Akhuwat Loan Scheme
Akhuwat Loan Scheme is an initiative by Dr. Amjad Saqib that provides interest-free microfinance loans to the poorest of the poor in Pakistan. Akhuwat aims to alleviate poverty by providing easy access to capital for micro-entrepreneurs to start a small business. The organization follows Islamic principles and relies on donors to provide funding for the loans.
Akhuwat has gained immense popularity in Pakistan due to its innovative model and focus on helping those most in need. Since beginning operations in 2001, Akhuwat has disbursed over PKR 100 billion in loans to over 4.2 million borrowers across 1000+ branches nationwide. The recovery rate for loans is an impressive 99%.
Here is a step-by-step guide on how to apply for an Akhuwat loan in 2023:
Eligibility Criteria
The first step is to check if you are eligible for an Akhuwat loan. The basic criteria are:
- Must be aged 18 years or older
- Must have a valid CNIC
- Total family income should be less than PKR 50,000 per month
- Should not have any existing loan from a commercial bank
- Preference is given to women borrowers and special persons
Required Documents
When applying for an Akhuwat loan, you need to submit photocopies of these documents:
- CNIC
- Ration card or B-form
- Electricity bill
- Marriage certificate (if married)
- Business related documents (if applying for business loan)
How to Apply?
There are two ways to apply for an Akhuwat loan in 2023:
Online Application
1. Visit Akhuwat's website: www.akhuwat.org.pk
2. Click on "Apply for Loan"
3. Fill out the online application form with your personal and business details
4. Upload scanned copies of your documents
5. Click submit. You will receive an application reference number.
Offline Application
1. Visit your nearest Akhuwat branch office
2. Obtain the loan application form
3. Fill it out with your personal, family, and business details
4. Attach photocopies of required documents
5. Submit the application form to Akhuwat office
Akhuwat Loan Processing
After applying, here is how Akhuwat processes loan applications:
- Akhuwat branch manager will verify applicant details and documents.
- A credit officer will visit applicant's home or business to assess repayment capacity.
- Loan application is presented before a Local Loan Committee composed of community representatives.
- If approved, the terms and conditions are explained to the borrower and loan is disbursed.
- The borrower will need to provide two personal guarantees who will act as co-signers for the loan.
Akhuwat Loan Details
- Loan size: PKR 10,000 to PKR 75,000
- Repayment period: 12-18 months
- Service charges: None
- Collateral: Not required
- Markup rate: 0%
The loan amount and tenure depends on the purpose of the loan and borrower's repayment capacity. Borrowers have to repay in small weekly or monthly installments.
Usage of Funds
Akhuwat loans can be utilized for:
- Starting or expanding a small business
- Purchasing livestock
- Meeting emergency household expenses
- Paying for medical treatment
- Repairing or reconstructing a home
- Paying for education fees
- Meeting expenses for marriage ceremony
conclusion
By providing easy access to capital to the most impoverished segments of society, Akhuwat is empowering communities and helping break the cycle of poverty. Those interested in transforming their lives should apply for an Akhuwat loan in 2023.
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