount:

The Kashf Karobar Karza loan offers an amount ranging from:

Loan TypeAmount (PKR)Repayment PeriodInstallmentsTerm
Kashf Karobar Karza:40,000 (First Cycle) to 100,0001 year12 equal monthly payments12 months (1 year)
Table: Loan-Amount

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Pros And Cons-Interest-Free Loan



  • No interest: Interest-free loans mean that you don’t have to pay any additional amount over the principal loan amount, making it a more affordable option for low-income households.
  • Access to credit: For many low-income households, accessing traditional financial services can be challenging due to high-interest rates or other barriers.
  • Flexibility: PPAF partner organizations may provide loans for a variety of purposes, such as starting a business, purchasing livestock, or investing in education or healthcare


  • Repayment requirements: Although interest-free loans don’t require borrowers to pay any additional interest.
  • Limited loan amounts: PPAF partner organizations may have limited funds available for interest-free loans, which may result in borrowers receiving a smaller loan amount than they had hoped for.
  • Dependency: Some borrowers may become dependent on interest-free loans to meet their financial needs.

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FAQs | Interest-Free Loan In Pakistan

What is an interest-free loan from PPAF?

An interest-free loan from PPAF is a loan that doesn’t require borrowers to pay any additional interest on top of the principal loan amount.

Who is eligible for an interest-free loan from PPAF?

Borrowers must be from low-income households that are unable to access traditional financial services, be between the ages of 18 and 60, and have a viable business plan or purpose for the loan.

How much money can I borrow with an interest-free loan from PPAF?

The amount of money borrowers can receive with an interest-free loan from PPAF may vary depending on the partner organization providing the loan and the borrower’s eligibility. Loan amounts may range from a few thousand rupees to several lakhs.

What happens if I can’t repay my interest-free loan from PPAF on time?

If borrowers are unable to repay their interest-free loan from PPAF on time, they may be subject to additional fees or penalties, and their credit score may be negatively impacted. It’s important to carefully consider the ability to repay the loan before applying for an interest-free loan from PPAF.

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