BISP June 2025 Alert: Loan Defaulters Blocked from Payments – How to Avoid Losing Benefits

The Benazir Income Support Programme (BISP) has introduced a major change in its payment system to crack down on beneficiaries who fail to repay loans. Under the new rule, any beneficiary marked as a loan defaulter will automatically have their BISP payments blocked without prior notice.

What’s the New Change?

A digital filter has been integrated into the BISP system to check whether beneficiaries have defaulted on bank loans or microloans. If the system detects an unpaid loan linked to a beneficiary’s CNIC, their payments will be stopped immediately.

Important Warning for Beneficiaries

BISP has issued a clear warning:

• “If you have taken a loan from JazzCash, Easypaisa, or any bank and haven’t repaid it, clear your dues now.”
• Delaying repayment could result in permanent loss of BISP benefits.

How the Filter Works

• The system automatically scans loan records linked to beneficiaries’ CNICs.
• If a loan is overdue, the CNIC is flagged, and payments are blocked.
• “No officer or department can unblock the payment unless the loan is cleared,” officials confirmed.

Who Will Be Affected?

The new rule applies to:

• Current BISP recipients with unpaid loans.
• Those who missed loan repayment deadlines.
• Beneficiaries who borrowed from mobile wallets (JazzCash, Easypaisa) or banks.

Frequently Asked Questions

Why was this filter introduced?
Officials stated it ensures “only honest and responsible citizens receive BISP support” and prevents misuse of funds.

How will I know if I’m blocked?

• Payments may suddenly stop, or you may receive an SMS notification about ineligibility due to loan default.

What if I’ve taken a loan?

• “Repay the loan immediately.” Once cleared, the system may reinstate payments after verification.

Will I be permanently removed?

• Not necessarily. Clearing the debt could restore eligibility, but delays risk long-term suspension.

Final Words

BISP has called this a “serious step toward transparency and fairness.” Beneficiaries are urged to repay loans on time—failure to do so could mean losing critical financial support.

“If you have any outstanding loans, settle them now to avoid payment cuts,” the program warned.