Khud Kafalat Loan Scheme 2022 Apply Now

Khud Kafalat Loan Scheme

Khud Kafalat Loan Scheme: To overcome the massive unemployment resulting from the effect of Terrorism, Devastating Floods and Economic Recession and to facilitate and promote entrepreneurship in order to generate economic activities in the province.

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To Facilitate the Government of Khyber Pakhtunkhwa in its commitment to provide easy access to credit on soft terms in order to build a solid base for poverty eradication and employment generation in the province.

Target Group:
Unemployed youth
Small Traders
Female entrepreneurs
New entrants having skill but not having sufficient finances to start their own business.
Skilled workers
Trainees from skill development institutes interested in starting their own businesses.
Low income entrepreneurs who are specially qualified / skilled and experienced or women trained in Art or Craft and other Vocational skills

Entrepreneurs who are engaged in manufacturing, processing, preservation of food and services such as Handloom Weaving, Handicrafts, Garments etc in Villages and small towns.

Feasible Traders:
Mineral and mineral based activities
Dairy, livestock and poultry farming
Furniture and wood related activities
Agriculture related business
Light engineering or metal related businesses
Small shops
Service Providers like beauticians, tailors, electricians, shoemakers etc.

Also Check: JS Bank Loan Scheme

Also Check: Digital Loan in Pakistan – Finja Loan

Salient Features of the Scheme:
Launching Date: 7.11.2013

Loan Size:
Rs.  50,000   to  Rs.  200,000

Mark-up Rate



3 Years

Grace Period

3 Months

Recovery Mode

Monthly Installment




Special 2%


Two Personal Guarantees

Eligibility Criteria:
I. Applicant Should Be
A Permanent Resident of Khyber Pakhtunkhwa
Having a Valid Computerized National Identity Card
Age limit: 18 to 50 years
Not an Employee of any Government or Semi-Government or Autonomous body
Not a regular student
Not availing loan from any other Bank / DFI or any other institution
Not a loan defaulter

Two guarantors are required and at least one guarantor shall be a Provincial Government employee
Defaulter of any financial institution can not guarantee any loan
One person can guarantee only 2 loans

IV. Approval / Disbursement Process
Receipt of Application Forms at Field Office
Assessment / Verification by Field Staff
Evaluation and Decision at the BOK Head Office (Approvals / Declines / Deferrals)

Opening of Bank account
Documentation at Branch Level
Monitoring & Recovery

II. Guarantor’s Eligibility
Members of chamber of commerce & trade
Office bearers of recognized trade associations
Reputable professionals like Doctors, Engineers,
Principal / Vice Principal/ Owners of a private education institution
Any Notable Person of the Village / Mohallah with verifiable income
Provincial Government regular employees

II. Required Documents
Prescribed Application Form (Duly Filled in)
Valid CNIC Copy of Applicant & Guarantors
Passport Size Photos of Applicant & Guarantors (Females are exempted)
Certificate of training or proof of the skill

Salary Slip & letter of Verification (where Guarantor is a Government Servant)
Proof of Income from guarantors

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