Prime Minister Qarz E Hasna Scheme

Prime Minister Qarz E Hasna Scheme

Qarz E Hasna Scheme 2013

Youth  Qarz E Hasna Scheme 2013

 

Prime Minister Qarz e Hasana Scheme Detail ( PM Micro Interest Free Loans Scheme Detail) – Prime Minister Nawaz Sharif Youth Schemes 2013

Brief description	Qarz-e-Hasana (Micro Interest Free Loans) facility aimed at helping the industry raise current access level of 2.5 million people to 5.0 million in next 5 years.
Eligibility criteria	Vulnerable rural and urban poor with a poverty score of up to 40
Focus on women	50% of loans will go to women borrowers.
Geographical spread	All Pakistan, preferably limited and un-served areas.
Pricing	It is Qarz-e-Hasana (Micro Interest Free Loans) and will not carry any mark-up.
Size and number of loans	250,000 loans of Rs.25,000 average
Government Grant 2013-14	Rs.3.5 billion.
Executing agency	PPAF through enlisted partner organizations and community organizations having necessary expertise and experience.
Recycling	Borrowers will be encouraged to return the loan that will go back to permanent fund available to the community for future lending. Fund will also educate the borrowers to convert from being “takers” to “givers”, so that the fund will continue to grow. Prime Minister's Qarz-e-Hasana                       Qarz-e-Hasana Qarz-e-Hasana or the microfinance loan facility is aimed at helping the industry raise current access level of 2.5 million people to 5.0 million in the next 5 years. 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. Pricing: 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. Recycling: 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.