Prime Ministers Interest Free Loan Scheme (PM-IFL Scheme)

EPS in partnership with PPAF has been implementing Prime Minister Interest Free Loan (PM-IFL) Scheme in Union Councils Kuza Bandi and Totano Bandi of Tehsil Kabal, Swat. As per the scheme, EPS had to target beneficiaries falling in the range of 0-40 Poverty Score range and to disburse 1500 small loans with average size of Rs. 20,000 in both Union Councils for a maximum period of one year. Owing to the successful execution of the project PPAF not only extended the existing project but also expanded the program to Hazara and Koz Abakhal of Kabal with additional 1300 small loans started in April, 2015. Agreement with PPAF regarding PMIFL for all the four union councils is till June 2018 and needs annual renewal of operational costs and IP for revolving funds. Progress as given below is for all targeted four UCs. Moreover, in 2018 due huge stuck loans in UC Koza Badai, EPS focused on recovery and replaced the UC Koza Bandai with UC Kanju.

Owing to the legal requirement for execution of the program EPS has submitted application to SECP Islamabad for not for profit company registration under section 42 on the name of ‘Economic Promotion Support’. The application is under review at SECP level and upon issuance of NOC new company will be registered. Moreover, phase-1 of PMIFL has ended on June 30, 2018 while agreement of Phase-2 of PMIFL ended in March, 2019. As per decision in the PPAF meeting of PMIFL Steering Committee held in March, 2018 and subsequent approval of PPAF Management, PPAF will continue implementation of the PMIFL Scheme as an integral part of poverty graduation approach through POs to save depletion of funds in favor of the poor. The PMIFL PO’s financing agreements which are expiring after completion of 4-year period, will be further continue for three more years with those POs whom performance is satisfactory.

April, 2015