Introduction:

Many people are searching high and low to get a personal loan but they
believe there is no such bank that provides interest free loans in Pakistan.
The most important thing is to know that all the banks mentioned below will
give you the best interest rates and terms.

An interest-free loan is a form of unsecured loan. That is, you do not have
to put any collateral with the bank in order to avail of this loan. But this
does not mean that you don’t need anything in return for your loan before getting
the money. There are certain qualities or qualifications that a bank will ask
for when it comes to offering interest free loans.

Habib Bank

Habib Bank, a nationalized bank based in Karachi, offers interest free loans
to all its customers on an individual basis. The interest free loan scheme is
known as the Habib Foundation. This scheme is available to all customers
regardless of their financial status, credit history, or personal
circumstances.

The Habib Foundation provides you with a zero percent interest loan in the
range of Rs 10,000 to Rs 1 million without any collateral requirement or
co-signers. The minimum repayment period for this loan is one year and you can
avail of your loan once every 12 months without having to reapply for the same.

You can choose to repay your loan over a fixed period or use it as a lump
sum payment. You may also choose to pay up your entire amount in one go at any
time during the year or spread it out over several months if you want more time
to pay off each installment.

Bank Alfalah

Bank Alfalah is a leading Islamic commercial bank in Pakistan. It is one of
the best banks in Pakistan offering interest free loans to its customers. Bank
Alfalah offers various kinds of loans such as personal loans, business loans,s
and car loans.

The bank offers the following types of interest free loans:

Personal Loan:

The personal loan offered by the Bank Alfalah has a maximum limit of Rs.
50,000 with a maximum tenure period of 36 months. The rate charged on this loan
is 1% per month. Interest is not charged on this type of loan.

Business Loan:

The business loan offered by the Bank Alfalah has a maximum limit of Rs.
2,50,000 with a maximum tenure period of 24 months with an interest rate of 6%
per annum. Interest is charged on this type of loan. However, it should be
noted that this type of lending is only available to individual entrepreneurs
and small-scale businesses whose turnover does not exceed a million per annum.

Standard Chartered

Standard Chartered Bank is the first bank in Pakistan to offer interest-free
loans. The loan facility is available to all its clients who are willing to
avail of it. Standard Chartered Bank offers interest free loans in Pakistan
from $10,000 to $5 million which may be availed for any purpose.

The bank offers a range of products and services that can help you with your
financial planning. These include investment products, business loans, personal
loans, and more. The bank also provides customers with a range of financial
products that can help them with their day-to-day banking needs. These include
current accounts and savings accounts, debit cards, checkbooks, ATM cards, and
more.

The bank has branches in Pakistan’s major cities like Karachi, Lahore,
Islamabad, and Rawalpindi which make it easier for customers to get their
required services at their doorstep without having to travel long distances or
wait in long queues.

Allied Bank

Allied Bank Limited is a commercial bank in Pakistan. It has been
established in 1999 and has its headquarters in Karachi, Sindh. Allied Bank is
one of the largest banks in Pakistan with a network of branches across Pakistan
and abroad. The bank offers interest free loans to customers from its doorstep
or through internet banking as well.

Allied Bank is one of the leading financial institutions offering home loans
to customers across Pakistan. The bank offers home loans for both commercial
and residential purposes at competitive rates with attractive interest rates on
loans taken by customers. Interest-free installment plans are also available
from this bank to help you get the best deal on your home loan.

Faysal Bank Ltd.

Faysal Bank Ltd., the largest bank in Pakistan, offers the following
interest free loans:

1. Personal Loan – To invest in personal development or to consolidate your
current debts, this loan is available at a fixed rate of 7.5% p.a. with an APR
of 8% p.a. The minimum amount required is PKR 10,000, and the maximum amount is
PKR 200,000.

2. Educational Loan – This loan is offered to students who wish to pursue
their education further by paying back their loan at a fixed rate of 5% p.a.,
which can be increased up to 10%, according to your earnings after graduation.
The minimum amount required is PKR 10,000, and the maximum amount is PKR 1
million (for both public and private institutions).

National Bank of Pakistan

The National Bank of Pakistan (NBP) offers a number of interest free loans.
The National Bank of Pakistan is one of the most trusted banks in Pakistan and
has been providing financial services to customers since 1877.

National Bank’s interest free loans include:

Personal Loans – NBP offers personal loans up to Rs 1 million with a tenure
of 3 years. The loan amount can be divided into multiple installments depending
on your requirement.

Business Loans – NBP offers business loans up to Rs 5 million. Business
loans are available for all types of businesses including small-scale
enterprises, medium and large-scale industries, retail and wholesale trade
shops, etc. You can choose from many repayment options like monthly or annual
installment plans as per your requirement.

Credit Cards – If you have an outstanding balance on your credit card
account then you can avail NBP credit card with a 0% interest rate for 6 months
and 12 months respectively upon approval from our credit department.

United Bank Limited

United Bank Limited is one of the leading banks in Pakistan. It has a wide
range of products and services with an aim to provide its customers with the
best banking experience possible.

United Bank Limited provides interest free loans to many customers in
Pakistan. The loans are also available to individuals and businesses who can
apply for these loans online.

Loan Eligibility

Individuals above 18 years of age, who have been living in Pakistan for at
least one year can apply for these loans. The annual income of the borrower
must be more than Re 1,000 per month. Anybody can apply for these loans
provided they fulfill all eligibility criteria mentioned above and
additionally, they do not have any outstanding loans from other financial
institutions or their credit card companies as well.

Branches of Habib Metropolitan Bank Ltd.

Habib Metropolitan Bank Ltd. is one of the leading commercial banks in
Pakistan. The bank was established in 1923 and has a branch in every province
of Pakistan, with an authorized capital of PKR 500 million.

The bank has a wide range of services to meet the needs of its customers.
These include residential mortgage loans, personal loans, car loans, business
loans, and many more.

The bank also offers interest free loans to its customers which are eligible
for repayment after 2 years without any interest charged on it.

Branches of Meezan Bank Ltd.

Meezan Bank Limited is one of the leading banks in Pakistan and has branches
in various cities such as Lahore, Karachi, Islamabad, and Rawalpindi. The bank
was established by Syed Zulfiqar Ali Shah on 25th April 1931. It has been
awarded the Best Bank of Pakistan award for four consecutive years.

The Meezan Bank offers interest-free loans to customers who meet certain
criteria. Customers can avail of this facility by depositing at least Rs50,000
into their account with them. They can then use this money to make any kind of
purchase or investment according to their needs.

This is the list of banks that offer interest free loans in
Pakistan.

Here is the list of banks that offer interest-free loans in Pakistan.

1.      Bank
Islami Limited

2.      Bank
Of Maharashtra Limited

3.      Bank
of Punjab Limited

4.      Bank
Al-Maghrib (Pakistan) Limited

5.      Bank
Technology Limited

6.      Bank
Of Baroda

7.      Bank
Dost Muhammad Khan Ltd

Branches of Habib Metropolitan Bank Ltd.

Habib Metropolitan Bank Ltd, a leading financial institution in Pakistan
which is approved by the Central Bank of Pakistan and has branches all over the
country, offers interest-free loans to its customers. The bank has several
branches all over the country and they are all located in different cities, so
you can easily get your loan from the branch nearest you.

The bank offers a wide range of products and services to its customers
including checking accounts, savings accounts, money market accounts, term
deposits, credit cards, and mortgages. You can apply for these products through
their website or through any of their branches located in your area or near
your home.

Branches of Meezan Bank Ltd.

Meezan Bank Ltd. is a private-sector bank in Pakistan. It was established in
2015, with a capital of Rs 100 million and its head office is located in
Karachi. The bank is a subsidiary of the Meezan Group which has been active in
the banking industry for more than 50 years. The bank provides services to both
individuals and corporate clients through its branches located across Pakistan.

Meezan Bank offers interest-free loans to its customers on an annual basis,
as well as on monthly basis, depending on the requirement of that customer’s
requirements. The rate of interest-free loans offered by this bank are as
follows:

Interest-free loan on annual basis: 1% per year

Interest-free loan on monthly basis: 0.5% per month.

This is the list of banks that offer interest-free loans in
Pakistan.

This is the list of banks that offer interest-free loans in Pakistan.

1. Habib Bank Limited

2. UBL Bank Limited

3. First Gulf Bank Limited

4. Standard Chartered Bank Limited (Central)

5. Habib National Bank Limited

6. National Bank for Agriculture and Rural Development (NABARD)

The best thing about this loan is that there are no hidden charges
and it does not impose any conditions on the customer before applying for the
loan.

What makes this bank different from the rest?

The best thing about this loan is that there are no hidden charges and it
does not impose any conditions on the customer before applying for the loan.
The bank has a good reputation among its customers and has been able to sustain
its business for the past few years.

The bank also offers interest-free loans, which is a great advantage for
people who need money urgently but do not have enough cash to get a loan from a
conventional bank.

Naya Pakistan Housing Scheme has started attracting private banks
and they are offering interest-free loans to its clients.

The Naya Pakistan Housing Scheme has started attracting private banks and
they are offering interest-free loans to its clients.

Naya Pakistan Housing Scheme is a housing scheme that was launched by the
government to provide affordable housing for all citizens of Pakistan. This
scheme was launched in October 2018. The government has promised that it will
build millions of houses under this scheme. It will be financed by the
government’s revenue and borrowings from foreign countries like China, India,
etc.

The scheme offers interest-free loans to its customers who wish to buy homes
under it. However, there are some conditions that each customer must fulfill
before they can avail of any such loan from the bank or any other financial
institution.

One of these conditions is that you need to have an annual income of at
least Rs50,000/- per month or Rs5 million in total over three years. Another
condition is that you should have an annual income of at least Rs10 million
over five years or Rs20 million over seven years or Rs40 million over 10 years
etc.

Conclusion:

Considering the rate of inflation at which prices in Pakistan have been
increasing these days, it’s no surprise that some banks in Pakistan are
providing interest-free loans to help their customers tide over this difficult
period. But, you need to check with your bank first whether they provide such a
facility and more importantly, at what interest rates they do. Often banks
charge other fees and taxes from the borrowers hence you must be careful.

I have tried to search online but I could not find a good answer. They are
Western union, Al Kabeer bank, HBL, and RBSC. I have tried Western union, Al
Kabeer and HBL. but RBSC is new to me. I don’t know anybody who loaned money
through this bank. So it’s a little risky to take a loan from this bank.