how to get a loan from akhuwat

What is the basis of akhuwat and how to get a loan from akhuwat

Akhuwat Foundation is a Microfinance Institution (MFI), which provides money to the poor

by making small business plans.

Unlike other Microfinance institutions, which offer loans at a usable interest rate, the Akhuwat Foundation operates on the Islamic policy of providing interest-free loans (Qarz e Hasana).

Dr. Amjad Saqib, a retired Pakistani public services manager, founded the foundation in 2001 with the aim of fighting poverty based on religious and social norms.

The concept has proven to be successful and the organization is growing continuously. The most interesting fact about the foundation is that it has a recovery rate of 99.85%.

"Akhuwat" is an Arabic word meaning 'brotherhood'; refers to the concept of the 14th century earlier of the Islamic brotherhood between the Ansar and the Muhajireen who sacrificed their wealth to one another. Amjad Saqib began his journey by lending an elderly woman a sum of 10,000 by starting a sewing business.

From there the concept developed and now the foundation is MFI leading Pakistan with hundreds of branches across the country. In line with the provision of loans, the organization is committed to promoting education, health and other social services.

The Akhuwat Foundation takes loans and donations from a community-funded unit and pays them among the poorest of the poorest businesses.

Not only does it provide financial assistance but the organization's expert team helps the borrower to make their business ideas a reality. The organization has been able to support itself because its operating costs are very low. Instead of building well-paying offices, like other MFIs, Akhuwat works in simple offices and places of worship, where, there is no furniture and no air conditioning.

Instead of keeping a car pool, its operating officer uses motorcycles. Most of its employers volunteer their time and take donations from their creditors. In some cases, these contributions are as small as one pound a day.

The organization's leadership goal is to help people in need without discrimination. To date, the organization has provided 4.5 million loans, reaching 128 billion rupees, to 3 million families.

To get a loan from the Akhuwat Foundation one needs to go through the following stages:

 Contact the nearest Unit Manager to submit the application and the required documents.

 After submitting the application, the Unit Manager will visit the borrowed premises to collect information and conduct a public survey of the applicant.

Team The credit provider will then evaluate the applicant's business idea and assess the feasibility.

 The application will be submitted to the Area Manager who will conduct another cycle of social and business evaluation.

 In the event that each person borrows money, the applicant is required to provide two guarantees, while in the event that the party lends the applicant he or she will act as a guarantor to each other.

Will The application will be considered by the Loan Approval Committee, led by the Area Manager.

 If the loan is approved, the Loan Credit Committee will ask the head office to disburse the funds.

 Loans are issued between lenders in mosques or churches with payment providers. The whole process takes six to seven weeks.

 In order to repay the loan the borrower needs to file a monthly installment on the 07th of each month. If the borrower fails to file a installment by the 10th of the month, the Unit Manager will remind him or her of his or her commitment or ask the guarantor how he or she affected the borrower.