Interest-Free Education Loan for Study in Pakistan

Interest-Free Education Loan for Pakistan Only

Study in in Pakistan's Leading Universities

Pakistan Education Endowment Fund (PEEF) offers Qarz-e-Hasna, an interest-free educational loan to support talented but financially constrained Pakistani students pursuing Master’s (MS) and Doctoral (PhD) degrees at leading universities within Pakistan.

⚠ Important: This is not a scholarship. The full loan amount must be repaid within 10 years after degree completion. The program offers two loan streams:

📚 Iqbal Loan – For Master’s (MS) students
📚 Jinnah Loan – For PhD students

Key Highlights

Interest-Free Support – Zero interest (no mark-up), Islamic Qarz-e-Hasn
Higher Education Focus – Available for MS and PhD programs only
Study in Pakistan – Support for education at Pakistani universities
Flexible Repayment – Up to 10 years after degree completion
No Service Bond – Freedom to work anywhere after graduation
Higher Income Ceiling – Monthly family income up to PKR 500,000

Investing in National Excellence

Interest free Study Loan for Pakistani Students

While many students can pursue undergraduate education, the cost of Master’s and PhD programs in Pakistan can still be prohibitive for middle-income families. The Program bridges this gap by providing interest-free financial support for advanced degrees, enabling talented students to pursue research and specialized education at Pakistan’s top universities, contributing directly to the nation’s knowledge economy.

Features of Interest Free Study Loan

Advance Education Access

Supporting students for Master's and PhD programs at leading Pakistani universities.

Research & Innovation

Supports advanced research and specialized education in priority fields.

National Development

Builds Pakistan's knowledge economy with highly qualified professionals.

Interest Free Support

Loan provided under Islamic Qarz-e-Hasna principles, with zero interest.

Thematic Areas Under This Program

Artificial Intelligence

Cyber Security

Data Sciences

Information Technology

Economics

Social Sciences

Allied Health Sciences

Natural Sciences

Climate Change

Business

Agriculture

Engineering & Technology

Applicants must meet all of the following conditions to be considered for the Qarz-e-Hasna Loan Program

Basic Requirements:

Pakistani Citizen – Dual nationality is not allowed
Age Limit – Must be between 18 and 45 years at the time of application
Academic Merit – Must have obtained at least 60% marks or a minimum CGPA of 3.5 in the last completed degree
University Admission – Must have secured admission through merit-based process in a Top 25 QS World Ranked University
Approved Program – Degree program must be in an approved thematic area as determined by the competent committee
Financial Need – Must demonstrate financial need, verified through BISP and NADRA
Guarantor Required – Must provide a financially sound guarantor, who is a blood relative, willing to sign the required legal agreements

Additional Preferences

Preference is given to:

Female candidates (50% quota)
Applicants from less developed districts
Candidates from lowest income households
Pakistani nationals already studying abroad in eligible universities who require financial assistance may also apply

Important Notes

This program is an interest-free loan. The selected applicant is legally bound to repay the full loan amount within the prescribed period.
Providing false information may result in immediate disqualification and legal consequences.

PROGRAM DEATILS & TERMS

Please check the details and terms of the program below

Applicants must meet all of the following conditions to be considered

Basic Requirements

Pakistani Citizen – Must be a Pakistani national
Education Level – For MS or PhD programs only
Academic Merit – Minimum 60% marks or CGPA ≥ 3.0 in the last completed degree
Financial Need – Monthly family income ≤ PKR 500,000
Admission Secured – Must have admission or be enrolled in an approved Pakistani university
No Other Scholarship – Must not be availing any other scholarship or loan
Approved Program – Degree must be in an approved thematic area

For MS (Iqbal Loan) Applicants
Completed Bachelor’s degree with required CGPA or marks
Admitted to MS program in an approved Pakistani university
Age typically under 35 years (may vary)

For PhD (Jinnah Loan) Applicants
Completed Master’s degree with required CGPA or marks
Admitted to PhD program in an approved Pakistani university
Age typically under 40 years (may vary)
Research proposal approved by the university

Additional Preferences
Preference is given to female candidates
Preference is given to applicants from less developed districts
Preference is given to candidates from lower-income households within the PKR 500,000 ceiling

Important Notes
This program is an interest-free loan and must be fully repaid within 10 years
Dual nationality holders are not eligible
Providing false information will result in immediate disqualification and legal consequences

Application Process

Step 1: Secure admission in an approved Pakistani university for MS or PhD
Step 2: Verify your family income is ≤ PKR 500,000 per month
Step 3: Gather all required documents
Step 4: Apply online through PEEF website: peef.pk
Step 5: Submit application before deadline
Step 6: Wait for review and verification
Step 7: Attend interview if shortlisted
Step 8: Sign loan agreement if approved

Required Documents

📄 CNIC (front & back)
📄 All academic certificates and transcripts (Bachelor’s & Master’s if applying for PhD)
📄 University admission letter
📄 Domicile certificate
📄 Income certificate or affidavit
📄 Family income proof (salary slips, tax returns, etc.)
📄 Research proposal (for PhD applicants)
📄 Passport-size photographs
📄 Bank account details for disbursement

The Qarz-e-Hasna loan provides:

💵 Tuition Fees – Full or partial coverage based on need and merit
📚 Research Expenses – Support for thesis/dissertation research
📖 Educational Materials – Books, equipment, and lab fees
💳 Living Stipend – Monthly stipend for living expenses (if applicable)

Coverage Duration:

MS Programs: 2 years
PhD Programs: 3-5 years

Understanding Your Commitment

This is a loan, not a grant. You are legally obligated to repay the full amount.

📅 Repayment Duration: 10 years after degree completion
💳 Installments: Equal monthly, quarterly, or annual payments
💰 Amount to Repay: 100% of the loan received (tuition + stipend + research costs)
🔢 Interest: ZERO (Islamic Qarz-e-Hasna principle)

When Repayment Begins

After you complete your degree
Grace period may be provided for job search
Repayment schedule will be determined by PEEF

Payment Options

You can repay through:

Monthly installments (most common)
Quarterly payments
Annual paymentsLump sum payment (if financially able)

LEGAL FRAMEWORK

You will be required to sign legal agreements including:

Loan Agreement – Main terms and conditions
Promissory Note – Your commitment to repay
Post-Dated Cheques (may be required)
Guarantor Documentation (if required by PEEF)

Consequences of Default

If you fail to repay or violate loan terms:
You must refund the entire loan amount immediately
Penalty charges as determined by PAK-EEF
Legal action can be taken for recovery
Credit rating may be affected
Future PEEF programs will be unavailable to you

During your studies, to maintain your loan, you must:

Maintain Academic Performance – Minimum 60% marks or 3.0 CGPA per semester
Regular Enrollment – Cannot take unauthorized leave
Progress Reports – Submit regular academic progress updates
Research Milestones – Meet dissertation/thesis milestones
Conduct Standards – Maintain ethical and professional conduct

After Degree Completion

Begin Repayment – As per agreed schedule
Submit Final Report – Completion documentation to PEEF
Maintain Contact – Keep PEEF updated on employment and address
Honor Commitment – Fulfill all repayment obligations