The Punjab Social Protection Authority (PSPA) in collaboration with the Punjab Small Industries Corporation (PSIC) has launched an Income Generation Scheme for Persons with Disabilities (PWDs) titled “Graduation and Income Generation Scheme for Persons with Disabilities in Punjab”. The scheme aims to provide interest-free loans to PWDs in Punjab to establish their own small businesses and generate income on a sustainable basis. Punjab Small Industries Corporation and Akhuwat are the implementing partners of PSPA for this income generation scheme.
Under this scheme, PWDs can obtain interest-free loans of up to Rs. 50,000/- to establish their small businesses. Since its launch in October 2017, the scheme has disbursed Rs. 128.58 million among 5,612 disabled individuals. The program’s aim is to promote entrepreneurship and productivity among PWDs, helping them become self-sufficient, contributing members of society.
All people with disabilities in Punjab are entitled to receive interest-free loans under this scheme for setting up their own businesses. The PSPA Interest Free Loans program supports the mission of the PSPA to design programs, formulate policies, and suggest interventions that safeguard the rights of the poor and vulnerable. The program supports productive inclusion of the persons with disabilities (PWDs) in meaningful pursuit of livelihood and ensures equitable allocation of resources.
Project Features of PSPA Interest Free Loans
The features highlight the unique aspects of the project, focusing on providing interest-free loans to people with disabilities, making it affordable and inclusive for the target group.
- Pioneering Initiative: The project is the first of its kind to offer interest-free loans to individuals with disabilities on a significant scale.
- Maximum Loan Limit: Borrowers can avail loans up to PKR 50,000.
- Flexible Repayment Period: Borrowers have a repayment period of up to 18 months to return the loan amount.
- Stringent Evaluation Process: Loans are granted following thorough scrutiny and appraisal based on specific eligibility criteria.
- Interest-Free Loans: Borrowers are not charged any interest rate on the loans they receive.
- No Application Fee: There is no fee required to apply for the loan, making it accessible to all eligible applicants.
- Optional Contributory Fund: Borrowers have the choice to contribute 1% of the loan amount to a fund that can be utilized in case of the borrower’s death or permanent disability.
Eligibility Criteria for PSPA Interest Free Loans
- The applicant should be a person with disabilities
- Should be a resident of Punjab
- Must be able to submit a feasible business plan
- The business plan must be economically viable
- The applicant must not be a defaulter of any financial institution
- PWDs with the capability to operate or start a business activity.
- Valid CNIC (Computerized National Identity Card) required.
Application Process
The application process for PSPA Interest-Free Loans involves submitting a business plan and other necessary documents to the concerned authorities. The application is processed through a transparent and merit-based selection procedure, and successful applicants are notified accordingly.