Ehsaas Interest Free Loan (IFL) Program – Complete Guide (2025 Edition)
The Ehsaas Interest-Free Loan (IFL) Programme is one of Pakistan’s most ambitious poverty reduction strategies. Launched under the Ehsaas framework by the Government of Pakistan, this initiative aims to empower millions by offering financial assistance through interest-free loans to the most vulnerable segments of society.
In this in-depth guide, we will walk you through everything you need to know about the IFL Programme—from its goals and eligibility criteria to loan disbursement data, sector-wise statistics, and the step-by-step application process in 2025.
📘 Table of Contents
- What is the Ehsaas IFL Programme?
- Key Objectives of the Ehsaas Loan Scheme
- Loan Features & Benefits (2025 Update)
- Eligibility Criteria for Ehsaas Loan 2025
- Loan Disbursement Statistics (2021 Snapshot)
- Sector-Wise Loan Allocation
- Geographical Coverage & Loan Centers
- How to Apply for the Ehsaas Loan in 2025
- Collaborating Stakeholders & Partner Banks
- Graduation Ladder: From Vulnerability to Financial Inclusion
- Frequently Asked Questions (FAQs)
- Contact Information & Support
✅ What is the Ehsaas IFL Program?
The Ehsaas Interest-Free Loan Program is a poverty alleviation initiative launched by the Pakistan Poverty Alleviation Fund (PPAF) and funded by the Government of Pakistan. Spanning from 2019 to 2023, this program was designed to provide interest-free microloans to underprivileged individuals with the aim of building sustainable livelihoods.
🔍 Key Stats:
- Program Duration: 2019–2023
- Loans Targeted: 3.8 million
- Beneficiaries: 2.28 million households | 1.14 million individuals
- Loan Centers Established: 781
🎯 Key Objectives of the Ehsaas Loan Scheme
The IFL programme focuses on long-term poverty reduction through self-employment and financial inclusion. Its primary goals are:
- Financial Access: Enable economically marginalized groups (with PSC score ≤ 40) to access interest-free loans.
- Women Empowerment: Ensure at least 50% of all loans are allocated to women.
- Entrepreneurship Development: Link borrowers with:
- Enterprise and vocational training
- Financial literacy and numeracy programs
- Mentorship and business counseling
- Market access and supply chain integration
- Behavioral Transformation: Promote health awareness, educational initiatives, and environmental consciousness.
💰 Loan Features & Benefits (2025 Update)
| Feature | Details |
| Loan Amount | Rs. 2,000 – Rs. 500,000 |
| Monthly Assistance | Rs. 8,000 |
| Interest Rate | 0% (completely interest-free) |
| Repayment Period | Up to 3 years (flexible installments) |
| Loan Processing Time | 2–4 weeks |
| Special Allocation | 50% of loans reserved for women |
| Total Disbursed (As of 2021) | 1.55 million loans worth Rs. 55.57 billion |
This update broadens the loan cap to Rs. 500,000 in 2025, accommodating larger entrepreneurial aspirations.
Eligibility Criteria for Ehsaas Loan 2025
To qualify for the Ehsaas Loan in 2025, applicants must meet the following:
✔️ Basic Requirements
- Age: Between 18 and 60 years
- Nationality: Must be a Pakistani citizen with a valid CNIC
- Income Threshold: Monthly household income below Rs. 40,000
- Poverty Scorecard (PSC): 0 to 40
- Business Plan: Viable plan for a small-scale income-generating activity
- Residency: Must belong to a targeted Union Council within a selected district
👤 Eligible Groups
- Youth and recent graduates
- Students facing financial hardship
- Unemployed individuals
- Women and transgenders
- Persons with disabilities
- Aspiring small-scale entrepreneurs
As of September 2021:
- Total Loans Disbursed: 1,556,808
- Total Amount Disbursed: Rs. 55.57 billion
- Average Loan Size: Rs. 32,839
- Female Beneficiaries: 51% of the total disbursed loans
🏭 Sector-Wise Loan Allocation
Understanding where these loans are being utilized can help you plan your own venture effectively.
| Sector | % of Disbursed Loans |
| Services (e.g., salons, carts) | 34.1% |
| Petty Trading/Commodities | 20.3% |
| Manufacturing/Workshops | 16.3% |
| Livestock & Farming | 13.0% |
| Embroidery/Handicrafts | 8.3% |
| Agriculture/Cropping | 8.0% |
🌍 Geographical Coverage & Loan Centers
- Coverage: Over 147 districts in all provinces and regions including:
- Punjab
- Sindh
- Balochistan
- Khyber Pakhtunkhwa
- ICT, Gilgit Baltistan, AJK
- Loan Centers: More than 1,100 loan centers established for public access
📝 How to Apply for the Ehsaas Loan in 2025
Getting started with the Ehsaas IFL Programme is simple and user-friendly.
📱 Method 1: Online Application
- Visit: PPAF Ehsaas Loan Portal
- Enter your CNIC and business information
📲 Method 2: Ehsaas Loan Mobile App
- Download the app
- Register using your CNIC
- Submit your documents
- Track application status
🏢 Method 3: Visit a Local Loan Center
- Find your nearest Ehsaas center
- Submit your application in person
🌐 Method 4: 8171 Web Portal
- Visit the 8171 portal
- Enter your 13-digit CNIC to check eligibility
🤝 Collaborating Stakeholders & Partner Banks
🔗 Stakeholders
- Pakistan Poverty Alleviation Fund (PPAF)
- International Fund for Agricultural Development (IFAD)
- Benazir Income Support Programme (BISP)
- Kamyaab Jawan Programme
- Engro Foundation
- State Bank of Pakistan
🏦 Partner Banks
- National Bank of Pakistan (NBP)
- UBL
- Khushhali Microfinance Bank
- First Women Bank
- Bank of Punjab
- ZTBL (Zarai Taraqiati Bank Limited)
📈 Graduation Ladder: From Vulnerability to Prosperity
This four-step model ensures a sustainable transition from dependency to empowerment.
| Step | Description | PSC Range |
| 1. Social Protection | Cash transfers via BISP/Kafalat | 0–16.17 |
| 2. Asset Transfer & Training | Provision of skills and tangible assets | 0–23 |
| 3. Interest-Free Loans | Ehsaas IFL for micro-businesses | 0–40 |
| 4. Microfinance Linkage | Transition to formal banking systems |
❓ Frequently Asked Questions (FAQs)
Q1: How long does it take to receive the loan?
A: Typically 2–4 weeks after application processing.
Q2: Can I apply more than once?
A: You may reapply after repaying the previous loan.
Q3: Is collateral required?
A: No, the Ehsaas loans are collateral-free.
Q4: How is loan usage verified?
A: Loan officers conduct field visits and require proof of business setup.
📞 Contact Information & Support
Need more help or want to follow up?
- Phone: +92 (51) 8439450 – 79
- Fax: (+92-51) 2234343-79
- Email: info@ppaf.org.pk
- Official Website: www.ppaf.org.pk
📌 Final Thoughts: Breaking the Cycle of Poverty
The Ehsaas Interest-Free Loan Programme stands as a beacon of hope for millions in Pakistan. Whether you’re a budding entrepreneur, a woman with a dream, or someone just trying to rise above poverty—this initiative gives you a chance to take control of your financial future without the burden of interest.
💡 Take the first step today and apply for the Ehsaas Loan 2025. Your journey towards self-sufficiency and empowerment begins now.
