Interest-free loans in Pakistan: which schemes really charge zero markup

An interest free loan in Pakistan comes from one of two places, as of October 2026. Akhuwat lends its own money as Qarz-e-Hasan with no markup, from Rs 10,000 to Rs 15 lakh. The rest are government schemes that charge you no markup, often because the government pays it for you: Punjab’s Asaan Karobar Card and Finance, Apni Chhat Apna Ghar, the PM Youth loan’s Tier 1, and Punjab’s Kissan and Livestock cards. Zero markup rarely means zero cost, so check the fees below.

Which loans in Pakistan are really interest-free?

These are the 0% loans we could confirm from an official page or a dated news report. Amounts and fees are as of October 2026.

The Kissan Card’s Rs 360,000 cap comes from an undated Agriculture Department poster. We follow it because it is the current official figure on the department’s page.

Where can I get an interest-free loan for business?

You have three choices, and two are Punjab only.

• Anywhere in Pakistan, small amount: Akhuwat’s family enterprise loan, Rs 10,000 to Rs 50,000 over 10 to 36 months. You need a CNIC, an age of 18 to 62 and two guarantors outside your family.
• Anywhere in Pakistan, up to Rs 5 lakh: PM Youth loan Tier 1, repaid over up to 3 years with only your personal guarantee. MCB’s page still says the scheme is valid till 30 Jun 2026, but the application form on pmybals.pmyp.gov.pk was live on 18 Oct 2026.
• Punjab: the Asaan Karobar Card (up to Rs 10 lakh, spent mainly through the card) or Asaan Karobar Finance (Rs 10 lakh to Rs 3 crore, needs an NTN). By 3 Jan 2026 the two had lent Rs 70 billion to 108,371 businesses, APP reported.

We couldn’t confirm the Asaan Karobar Card is taking new applications: its portal didn’t respond. For bank loans with markup, see business loans in Pakistan.

Can I get an interest-free loan for a house?

In Punjab, yes. Apni Chhat Apna Ghar lends up to Rs 15 lakh to build a house on a plot you own, up to 5 marla in a city or 10 marla in a village. You repay Rs 14,000 a month over about nine years. Since July 2026 it also lends Rs 5 lakh to repair a weak roof and Rs 10 lakh to add a storey. You apply at acag.punjab.gov.pk, which timed out when we tried it on 17 Oct 2026.

Elsewhere, Akhuwat’s housing loan gives Rs 1 lakh to Rs 15 lakh for repairs or new rooms. It is for poor families on up to 5 marla whose household has grown to 8 or more people.

The federal Mera Ghar Mera Ashiana loan is not interest-free. It charges a flat 5% on up to Rs 1 crore, SBP said in March 2026. See Mera Pakistan Mera Ghar and home loans in Pakistan for bank rates.

Is there an interest-free loan for students?

Two schemes describe themselves that way, but neither is a simple cash loan you can apply for today.

• PM Youth laptop loans. The scheme lists markup-free laptop loans of Rs 150,000, Rs 300,000 or Rs 450,000 over 4 years, for students aged 18 to 30 at HEC-recognised institutions.
• NBP Students Loan Scheme. A government scheme from 2001-02, run by NBP, that pays fees, boarding and books for students with 70% marks in science, technical and professional subjects at public universities. You repay within 10 years. NBP’s page lists no round after the one that closed on 29 Jul 2022.

Punjab’s student electric bike scheme is interest-free too, at Rs 3,028 a month. Its applications closed on 4 Oct 2026.

Are 0% card instalments and buy now, pay later interest-free?

Sometimes, and only on chosen products. HBL, UBL and MCB advertise 0% markup plans with partner shops, but a fee can still apply. UBL says a booking fee is charged on every transaction converted to its instalment plan. Outside these offers, card instalment plans cost 24% a year at HBL, plus a Rs 1,200 fee per plan.

Wallet “pay later” is not cheap: easypaisa charges 10% for 14 days or 20% for 30 days. Compare in credit card instalment plans and buy now, pay later in Pakistan.

Is Islamic bank finance an interest-free loan?

No, not in this sense. An Islamic bank doesn’t lend you money at 0%. For a house it buys the property with you and charges rent on its share, called diminishing musharakah. For a car it uses ijarah (leasing) or the same joint ownership.

The price is benchmarked to KIBOR, the same rate conventional loans use. That is a different contract, not a free loan. See Islamic vs conventional banking.

More guides: Loans & Support, personal loans, BISP 8171, Money.