£80 - Ramadan Ration / One Family, four members
£160 - Ramadan Ration / Two Families, four members each
£100 - Sponsoring 1 Widow / 1 sewing machine
£200 - Sponsoring 2 Widow2 / 2 sewing machine
£160 - Akhuwat Educational Project / monthly support
£350 - Livelihood for 1 Disabled Person
£700 - Livelihood Support for 2 Disabled People
£1900 - Akhuwat Educational Project / annum support
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Give little but
give often

OUR LENDING METHODOLOGY

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.

OUR LENDING METHODOLOGY

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.

FILLING OF FORMS

Loan officers provide INFORMATION and assist borrowers in filling out loan APPLICATIONS

SOCIAL APPRAISAL

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.

FIRST MEETING

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.

BUSINESS ANALYSIS

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.

SECOND MEETING

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.

LOAN RECOMMENDATION COMMITTEE

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.

LOAN APPROVAL COMMITTEEt

Area managers discuss each application with its respective case officer. If all conditions have been met, the area managers grant loan approval.

INSURANCE

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.

DISBURSEMENT

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.

MONITORING

Case officers monitor that the loan is used as approved.

recovery

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.

DONATION POOL

Proceeds from recovered loans are reinvested in the donation pool and used to finance new loans.
COMPLETING APPLICATION FORMS

COMPLETING APPLICATION FORMS

Applicants complete the application form and submit this to our offices together with all relevant documents attached. If everything is in order, the application is assigned to a case officer.

FILLING OF FORMS

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.

SOCIAL APPRAISAL

SOCIAL APPRAISAL

Case officers carry out a SOCIAL APPRAISAL of the applicant (market and reference checks). Thereafter, the case officer pays several visits to the applicant’s neighbourhood and place of work to verify the information provided in the application form and to enquire about the applicant’s reputation and credibility.

SOCIAL APPRAISAL

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.

FIRST MEETING

FIRST MEETING

The FIRST MEETING is held at the applicant’s home along with his/her peers. We verify their information for a second time and obtain additional information to complete the case.

BUSINESS ANALYSIS

BUSINESS ANALYSIS

The case officer will assess the applicant’s commitment and ability to repay the Qarz-e-Hasna, based on the information supplied and gathered during their appraisal and first meeting.

SECOND MEETING

SECOND MEETING

The second meeting with the applicant is conducted by the branch manager with 3 applicants at a time, along with their families. These meetings are normally held at religious institutions. The branch manager reminds borrowers of their moral obligation to repay the amount borrowed. He/she also explains the benefits of repayment ie. that they can apply for more funds and that more people can benefit from new Qarz-e-Hasna. The cycle of helping the needy helping themselves continues.

RECOMMENDATION  COMMITTEE

RECOMMENDATION COMMITTEE

The Recommendation Committee which includes the branch manager and case officers, review the applications and present their recommendations to the Approval Committee. Branch managers and case officers assess cases from different regions to ensure standardisation across branches and regions. This also prevents any potential favouritism and discrimination.

APPROVAL COMMITTEE

APPROVAL COMMITTEE

Area managers discuss each application with its respective case officer. If all conditions have been met, the area managers grant the approval.

INSURANCE

INSURANCE

After approval, the borrower is offered Islamic insurance to cover repayment of the funds, in the event of the borrower’s death. This is very beneficial for the family and is recommended.

DISBURSEMENT

DISBURSEMENT

Funds are usually disbursed collectively to batches of borrowers. We provide borrowers with social guidance and remind them of their moral obligation to repay their Qarz-e-Hasna. In this way, we can continue to help others.

MONITORING

MONITORING

Case officers monitor that the monies advanced are used by recipients as approved.

RECOVERY

RECOVERY

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.

DONATION POOL

DONATION POOL

Proceeds from repaid Qarz-e-Hasna advances are reinvested in the donation pool and used to finance new Qarz-e-Hasna to new borrowers/recipients.

FIRST MEETING

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.

BUSINESS ANALYSIS

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.

FIRST MEETING

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.

BUSINESS ANALYSIS

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.