Alhuda CIBE - Presentation on Akhuwat innovative approach by DR. M . Amjad Saqib -latest

1. 1

2. 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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3. INNOVATION 1

4.  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.

5. Akhuwat has not reinvented wheel………
It has only institutionalized the individual
practice of Qarz-e-Hasna
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6. 6
Progress Total
Total Family Loans
203,554
Amount Disbursed Rs. 2.90 Billion
Active Loans 85,422
Percentage Recovery 99.84%
Number of Cities
105
Number of Branches 153

7. Cost Structure
Interest : zero
Loan Processing Fee: zero
Profit : zero
Application Fee : Rs. 100
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8. INNOVATION 2

9. 9
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.

10. A Loan Disbursement Event in a Mosque

11. A Loan Disbursement Event in a Mosque

12. A Loan Disbursement Event in a Mosque

13. A Loan Disbursement Event in a Mosque

14. Akhuwat Event in a Mosque (Chiniot)

15. Akhuwat Event in a Mosque (Lahore)

16. Akhuwat Event in a Mosque (Lahore)

17. Akhuwat Event in a Mosque (Lahore)

18. Akhuwat Event in a Mosque (Mithan Kot)

19. Akhuwat Event in a Mosque (Rajan Pur)

20. Akhuwat Event in a Mosque (Choti – D.G Khan)

21. Awareness Event in a Mosque

22. 22A Loan Disbursement Event in a Mosque

23. A Loan Disbursement Event in a Mosque

24. 24A Loan Disbursement Event in a Mosque

25. INNOVATION 3

26. 26
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.

27. INNOVATION 4

28. 28
Since its inception, Akhuwat has relied
upon local philanthropists. Akhuwat’s
source of funding is:
• Individual donors
• Institutional donors
• Borrowers become donors

29. 29
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

31. 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

33. 33
Akhuwat volunteers with Ex-Governor Punjab Lt. Gen (rtd) Khalid
Maqbool at a Certificate distribution event

34. 34
Akhuwat volunteers at a fund raising event

35. 35
Volunteers at Akhuwat Entrepreneurship Awards 2009

36. 36
Volunteers at Akhuwat Funds Mobilization Event

37. 37
…It is civil society at best
A Fund Raising Event

38. Volunteerism is
replication of
Mua’khat-a-Madina
38

39. INNOVATION 6

40.  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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Yes! I am a borrower but a donor too!

42. Donation box at a borrower’s shop

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Month Amount (in PKR)
July 1,406,360
August 1,488,919
September 1,418,952
October 1,396,203
November 1,418,743
December 1,622,505
January 1,897,075
February 2,130,348
March 2,616,181
April 2,851,965
May 2,765,891
June 3,049,594
Total 24,062,736

44. INNOVATION 7

45. 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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46. 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

48. 48
Staff Training Event in Model Town Branch

49. 49
Staff Training Event in Model Town Branch

50. 50
Staff Training Event in Model Town Branch

51. 51
Staff Training Event in Mosque

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

53. Collateral
Finance
Microfinance
Qarz-e-Husn
Zakat
50%
25-30%
15-20%
5%
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54. Malcolm Harper
Chairman
Micro-Credit Ratings International

55. 55
Mr. Shoaib Sultan Khan
Chairman
Rural Support Program Network
(RSPN)

58. 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

73. Address: 382, Block 15, Sector B-1, Township
Tel: +092 0423 5122743 Mob: +092 0333 4323631, 0300 4609807, 0300 8420495
Email: akhuwatinfo@yahoo.com, amjadsaqib1@gmail.com, contact@akhuwat.org.pk