AKHUWATAKHUWATA Qarz e Hasan ProgrammeA Qarz e Hasan Programme

(Interest Free Microfinance)(Interest Free Microfinance)

National Centre of Rural Development,National Centre of Rural Development,IslamabadIslamabad

August 26, 2014August 26, 2014

MISSIONMISSIONTo alleviate poverty by empowering socially To alleviate poverty by empowering socially

and economically marginalized families and economically marginalized families through interest free microfinance and by through interest free microfinance and by

harnessing entrepreneurial potential, harnessing entrepreneurial potential, capacity building and social guidance. capacity building and social guidance.

VISIONVISION

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

OBJECTIVESOBJECTIVES• To provide interest free microfinance services to poor families To provide interest free microfinance services to poor families

enabling them become self reliantenabling them become self reliant• To promote To promote Qarz-e-HasanQarz-e-Hasan as a viable model and a broad-based as a viable model and a broad-based

solution for poverty alleviationsolution for poverty alleviation• To provide social guidance, capacity building and To provide social guidance, capacity building and

entrepreneurial training entrepreneurial training • To institutionalize the spirit of brotherhood, compassion, and To institutionalize the spirit of brotherhood, compassion, and

volunteerismvolunteerism• To transform Akhuwat borrowers into donorsTo transform Akhuwat borrowers into donors• To make Akhuwat a sustainable, growth-oriented and To make Akhuwat a sustainable, growth-oriented and

replicable organizationreplicable organization

Basic PrinciplesBasic Principles

• Re Incarnation of MuwakhatRe Incarnation of Muwakhat• Through Qarz I HasnaThrough Qarz I Hasna• Mosque, Church and TempleMosque, Church and Temple• VolunteerismVolunteerism• Converting Borrower into a DonorConverting Borrower into a Donor

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PROCESS PROCESS • Establishment of a Credit PoolEstablishment of a Credit Pool• Small Loans Small Loans (Qarz-e-Hasan)(Qarz-e-Hasan) to the Poor from Credit to the Poor from Credit

PoolPool• Loans are given to: Loans are given to:

– Start or Expand Business orStart or Expand Business or– Meeting Social Needs Meeting Social Needs

• Increase in Income of PoorIncrease in Income of Poor• Improvement in quality of lifeImprovement in quality of life• Alleviation of PovertyAlleviation of Poverty• A better SocietyA better Society

FEATURES FEATURES • Loans given from Credit Pool are interest free Loans given from Credit Pool are interest free

• Credit Pool create through philanthropy/spirit of Credit Pool create through philanthropy/spirit of

MuakhatMuakhat

• Activities centered in Mosque and ChurchActivities centered in Mosque and Church

• Combination of Volunteerism and necessary Combination of Volunteerism and necessary

compensationcompensation

• Replication instead of expansionReplication instead of expansion

• Our borrowers are our donors as wellOur borrowers are our donors as well

ACHIEVEMENTS IACHIEVEMENTS I• Started in 2001 with a first donation of Rs. 10,000Started in 2001 with a first donation of Rs. 10,000

• Credit Pool now has grown to Rs. 800 MCredit Pool now has grown to Rs. 800 M

• This Pool is a Revolving fundThis Pool is a Revolving fund

• The amount is regularly disbursed and recoveredThe amount is regularly disbursed and recovered

• Cumulative disbursement is Rs. 10 billionCumulative disbursement is Rs. 10 billion

ACHIEVEMENTS IIACHIEVEMENTS II• Total Branches: 300+Total Branches: 300+• Presence in 170 Cities and towns in PakistanPresence in 170 Cities and towns in Pakistan• Total borrowers : 600,000+Total borrowers : 600,000+• Recovery Rate : 99.85 %Recovery Rate : 99.85 %• Staff : 1900 plusStaff : 1900 plus• A new model in Micro FinanceA new model in Micro Finance• Included in the syllabus of many International Included in the syllabus of many International

UniversitiesUniversities• Case StudiesCase Studies

BORROWERS BECOMING DONORSBORROWERS BECOMING DONORS

• Our borrowers are our donors as wellOur borrowers are our donors as well

• Small Donation boxes are placed at work places, homes, carts, etc.Small Donation boxes are placed at work places, homes, carts, etc.

• Borrower contributes Rs. 2 to Rs. 5 daily.Borrower contributes Rs. 2 to Rs. 5 daily.

• More than 300,000 active borrowersMore than 300,000 active borrowers

• It is not compulsoryIt is not compulsory

Future PlansFuture Plans

• Next year disbursement of Rs. 5 BillionNext year disbursement of Rs. 5 Billion• Expansions in all the provinces of PakistanExpansions in all the provinces of Pakistan• Akhuwat University LahoreAkhuwat University Lahore• Replications in the regionReplications in the region

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PROJECTSPROJECTS

• Akhuwat Education ServicesAkhuwat Education Services• Akhuwat Health ServicesAkhuwat Health Services• Akhuwat Institute Social Enterprise & ManagementAkhuwat Institute Social Enterprise & Management• Akhuwat Incubation CentreAkhuwat Incubation Centre• Khawaja Sira Rehabilitation ProgrammeKhawaja Sira Rehabilitation Programme• Akhuwat Cloth BankAkhuwat Cloth Bank• Make a Dream (MAD)Make a Dream (MAD)

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Sister OrganizationsSister Organizations

• Fountain HouseFountain House• Punjab Trust for DisabledPunjab Trust for Disabled• KawishKawish• Punjab Education Endowment Fund PEEFPunjab Education Endowment Fund PEEF• TABA FoundationTABA Foundation

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ReplicationsReplications

• AlkhidmatAlkhidmat• Sialkot Chambers of CommerceSialkot Chambers of Commerce• Al- Islah Trust RawalpindiAl- Islah Trust Rawalpindi• Haral bunyad with BorjanHaral bunyad with Borjan• AsasaAsasa• Rashidabad Memorial Trust Tando Allah YarRashidabad Memorial Trust Tando Allah Yar• Sajhoro KhairpurSajhoro Khairpur• Total 17 in numberTotal 17 in number

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Collaborations withCollaborations with• Government of Pakistan PMIFLGovernment of Pakistan PMIFL• Government of Punjab CMSESGovernment of Punjab CMSES• Government of Gilgit BaltistanGovernment of Gilgit Baltistan• NAVTTCNAVTTC• TEVTATEVTA• Imran khan FoundationImran khan Foundation• TCF/ Hunar FoundationTCF/ Hunar Foundation• Aman FoundationAman Foundation• Rural Support Programme Network RSPNRural Support Programme Network RSPN

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BORROWERSBORROWERS

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DISBURSEMENTDISBURSEMENT

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A Loan Disbursement Event in a Mosque

3030A Loan Disbursement Event in a Mosque

3131A Loan Disbursement Event in a Mosque

3232A Loan Disbursement Event in a Mosque

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A Loan Disbursement Event in a Mosque

A Loan Disbursement Event in a Mosque

Awareness Event in a Mosque

3636Akhuwat Event in a Mosque (Chiniot)

Akhuwat Event in a Mosque (Rajan Pur)

A Loan Disbursement Event in a Church

THANK YOUTHANK YOU

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