interest free loan in pakistan

How to get Interest Free Loan in Pakistan for your Small Business

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How to get an Interest Free Loan in Pakistan for your Small Business


To get an interest free loan in Pakistan for your business or your education, some foundations might help you. Unlike other countries, Pakistan has many foundations and Islamic banks that provide an interest-free loan to needy people to start their venture.

When you borrow money from the bank or some other place, you have to pay back the loan and interest on the loan. Interest-free loans mean loans where the borrower doesn’t have to pay interest. Interest, also known as Sood, is completely forbidden in Islam. That’s why people look for ways to get interest free loans in Pakistan.

There are several ways from which you can get an interest free loan in Pakistan. These ways help you to borrow money cheaply or keep your existing debt in check. Most of the bank and loan providing companies took an interest in the loan. So, if you are starting your own small business or want a loan for your pre-existing business, then there are few ways you can get the loan without interest.

Best Places to get Interest Free Loan in Pakistan


1. Interest-Free Loan – Alkhidmat Foundation Pakistan

Alkhidmat foundation offers interest-free loans through its Mawakhat program. They provide loans to poor and needy people. If you are starting a small business, then you can also consult them for a free loan. They have a completely transparent system for providing the loan, which depends upon the number of funds. They have an independent monitoring body that supervises the distribution of interest-free loans. They provide interest-free loans up to 20k-50k to small businesses. They have branches in all the main cities of Pakistan. For interest free loans in Pakistan, you can visit their office or contact them on their website.

2. Akhuwat Foundation

Akhuwat foundation is another place where you can get an interest free loan in Pakistan. This foundation has become the world’s largest Islamic microfinance organization, and it aims to help people establish their business. They have a variety of loan schemes for each sector. They have loans like family enterprise loans, agriculture loans, liberation loans, housing loans, education loans, business loans.

You can visit their branches or get information on their website on how to apply for the loan. General requirements are having CNIC and age between 18 to 62 years. They have a transparent process and professional staff in their foundation.

3. Ihsan Trust

Ihsan Trust is a non-profit organization registered in 2010. They aim to provide interest free loans in Pakistan to needy and deserving individuals. They provide interest-free loans to needy students and professionals across Pakistan. If you want an interest free loan in Pakistan to complete your education or start your business, consult with the Ihsan trust, they will help you. Their process is simple and almost like the other foundations.

Ihsan Trust is working for many years, and hundreds of students got the loan and financial help and completed their education.

4. Rural Community Development Programs

RCPD has a strong community organization network that works with the support of many national and international organizations. They recently signed an agreement with the Prime Minster Interest-Free Loan Program under the Youth development Initiative with Pakistan Poverty Alleviation Fund to reach and help the poor communities. If you belong to Punjab’s rural area and need a loan for studies or a small business, you can consult them.

The prime minister’s interest-free loan program started providing loans to the poor community of the country. The project aims to provide loans and help in the development of sectors like economic, social. They also want to empower youth and support their business programs. You can consult them on their website for more information about the loan.

5.PM Youth Business Loan

You can get PM youth business loans from banks like Summit bank etc. They provide loans to uneducated youth and those who are looking to establish their small businesses. The loan is offered to all citizens of Pakistan holding CNIC and having age between 21 to 45 years. The person applying for the loan should have clean credit card history. They provide a tenor of a maximum of 8 years, depending upon the nature of business and repayment capacity. Processing time will be 15 days, and it starts when you submit your documents. PM youth business loan also offers you a loan with little or no interest.

6. Agreement for Interest-Free Loan: State Bank of Pakistan

State banks also took a step in the availability of interest-free loans in Pakistan. State bank’s Shariah board approves the agreement for interest-free loans. They consider all the essentials and model agreements for Islamic modes of financing. State banks provide a chance to citizens of Pakistan to get the loan without interest.

Besides this, many local banks in Pakistan also offer interest-free loans. Before applying for a loan, check their requirement, and make sure that the loan is interest-free. Always apply to a trustworthy bank or foundation for the loan to avoid any scam.


If you want to open a small business or already have one but don’t have more money to invest, you can take a loan. There are so many trusts and foundations that provide the interest-free loan in Pakistan. Being a Muslim, everybody in Pakistan prefers interest free loan. Most banks provide loans but on interest and additional terms. Foundations like Alkhidmat, Akhuwat, Ihsan trust, and RCPD provide loans to Pakistan’s needy and poor people. These foundations are working for quite a long time and their process to apply for a loan is easy.

You want to do business by taking the loan, then trust the companies that are recommended by people. Don’t accept the loan before reading their terms and conditions. Many ways will help you to get an interest free loan in Pakistan. Above mentioned foundations are popular in Pakistan in terms of providing loans to needy people.

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