Almost everyone dreams of starting their own business but needs more resources and opportunities to do so. To help the poor segment of society, the government of Pakistan has begun Ehsaas interest free loan under the Ehsaas program.
This program provides loans to those who need help to start their small businesses or improve their existing ones. This article will discuss the program, its eligibility criteria, benefits, and how to apply.
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What is Ehsaas Interest-Free Loan Program?
It is a government initiative to assist needy people financially. Under this program, the government provides interest-free loans of up to PKR 100,000 to individuals who want to start their small businesses or improve their existing ones. One to two years are set aside for repayment of the loans without an agreement.
Eligibility Criteria and Loan Requirements
To be eligible for the program, you must meet the following criteria:
Valid CNIC: You must have a valid national identity card (CNIC).
Status: You must not be a government employee.
Age Limit: You should be between the ages of 18 to 60 years.
Financial Need: You should be financially needy and need help to obtain a loan from any other source.
Educational Qualification: No specific academic qualifications are required to apply for the loan.
Business Plan: You must have a feasible business plan to implement within the given loan amount.
Ehsaas Interest-Free Loan Apply 2023
Individuals eligible for the Ehsaas Interest-Free Loan program can apply through the Ehsaas website or by visiting the nearest Ehsaas Center.
- Visit the Ehsaas website and download the application form here.
- Describe your business plan and yourself accurately and thoroughly in the application form.
- Attach all the required documents, including a copy of your CNIC, business plan, and income certificate.
- Submit the completed application form and the required documents to the nearest Ehsaas office.
- Wait for the verification process to be completed, and if your application is approved, you will be contacted to collect your loan amount.
The Ehsaas Interest-Free Loan program has several advantages for needy individuals in Pakistan. Some of these benefits are:
The loan provides financial assistance to people who cannot obtain loans from other sources. This helps them start their businesses on a small scale or improve their existing ones, leading to increased economic activity.
The loan is provided interest-free, which means that the individuals do not have to worry about paying additional interest on the loan amount.
The loan repayment period is between one to two years, providing sufficient time for the applicant to repay the loan amount without any financial burden.
Ehsaas Interest Free Loan vs. Personal Loan: What’s the Difference?
|Ehsaas Interest-Free Loan||Personal Loan|
|Purpose||Income-generating activities, such as starting a small business or investing in agriculture||Any purpose|
|Eligibility criteria||Applicant must be under poverty line||Anyone who meets the lender’s eligibility criteria|
|Source of funding||Government initiative||Banks and financial institutions|
|Loan term||Up to 2 years||Varies depending on the lender|
|Insurance||No insurance required||Insurance may be required depending on the lender and the borrower’s creditworthiness|
Is Ehsaas Interest-Free Loan right for you?
Suppose you are a low-income individual or family who needs financial assistance for income-generating activities and does not want to pay interest or offer collateral. In that case, the Ehsaas Interest-Free Loan program is right for you. However, a personal loan may be a better option if you require a higher loan amount or more extended repayment period or are not eligible for the program.
What happens if you miss a payment of Ehsaas interest program?
Missing a payment under the program can result in penalties and other consequences. Penalty fees will increase the overall cost of borrowing.
If you cannot make your loan repayments, it is essential to contact the program officials as soon as possible to discuss your options. They can offer you a repayment plan or other solutions to help you avoid defaulting on the loan.