How far can BISP’s small loans take a microenterprise?

The Benazir Income Support Programme (BISP) is known for helping poor families in Pakistan. To help people earn on their own, BISP started a loan scheme called Waseela-e-Haq. This program gives small, interest-free loans to help women and families start small businesses.

What is Waseela-e-Haq?

Waseela-e-Haq gives loans (around Rs. 300,000) to BISP families so they can start their own business. The loan is usually paid back in easy installments over a few years. The main goal is to support women in starting simple businesses from home or in the community.

What Can You Do With This Loan?

Even a small loan can help start basic businesses like:

• A small shop

• Home-based tailoring or embroidery

• Fruit or snack carts

• A small workshop

• A food delivery or catering service

While this amount is helpful, bigger businesses need more investment and experience.

Real Success Stories

Many women have used this loan to start sewing clothes, running beauty parlors, or opening roadside stalls. These small steps helped them earn money and support their families.

When Things Don’t Go as Planned

Not all businesses succeed. Here’s why:

• Loan too small for bigger business ideas

• No business experience, which makes it hard to manage money

• Money used for other needs, like school fees or medical bills

• Fear of not paying back, which stops people from taking a risk

Repayment Problems

Even without interest, some people struggle to repay. This could be due to emergencies, low income, or lack of help in understanding how to repay properly.

What’s Missing? Support and Training

Just giving a loan isn’t enough. People also need:

• Training on money management

• Business planning

• Mentors to guide them

• Peer groups for support

Programs that offer both loans and training often do better.

Will These Businesses Last?

Yes, if the person has:

• A good business idea

• Access to markets and materials

• Basic training

• Support from the program team

• A stable economy

Tips for Borrowers

If you’re thinking about applying, here’s what can help:

• Choose a simple, low-cost business idea

• Plan your budget

• Don’t use the money for personal expenses

• Join training sessions

• Stick to your repayment plan

What Should Policymakers Do?

To make Waseela-e-Haq more helpful, the government could:

• Give more loans to successful borrowers

• Increase loan amounts in expensive cities

• Provide free training before giving loans

• Connect people to business mentors

• Make it easier to find markets and supplies

• Adjust loans with inflation

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