Home Livelyhood Interest Free Loan Scheme (IFLs)

Interest Free Loan Scheme (IFLs)

HANDS launched the Qarz-e-Hasana Scheme on May 2014; it is based on the principles of transparency and merit. The scheme is being implemented in three districts; the loan is without any markup. HANDS has established loan centers in its districts offices at Thatta, Badin and Lasbella. Project is operating  from 1st Nov. 2014 from existing HANDS DOs at Thatta, Badin and Lasbella.


  • Make Interest Free Loans (IFL) available to men,
  • women and youth from poor, vulnerable and marginalized households, not yet tapped by the microfinance sector, so that they may engage in productive economic activities that will improve their lives and allow them to positively contribute to the economy.
  • Establish and/or strengthen Urban and Rural Branches, and/ or Union Council based Community Loan Centers, capable of assessing, distributing and recovering Interest Free Loans to those
  • households on a Poverty Score Card of 0-40.
  • Support female participation and inclusion in economic activities, by disbursing at least 50% of the loans to women and persons with different abilities.
  • Encourage behavioral change by demanding loan beneficiaries to ensure specific health and education practices.
  • Enhance the entrepreneurial competencies amongst loan beneficiaries by extending services as a PLUS dimension of the Scheme, e.g. enterprise training and counseling, market linkages, financial literacy and numeracy training.


  • Formation of  Karobar Rehnumai Markaz (KRM) at DOs.
  • Conduction of FGD at Union council level and fill out UC detailed for awareness raising campaign and meetings with different stakeholders and local institutions at local level.
  • Ensure registration of potential borrowers at village  level
  • Receive loan applications from potential borrower
  • with computerized CNICs and picture.
  • Conduction of PSC with short listed borrowers according to selection criteria.
  • Conduction of Social appraisal & Economic appraisal
  • Group of 5 to 6 borrowers will be developing for disbursement.
  • 2 Guarantees required for each loan cases (one can be group member)
  • Development of Business plans
  • Pronote / Halaf Nama will be signed by borrower
  • Verification and recommendation from loan committees
  • Disbursement of loan amount through beneficiaries cheques
  • Recovery of loan.
  • Post verification on ground/field level.