Productive Zakat with Free-Interest Loan Mechanism

As we know that zakat is an obligation of payment to all moslems over the world in order to reduce and act in poverty alleviation. Basically, zakat is for consumption purpose for the poor and needy people. But currently most zakat institution, especially in Indonesia make zakat as a fund source for productive activities  and help the poor and needy people to grow their own small businesses with zakat funds.