Microfinance is defined as financial services for the

poor and low income clients offered by different

types of service providers
Microfinance

Akhuwat is Pakistans largest interest free
microfinance organization which envisions a poverty
free society built on the principles of compassion and
mutual support.


Akhuwat


In 2001 the idea of Akhuwat was presented before a
group of friends at the Lahore Gymkhana. During the
conversation, charging of exorbitant interest rates on
microfinance programs aimed at poverty alleviation was
being criticized. The idea of initiating an interest free
successful microfinance program was brought forth as a
challenge and at that point, no one present foresaw the
shape this experiment would eventually take. One of the
friends pledged a donation of ten thousand rupees, while
another friend, Dr. Amjad Saqib, took it upon himself to
utilize that donation as an interest free loan.
History:

A poverty free society built on the principles of
compassion and equity.

About Akhuwat:
Akhuwat was established in 2001 with the objective
of providing interest free microfinance to the poor so
as to enhance their standard of living.
Vision:


Interest-free microcredit: Akhuwat provides the
economically poor with interest free loans so that
they may acquire a self-sustaining livelihood. It also
provides the skills and support they need to
actualize their full potential and abilities
GUIDING PRINCIPLES
OF AKHUWAT

The spirit of volunteerism that Akhuwats
management and its team members exhibit is
indicative of the success Akhuwat achieved within a
short span of time.

Spirit of volunteerism:


Since its inception Akhuwat has solely relied upon the
philanthropists in extending its services to the
community. However, in order to fulfill the increased
credit needs of its ever-increasing clientele it is now
willing to work with the international donors as well.

Reliance on philanthropy:


An important and novel idea associated with
individual loans is the use of the local
mosque/church infrastructure as the center for loan
disbursement and as an avenue for community
participation.
Linkages with Mosque
and Church:

Akhuwat has employed a credit plus approach by
introducing the idea of social guidance for its credit
beneficiaries. The purpose of this approach is to help
borrowers flourish their small enterprises so that
they can lead socially healthier lives than before.
Credit Plus approach:

Akhuwat is governed by a Board of seventeen
members, consisting of philanthropists.
The Board meets quarterly to review operations and
take policy decisions. Another salient responsibility
of the board is to provide marketing services for
Akhuwat and mobilize funds for loans. An Executive
Committee consisting of three members meets every
month for reviewing all administrative and
operational issues of the organization.
Organizational Structure


Cost Structure
Interest : zero

Loan Processing Fee: zero

Profit : zero

Application Fee : Rs. 100


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FAMILY ENTERPRISE LOAN
LIBERATION LOAN
EDUCATION LOAN
HEALTH LOAN
EMERGENCY LOAN
HOUSING LOAN
MARRIAGE LOAN
SILVER LOAN

Akhuwat Microfinance
Products