Islamabad—With an allocation of Rs 3.5 billion, the Prime Minister’s Interest Free Loan Scheme reached 207720 borrowers by end August this year. They included 127,697 (61%) women.
Up to Rs.50, 000/- are given to each borrower under the scheme and this amount has a 99% recovery rate. With 26 partner organizations, PPAF is presently disbursing the interest free loans in 44 Districts and 287 Union Councils. The total amount disbursed to the borrowers till the end of August 2016 has reached Rs.4.518 billion through 233 loan centers.
According to Chief Executive Officer PPAF Qazi Azmat Isa the target areas for the loans are areas with low socio-economic indicators, high food insecurity and low or no coverage by conventional micro-finance.
In a meeting with Finance Minister Ishaq Dar, he observed that the Prime Minister’s Interest Free Loan scheme not only provides loans to the consumers but also gives them business advisory services. A consumer graduates from dependency to sufficiency and then his/her links are established with microfinance institutions and markets. It is an all encompassing scheme where people are dealt with respect and guidance is provided on each step and a social change automatically comes into effect.
The Finance Minister appreciated the work being done by the PPAF to further the PM’s Interest Free Loan Scheme. He desired that every effort should be made to export the coverage and increase the total volume of loans extended.
He appreciated the fact that the scheme was covering 61% females. “The success of the scheme speaks volumes about the commitment of the government for the people of the country.