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Established in 2010, Akhuwat works to alleviate poverty through Qarz-e-Hasna – micro-lending without interest. We believe that people living in poverty want the chance to uplift themselves. Because no one deserves to be dependent on handouts. And because handouts aren’t sustainable.
At Akhuwat, we’ve set a new precedent among Muslim charities by enabling donors to fund Qarz-e-Hasna advances. When our beneficiaries pay back the capital they’ve borrowed, in affordable monthly instalments, funds can then be lent over and over again to others in need. The Qarz-e-Hasna we provide is always repaid without interest, as per the Islamic standard which firmly forbids Riba – usuary.
To create a poverty-free society built on the principles of compassion and equality. To alleviate poverty and empower socially and economically marginalised families through interest-free micro-finance. To empower underprivileged communities by fostering entrepreneurial potential, skills development, capacity building and social guidance.
Akhuwat provides economically disadvantaged families with interest-free loans to help them improve their livelihoods or start businesses to sustain themselves. It also provides the skills, professional guidance and support they need to actualise their full potential and abilities.
The funds collected for Akhuwat UK are used solely for the purpose of disbursing interest-free loans to the unprivileged in Pakistan. We’re also raising funds for our upcoming project, Akhuwat University, which will provide affordable education to the needy students.
In 2001, a group of friends, at the Lahore Gymkhana, came up with a revolutionary idea: an organisation that could help people out of poverty through micro-lending without interest. These friends were critical of standard MF programmes, that claimed to assist the poor but charged exorbitant interest rates, trapping borrowers into never-ending repayment plans.
Initiating a successful micro-lending programme without interest had never been done before in Pakistan. No one knew exactly how it would work, but one of the friends pledged 10,000 Pakistani rupees to start it off. Another friend, Dr Amjad Saqib, decided to put the donation to use by lending it out so that only the capital would be paid back without interest. This is how Akhuwat’s Qarz-e-Hasna, our core programme, was born.
Akhuwat gave its first amount of 10,000 Rupees (approximately £40) to a widow who was striving to earn a living through honourable means. She wasn’t looking for charity; she only wanted a helping hand. The money helped her boost her small business and increase her income. Whereas before her family could only afford to eat one meal a day, now she could feed her children two meals. The widow repaid the capital amount within six months. She reinforced our belief that when we help the poor with trust and respect, they exhibit unshakable integrity.
The success of Akhuwat’s first Qarz-e-Hasna brought in more donations. And that group of friends became convinced that their venture into Islamic lending (without interest) was viable. They were to become Akhuwat’s first Board of Governors, and Dr. Amjad Saqib became our first Executive Director.
Akhuwat marked the beginning of a new chapter in lending – one where only the capital is repaid, without any interest! One that found its inspiration not only in economic viability but in the Islamic spirit of compassion and generosity.
Akhuwat officially began operations on the 26th of March 2001. In early April, of the same year, two more Qarz-e-Hasna of 10,000 Pakistani Rupees were given out. From then on, we’ve seen the ever-growing success of our Islamic Qarz-e-Hasna programme through the lives we’ve helped to improve.
We’ve provided a staggering five million Qarz-e-Hasna, since our inception, totalling 155 billion Pakistani Rupees. To date, we’ve enjoyed a total recovery rate of 99%. This is the highest return rate in the world!
At Akhuwat, Qarz-e-Hasna is our core programme. But to tackle poverty on all fronts, we also run other development programmes. These include:
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