Khud Kafalat 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.


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.
  • Artisans
  • 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
  • Gems
  • Dairy, livestock and poultry farming
  • Horticulture
  • Handicrafts
  • Fisheries
  • Tourism
  • Furniture and wood related activities
  • Agriculture related business
  • Light engineering or metal related businesses
  • Small shops
  • Traders
  • Service Providers like beauticians, tailors, electricians, shoemakers etc.

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
  • Disbursement
  • 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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