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At Akhuwat, our loans are relatively small, but their impact on the lives of the poor are huge. Depending on the loan product, they range from PKR10,000 to PKR100,000. The capital injection uplifts local economies and has a positive ripple effect in poor communities.
Today, our unique model is changing the way people look at microfinance. It’s been studied at universities and adopted by other NGOs. Our Executive Director and board members are often invited to global platforms to share Akhuwat’s success story.
We’ve been hosted by the United Nations, Oxford University, Manchester University, and many other international institutions. Board members have also presented lectures and facilitated panel discussions at various Islamic conferences.
At Akhuwat, the amounts we lend to our recipients/borrowers are relatively small, but their impact on the lives of the poor are huge. Depending on the Qarz-e-Hasna product, the amounts range from PKR10,000 to PKR100,000. The capital injection uplifts the recipient families and local economies and has a positive ripple effect in poor communities.
Today, our unique model – advancing amounts where only the capital is repaid without any interest – is changing the way people look at micro-lending. Our model has been studied at universities and adopted by other NGOs. Our Executive Director and board members are often invited to global platforms to share Akhuwat’s success story.
We’ve also been hosted by the United Nations, Oxford University, Manchester University, and many other international institutions. Board members have also presented lectures and facilitated panel discussions at various Islamic conferences.
Loan officers provide INFORMATION and assist borrowers in filling out loan APPLICATIONS
The FIRST MEETING is held at the applicant’s home along with his/her peers. We verify their application information a second time and obtain additional information to complete the case.
Case officers carry out a SOCIAL APPRAISAL of the applicant (market and reference check). That case officer pays several visits to borrower’s neighbourhood and place of work to verify the information provided in the application form and enquires about his/her reputation and credibility.
The FIRST MEETING is held at the applicant’s home along with his/her peers. We verify their application information a second time and obtain additional information to complete the case.
The case officer will provide necessary guidance to the applicant in their next meeting and assess applicant’s commitment and ability to repay the loan.
The FIRST MEETING is held at the applicant’s home along with his/her peers. We verify their application information a second time and obtain additional information to complete the case.
The case officer will provide necessary guidance to the applicant in their next meeting and assess applicant’s commitment and ability to repay the loan.
Conducted by Branch Manager with 3 borrowers at a time, along with their families at religious institutions. The branch manager reminds borrowers of their moral obligation to repay the loan. Explains the benefits of repayment – new loans dispersed with loan repayments. The cycle of helping the needy helping themselves continues.
A team of branch and case managers review and assess cases from different regions to ensure standardisation across branches and regions. This also prevents any favouritism potential and discrimination.
Area managers discuss each application with its respective case officer. If all conditions have been met, the area managers grant loan approval.
After approval, the borrower is offered Islamic insurance to cover repayment of the loan, in the event of the borrower’s death. This is very beneficial for the family and is recommended.
Loans are usually disbursed collectively to batches of borrowers. We provide borrowers with social guidance and remind them of their moral obligation to repay the loan. In this way, we can continue to help others.
Case officers monitor that the loan is used as approved.
In the event that a borrower fails to pay an instalment, we give them reminders, follow-ups and visits. We provide moral and social guidance and try and address reasons/problems for non-payment as well as possible solutions.
Proceeds from recovered loans are reinvested in the donation pool and used to finance new loans.
Akhuwat
