PM’s interest free loan scheme benefits 207,720 people

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ISLAMABAD, Sep 20 (APP): As many as 207,720 people have benefitted from the Prime Minister’s interest free loan scheme launched under the banner of Pakistan Poverty Alleviation Fund (PPAF).

The information was disclosed during a meeting chaired by the Finance Minister to review the performance of the fund here Tuesday.

“With an allocation of Rs 3.5 billion, the scheme had reached
a total of 207,720 borrowers by the end of August 2016, including 127,697 (61%) women and 80,023 (39%) males,” Chief Executive Officer PPAF, Qazi Azmat Isa briefed the Finance Minister.

The Finance Minister on the occasion appreciated the work done by the PPAF so far 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 that the scheme was presently covering 61%
females adding the success of the scheme speaks volumes about the hard work and commitment by the government for the people of the country.

He added that the scheme would bring a quality difference in
the lives of the people and assured the PPAF of support in its
efforts to make the scheme more effective.

According to the scheme, up to Rs.50,000 are given to each
borrower 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.

The target for the loans are areas with low socio-economic
indicators, high food insecurity and low or no coverage by
conventional micro-finance.

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.