Technical Education and Vocational Training Authority (TEVTA) Govt. of Punjab has taken remarkable initiative to launch an interest free loan scheme for its graduates. Under this scheme, TEVTA decided to advance interest free loans to TEVTA graduates throughout the Punjab province.

A service agreement was signed on 9th October, 2015 between TEVTA and Akhuwat Islamic Microfinance (AIM) for interest free loans to TEVTA graduates to start-up businesses and existing businesses which need capital to grow further.

Major Objectives of the Project:

  • To reach out to the low-income groups of people living in Gilgit Baltistan and support them with interest free loans enabling them to earn their livelihoods.
  • To help improve the socio-economic conditions of the target segment of the society through financial and social inclusion.
  • To promote self-employment.

Salient Features of Project:

  • First ever interest free loans project for TEVTA graduates on such scale.
  • Average Loan size range upto 100k.
  • Repayment period from borrowers: up to 30 months
  • Loans are given after due scrutiny and appraisal according to an eligibility criteria.
  • Mode of repayment of interest free loan: on monthly basis
  • Interest rate to be charged from borrowers: 0%
  • Loan application fee: up to PKR 200
  • Contributory fund for the re-payment of loan in case of death or Permanent disability of borrower:@1% (Optional) of loan amount and it will be paid by borrower.

Eligibility Criteria:

  • Applicant should be graduate of TEVTA and holder of TEVTA training certificate.
  • Applicant should provide a certificate duly signed by Principle/senior instructor from the TEVTA institution about character and credibility.
  • Applicant should have valid CNIC.
  • Applicant should be economically active.
  • Applicant should not be convicted of any criminal offence in lieu of which proceeding are in progress.
  • Applicant should be resident of operational area of Akhuwat branch.
  • Applicant should have age between 18-60 years.
  • Applicant should have capacity to provide two guarantors other than family members.
  • Applicant’s family should be willing to accept responsibility for repayment of loan.

Progress Report (30th June 2019)

Total Benefiting Families 30,446
Total loans disbursed – Males 22,209
Total loans disbursed – Females 8,237
Amount Disbursed PKR 1,683,249,000
Percentage Recovery 99.99%
Active Loans 14,641
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