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Interest-Free Loan (Qarz-e-Hasna) Program – 2025
Interest-Free Loan
The Interest-Free Loan (Qarz-e-Hasna) Program is one of Tooba Foundation’s flagship initiatives, designed to promote self-reliance, financial dignity, and sustainable economic empowerment among underprivileged individuals. The program provides Shariah-compliant, interest-free financial assistance to people who lack access to formal banking systems and are often forced to rely on exploitative interest-based borrowing.
In 2025, Tooba Foundation further strengthened this initiative through a structured, transparent, and ethical framework. The program focuses not only on short-term relief but on long-term empowerment, enabling beneficiaries to stabilize their financial conditions and move toward independence without falling into debt traps.
Project Objectives
The key objectives of the Qarz-e-Hasna Program include:
Promoting economic self-sufficiency among low-income individuals
Providing interest-free financial support in accordance with Islamic principles
Supporting income generation, education, healthcare, and household stability
Reducing dependency on exploitative and interest-based lenders
Encouraging responsible repayment and strengthening community trust
Key Features
- Total amount disbursed: PKR 30,345,000
- Total beneficiaries supported: 770 individuals
- Loans provided strictly on an interest-free (Qarz-e-Hasna) basis
- Transparent and need-based beneficiary selection process
- Loans utilized for medical needs, small businesses, education, marriage, construction, and financial liberation
- Strong focus on dignity, confidentiality, and responsible repayment
Loan Distribution by Purpose – 2025
| Purpose | Number of Persons | Amount (PKR) |
|---|---|---|
| Medical | 17 | 645,000 |
| Business | 405 | 15,800,000 |
| Education | 278 | 11,315,000 |
| Liberation | 32 | 1,195,000 |
| Marriage | 24 | 890,000 |
| Construction | 14 | 500,000 |
| Total | 770 | 30,345,000 |
Purpose-Wise Impact Analysis
Business Loans
A major portion of the loans was allocated to small business development, enabling 405 beneficiaries to start or strengthen income-generating activities such as shops, vending, services, and home-based enterprises.
Impact: Improved household income, reduced unemployment, and sustainable livelihoods.
Education Loans
Education support was provided to 278 individuals, covering school fees, college expenses, and educational materials.
Impact: Prevented dropouts, ensured academic continuity, and strengthened long-term human capital.
Medical Loans
Medical assistance supported individuals facing urgent healthcare needs, including treatments, surgeries, and medications.
Impact: Timely medical care without asset sales or interest-based borrowing, reducing health and financial stress.
Liberation Loans
Loans were extended to individuals trapped in financial distress or exploitative obligations.
Impact: Restored financial control, dignity, and freedom from long-standing burdens.
Marriage Loans
Marriage-related loans supported families facing social pressure and financial hardship.
Impact: Enabled simple, dignified marriages without excessive financial strain.
Construction Loans
Support was provided for minor house repairs and basic structural improvements.
Impact: Improved housing safety and stability for vulnerable families.
Overall Impact
The Qarz-e-Hasna Program created meaningful and measurable change:
Improved financial stability and confidence
Increased income-generating capacity
Reduced reliance on interest-based lenders
Enhanced access to education and healthcare
Strengthened community trust in ethical financial systems
Promoted responsibility and sustainable financial behavior
Many beneficiaries successfully stabilized their lives and moved toward self-sufficiency, reflecting the program’s effectiveness and sustainability.
Conclusion
The Interest-Free Loan (Qarz-e-Hasna) Program – 2025 stands as a sustainable, ethical, and impact-driven financial support model implemented by Tooba Foundation. By addressing real community needs through interest-free assistance, the program not only alleviated immediate hardship but also empowered individuals to build stable, dignified, and independent futures.
This initiative reinforces Tooba Foundation’s commitment to poverty alleviation, Islamic social finance, and long-term community development, making it a cornerstone of the Foundation’s welfare strategy.
