What is an Interest-free loan from overseas ?
A zero-interest loan from overseas is a financial arrangement in which an individual, business, or government obtains funding from a foreign source without having to pay interest on the borrowed amount.
Do zero-interest loan from overseas exist ?
Yes, zero-interest loans from overseas do exist, but they are relatively rare and usually tied to specific contexts and they are most commonly offered by international development institutions, foreign governments and philanthropic organizations.
In which country can I find zero-interest loans ?
Here’s a snapshot of where truly zero-interest loans (interest-free financing) are available—focusing on nonprofit, microfinance, and development-supported programs rather than standard bank loans:
Notable Zero-Interest Loan Providers & Programs
1. Kiva (Global)
A renowned nonprofit peer-to-peer microloan platform offering 0% interest loans, particularly for entrepreneurs and small businesses. Kiva U.S. also runs a 0% interest pilot program for domestic borrowers in the U.S., relying on community-supported trustee endorsements.
2. Akhuwat Foundation (Pakistan & Global Network)
A leading nonprofit in Pakistan, Akhuwat issues interest-free microloans (called Qarz‑e‑Hasna) to millions of families, supporting poverty alleviation. It operates using religious infrastructure to minimize overhead and is expanding globally.
3. Zidisha (Peer-to-Peer Microfinance)
An innovative P2P lending platform offering zero-interest loans to underserved entrepreneurs—especially in developing countries—by minimizing intermediaries and leveraging direct lender-borrower connections.
4. Akhuwat’s Microfinance Model
Operating through mosques and community centers, Akhuwat lends without charging any interest, aligning with Islamic finance principles and emphasizing social justice. Borrowers repay only the principal.
Broader Institutional Programs
- World Bank’s IDA (International Development Association) offers zero or very low interest loans and grants to low-income countries, via national governments—not individual borrowers.
- The IMF’s Poverty Reduction & Growth Trust provides concessional lending to governments, again not to private individuals.