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Freedom Loan (Interest Free)

What is Freedom Loan?

A Freedom Loan is a Loan where no interest is paid by the borrower


Provide Freedom Loans to poor families to fulfill their productive economic needs


Poverty is the state of human beings who are poor i.e. they have little or no material means of surviving—little or no food, shelter, clothes, healthcare, education, and other physical means of living and improving one’s life. Some definitions of poverty, are relative, rather than absolute, poverty reduction would not be considered to apply to measures which resulted in absolute decreases in living standards, but technically lifted people out of poverty. Poverty alleviation also involves improving the living conditions of people who are already poor.

A saying of the Prophet (Peace be upon him) forcefully drives home the central message of Islam regarding poverty: “Poverty is almost like disbelief in God”. On another occasion the Prophet (Peace be upon him) is reported to have said “There is no asceticism in Islam”. Islam views poverty to be a curse to be eradicated through productive efforts unlike some world religions and philosophies that celebrate asceticism.

DEEP Foundation always have a thrust to alleviate poverty by following Shariah Comliant financial services for vulnerable community. For this purpose in addition to its Islamic services DEEP Foundation launched another service i.e “Interest Free Loan.  Under this service DEEP fulfill the social needs of community also, especially protect community from Money Lenders who played with the needs of poor. Majority of the times community borrowed loan from money lenders on high interest rates to fulfill their emergency needs. Now Community have the source to borrow small Riba free loans from DEEP.

Freedom Loan (Interest Free)

Service Name Purpose IFLLimit IFL Period Group Size Payment frequency Security
Freedom Loan To fulfill the social needs of poor 5,000 3 Month 10 – 15 Bi-weekly Group Social Guaranty


DEEP members receive life Takaful coverage for themselves. The Takaful pays off DEEP’s outstanding debt in case of Member’s death.

Target Members

The Target member of this Service is the poor. Islamic Financial Service of DEEP makes the poor more productive.


  1. DEEP Foundation offer this facility to a female member of the family
  2. The household consisting of 7 to 8 members
  3. Should have a monthly income from 6, 000 to 8, 000
  4. Should have the sufficient knowledge and experience of the business
  5. Should be resident of same Village or city
  6. Member & her family members social behavior & positive role is essential in the community

Criteria of Membership

  1. Member & her husband should have good moral character
  2. Member owning own home should be living there for one year while the member renting homes should be living there for two to three years
  3. Member’s family & guarantor consent is essential for taking the facility
  4. All members of group households should be personally known to them
  5. Divorced, widow, unmarried women with the age of 40 years minimum can be a member
  6. Member’s age should range from 18 to 58

Criteria for Repeat Members

  1. Should have the good track record in 1st IFL cycle
  2. Recovery should be 100%
  3. Attendance should be 85 % in the group meetings

Documents Required

  1. 2 photo copies of CNIC of the member & her husband or head of the family
  2. 2 photo copies of CNIC of guarantors in case of rented member
  3. Two pictures of a members & her husband or head of family jointly
  4. Two paid utility bills for last two months
  5. Receipts of business

Loan Utilization

DEEP members can utilize the loan for the following purposes:

  1. For new Business
  2. For the expansion of Existing Business
  3. For diffusing losses in business
  4. Health care expense
  5. For Education (for the payment of Children school or college fee)
  6. To repay the debt to Money lenders
  7. Machinery repairs
  8. Motor vehicle repair
  9. Veterinary expense
  10. For Marriage
  11. For any kind of Emergency occur in life

Operation Information

Operational Information

FY 2014

Total no. of Branches  1
Total no. of Districts  1
Total no. of Freedom Loan Member’s (Cumulative)  57
Number of Disbursement (Cumulative) 88
Amount Disbursed (in PKR) (Cumulative) 4,40,000
Amount Disbursed (in US$) (Cumulative) 4,444 approx.

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