KP Govt Interest Free Loan Programme
If you’re a government employee in Khyber Pakhtunkhwa, here’s some good news — the KP Interest Free Loan Programme 2025 is now open. Managed by the Provincial Benevolent Fund, this scheme helps employees in BS-1 to BS-17 (and above for car loans) with interest-free loans for transport and housing needs. The best part? No interest at all — repayment happens through easy monthly deductions.
Interest Free Loan Pragramme 2025
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What Is the KP Interest Free Loan Scheme?
The interest free loan programme KP is designed to support provincial employees with small yet meaningful financial help. Whether you need a bicycle, motorcycle, or want to renovate your house, the KP interest free loan can help you manage it without any extra cost. Applications for the 2025–2026 session are open, and funds have already been allocated by the provincial government.
Loan Categories and Amounts You Can Apply For
Here’s how the interest free loan scheme works for KP employees:
- Bicycle Advance: Rs. 8,000 (repay Rs. 200 monthly in 40 installments)
- Motorcycle Advance: Rs. 80,000 (Rs. 1,340 monthly for 60 months)
- House Building Advance: Rs. 250,000 (Rs. 2,080 monthly for 120 months)
- Motor Car Advance: Rs. 250,000 (Rs. 3,334 monthly for 60 months — for BS-17 & above)
To qualify, you must have served at least 5 years and have 5 years remaining. You also can’t be availing any other loan from the Benevolent Fund or another financial institution.
Other Interest-Free Loan Options for KP Citizens
Citizens are also able to consider national-level options, along with the KP interest free loan scheme.
- PM Youth Business & Agriculture Loan Scheme: There are loans up to 0% interest over a period of up to 3 years, up to a loan amount of 1 million rupees.
- Akhuwat Islamic Microfinance: Offers interest-free loans in business, agriculture, and home renovation between 10,000 and 50,000.
The options offer small business owners, youth startups, and family support in KP and Pakistan.
The KP interest free loan programme isn’t just financial aid — it’s a helping hand for government employees aiming for better living conditions. If you meet the criteria, apply early before the deadline closes.
FAQ’s
Who is Eligible for the KP Govt Interest Free Loan Scheme 2025?
The KP interest free loan is only limited to permanent employees of the Provincial Government. This includes basic pay scales BS-1 to BS-17 on any type of loan. Only the officers above BS-17 may apply to the Motor Car Advance. The eligibility must also entail a minimum service period with no external loan facilities in order that the benefit will reach the most deserving personnel to this critical interest free loan.
What are the Maximum Interest Free Loan Amounts in KP?
The limit on loan under the interest free loan scheme is 250,000 in the House Building Advance category and the Motor Car Advance category. The smallest loan is Bicycle Advance which is Rs. 8,000. All the loans within the interest free loan Programme KP are repaid by making easy and fixed monthly payments, which are deducted directly out of the salary of the employee with no interest.
How Do KP Govt Employees Apply for the Interest Free Loan?
KP government employees must obtain the official application form and required documents (CNIC copy, service proof, etc.) from the Provincial Benevolent Fund website or their department. The completed form for the KP interest free loan is then submitted through the respective Departmental Drawing and Disbursing Officer (DDO) for scrutiny and forwarding to the Benevolent Fund Cell for final approval of the interest free loan scheme.
Is the Interest Free Loan Programme KP available for Non-Government Citizens?
No, this particular interest free loan Programme KP is solely in the interest of the welfare of employees of the provincial government who are already serving and is under the Benevolent Fund. However, ordinary citizens who want to take a zero-interest loan could enquire about programs such as the national PM Youth Business and Agriculture Loan Scheme (Tier-1) or microfinance organizations such as Akhuwat that also provide the same interest free loan policy within the country and Pakistan (including in KP).