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1. Inspiration : Muakhat-a-Madina

2. 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

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INNOVATION 1

Cardinal Islamic Practice

Emphasis in Hadith and Practiced by Holy Prophet

Higher virtue than Sadaqat/ Khairat

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Helping someone in need with interest

free loans; these are preferred over

charity.

Akhuwat has not reinvented wheel………

It has only institutionalized the individual

practice of Qarz-e-Hasna

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Progress Total

Total Family Loans203,554

Amount Disbursed Rs. 2.90 Billion

Active Loans 85,422

Percentage Recovery 99.84%

 Number of Cities 105

Number of Branches 153

Cost Structure

Interest : zero

Loan Processing Fee: zero

Profit : zero

Application Fee : Rs. 100 7

INNOVATION 2

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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.

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

22A Loan Disbursement Event in a Mosque

A Loan Disbursement Event in a Mosque

24A Loan Disbursement Event in a Mosque

INNOVATION 3

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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.

INNOVATION 4

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Since its inception, Akhuwat has relied

upon local philanthropists. Akhuwat’s

source of funding is:

• Individual donors

• Institutional donors

• Borrowers become donors

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Year Amount (in PKR)

2001-02 1.5 M

2002-03 1.8 M

2003-04 7.1 M

2004-05 10.9 M

2005-06 28.3 M

Year Amount (in PKR)

2006-07 17.7 M

2007-08 23.2 M

2008-09 36.1 M

2009-10 108 M

2010-11 127 M

2011-12 95 M

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• 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

INNOVATION 5

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The spirit of volunteerism is the hallmark of

Akhuwat’s 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

•Universities: UCP, UMT & LUMS

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Akhuwat volunteers with Ex-Governor Punjab Lt. Gen (rtd) Khalid Maqbool at a Certificate distribution event

34Akhuwat volunteers at a fund raising event

35Volunteers at Akhuwat Entrepreneurship Awards 2009

36Volunteers at Akhuwat Funds Mobilization Event

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…It is civil society at best

A Fund Raising Event

Volunteerism is replication of

Mua’khat-a-Madina

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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

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41Yes! I am a borrower but a donor too!

Donation box at a borrower’s shop

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Month Amount (in PKR)

July 1,406,360August 1,488,919

September 1,418,952October 1,396,203November 1,418,743December 1,622,505January 1,897,075February 2,130,348March 2,616,181April 2,851,965May 2,765,891June 3,049,594Total 24,062,736

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

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INNOVATION 8

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Branch Offices in Mosque

“Farshi” Floor Seating

Training in Mosque

No Car/ Jeep

Banker on bike

No Tea/ eatables

48Staff Training Event in Model Town Branch

49Staff Training Event in Model Town Branch

50Staff Training Event in Model Town Branch

51Staff Training Event in Mosque

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

Collateral Finance

Microfinance

Qarz-e-Husn

Zakat

50%

25-30%

15-20%5%

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Malcolm HarperChairman

Micro-Credit Ratings International

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Mr. Shoaib Sultan KhanChairman

Rural Support Program Network (RSPN)

ACTIVITY LOCATION Dialogue in the mosque Mosque/Church Establishment of an office in mosque Mosque/Church Programme Introduction Mosques/Church Receive Applications Office / Mosques Social Screening Place of

residence Economic Appraisal Market /

Mosques Site Visit House/Market Guarantor’s interview Mosque Finalization of documents/case Mosque Approval of case by loan committee Mosque Cheque preparation Office Disbursement of cheque/social guidance Mosque / Church Fortnightly visits / monitoring Business place Recovery Deposit/social guidance Mosque / Follow-

up Subsequent Visit/monitoring Market Second Loan Office / Record

Address: 382, Block 15, Sector B-1, TownshipTel: +092 0423 5122743 Mob: +092 0333 4323631, 0300 4609807, 0300 8420495

Email: akhuwatinfo@yahoo.com, amjadsaqib1@gmail.com, contact@akhuwat.org.pk