1

1.
2.

Inspiration :
Muakhat-a-Madina
Assumptions:

People who want to give to others

Poor are trust worthy and want to work

3.

Principles:

Interest Free
Mosque
Local philanthropy & Volunteerism
Takers will become givers

INNOVATION 1

Helping someone in need with interest

free loans; these are preferred over
charity.

Cardinal Islamic Practice

Emphasis in Hadith and Practiced by Holy Prophet

Higher virtue than Sadaqat/ Khairat

Akhuwat has not reinvented wheel

It has only institutionalized the individual
practice of Qarz-e-Hasna

Progress
Total Family Loans
Amount Disbursed
Active Loans
Percentage Recovery
Number of Cities
Number of Branches

Total
203,554
Rs. 2.90 Billion
85,422
99.84%
105
153

Cost Structure
Interest

zero

Loan Processing Fee:

zero

Profit

zero

Application Fee

Rs. 100
7

INNOVATION 2

Akhuwat uses local mosque or church

infrastructure as the center for loan
disbursement. This provides an
avenue for:
Community participation
Raising awareness
Cuts organizational costs
Ensures transparency and
Accountability.
9

A Loan Disbursement Event in a Mosque

A Loan Disbursement Event in a Mosque

A Loan Disbursement Event in a Mosque

A Loan Disbursement Event in a Mosque

Akhuwat Event in a Mosque (Chiniot)

Akhuwat Event in a Mosque (Lahore)

Akhuwat Event in a Mosque (Lahore)

Akhuwat Event in a Mosque (Lahore)

Akhuwat Event in a Mosque (Mithan Kot)

Akhuwat Event in a Mosque (Rajan Pur)

Akhuwat Event in a Mosque (Choti D.G Khan)

Awareness Event in a Mosque

A Loan Disbursement Event in a Mosque

22

A Loan Disbursement Event in a Mosque

A Loan Disbursement Event in a Mosque

24

INNOVATION 3

Akhuwat does not discriminate on the basis

of Male or Female. It visualizes family as a
basic unit in a society. The loan application
is jointly signed by male and female heads of
the family.

26

INNOVATION 4

Since its inception, Akhuwat has relied

upon local philanthropists. Akhuwats
source of funding is:
Individual donors
Institutional donors
Borrowers become donors
28

Year

Amount (in PKR)

Year

Amount (in PKR)

2001-02

1.5 M

2006-07

17.7 M

2002-03

1.8 M

2007-08

23.2 M

2003-04

7.1 M

2008-09

36.1 M

2004-05

10.9 M

2009-10

108 M

2005-06

28.3 M

2010-11

127 M

2011-12

95 M

29

Helping our poor is our responsibility.

A pool of more than 1000 donors.

Donated amount ranges from PKR 10,000 to 10 million.

Donation Pool has exceeded Rs. 500 million

Developing working relations with International Donors

30

INNOVATION 5

The spirit of volunteerism is the hallmark of

Akhuwats operations. It is a key factor for the
success and sustainability. Many people extend
their valuable time, money and other resources
free of cost.
More than 1000 registered volunteers
Involvement of Civil Society, Private Sector, Expatriates &
Experts

32

Akhuwat volunteers with Ex-Governor Punjab Lt. Gen (rtd) Khalid

Maqbool at a Certificate distribution event

33

Akhuwat volunteers at a fund raising event

34

Volunteers at Akhuwat Entrepreneurship Awards 2009

35

Volunteers at Akhuwat Funds Mobilization Event

36

It is civil society at best

A Fund Raising Event

37

Volunteerism is
replication of
Muakhat-a-Madina
38

INNOVATION 6

Our borrowers are our donors as well

Small Donation boxes are placed at work places
Borrower contributes Rs. 2 to Rs. 5 daily.
More than 50,000 active borrowers
It is not compulsory
Staff also donates
Journey towards Sustainability

40

Yes! I am a borrower but a donor too!

41

Donation box at a borrowers shop

Month

July
August
September
October
November
December
January
February
March
April
May
June
Total

Amount

(in PKR)

1,406,360
1,488,919
1,418,952
1,396,203
1,418,743
1,622,505
1,897,075
2,130,348
2,616,181
2,851,965
2,765,891
3,049,594
24,062,736

43

INNOVATION 7

Akhuwat has used credit plus approach by introducing the idea

of social guidance for its credit beneficiaries to help them
flourish their small enterprises and improve their standard of
living. It focuses on Education, Health, Environment, Local Laws
and ethical business practices

45

INNOVATION 8

Branch Offices in Mosque

Farshi Floor Seating

Training in Mosque

No Car/ Jeep

Banker on bike

No Tea/ eatables
47

Staff Training Event in Model Town Branch

48

Staff Training Event in Model Town Branch

49

Staff Training Event in Model Town Branch

50

Staff Training Event in Mosque

51

Executive Director and Akhuwat Staff in Township Branch, Lahore. 52

Collateral
Finance

Microfinance
Qarz-e-Husn
Zakat

50%

25-30%
15-20%
5%

53

Malcolm Harper
Chairman
Micro-Credit Ratings International

Mr. Shoaib Sultan Khan

Chairman
Rural Support Program Network
(RSPN)

55

ACTIVITY
Dialogue in the mosque
Establishment of an office in mosque
Programme Introduction
Receive Applications
Social Screening
Economic Appraisal
Site Visit
Guarantors interview
Finalization of documents/case
Approval of case by loan committee
Cheque preparation
Disbursement of cheque/social guidance
Fortnightly visits / monitoring
Recovery Deposit/social guidance
Subsequent Visit/monitoring
Second Loan

LOCATION
Mosque/Church
Mosque/Church
Mosques/Church
Office / Mosques
Place of residence
Market / Mosques
House/Market
Mosque
Mosque
Mosque
Office
Mosque / Church
Business place
Mosque / Follow-up
Market
Office / Record

Address: 382, Block 15, Sector B-1, Township

Tel: +092 0423 5122743 Mob: +092 0333 4323631, 0300 4609807, 0300
8420495
Email: akhuwatinfo@yahoo.com, amjadsaqib1@gmail.com,
contact@akhuwat.org.pk