Another Step towards institutionalization, Akhuwat has been incorporated as a company under section 42 of the Companies Ordinance 1984                         A Donated Brick Worth Rs. 1000/- Can Make You One Of The Owners Of Akhuwat University

Microfinance Products


The Family Enterprise loans are for establishing a new business or expanding an existing one with the aim of enabling the borrower to secure a sustainable livelihood. It is the most common type of loan offered by Akhuwat; comprising 91% of Akhuwat's loan portfolio. The Family Enterprise loan ranges from 10,000 rupees to 30,000 rupees however keeping in view the rapid inflation in the country, Akhuwat now gives initial loans of up to 15,000 rupees. To be eligible for the loan, the individual has to come up with a viable business plan which he may construct with the guidance and support of the Akhuwat staff. The loan is known as the Family Enterprise Loan because it intended for the entire family and not restricted to either male or female members of the household. Even though the entire family is involved during the loan process, the business is undertaken by one member of the family who has the required expertise. The Family Enterprise Loan is designed to strengthen the social fabric by involving the whole family in the loan process such that the enterprise becomes a family venture instead of an individual effort.


Liberation Loans are for repayment of loans taken from money lenders on exorbitantly high interest rates. With the culture of informal money lenders, or baniyas, prevalent in Pakistan, many poor people find themselves in a cycle of ongoing debt as they struggle to pay the high interest rates for years leaving the principle amount untouched. Interest rates may be as high as 1, 000 percent and might financially cripple the poor. Many a times, the loan persists from one generation to the next making it impossible for the family to secure a sustainable and respectable livelihood for themselves. Liberation loans were introduced to counter the effects of these loan sharks and continue Akhuwat’s fight against interest. Akhuwat pays the principal amount in one go for the client and the client in turn pays back that amount in interest free installments to Akhuwat. The upper limit of the loan is 50, 000 rupees however substantially large loans may also be given after the approval by a Committee headed by the Executive Director.


The Education Loan caters to the needs of the poor who are unable to finance their own or their dependent’s education. Many poor students are forced to drop out of school as they do not have enough savings to continue their education. Emphasis on education has been an integral part of Akhuwat’s social agenda and through the Education Loan; Akhuwat intends to ensure that poor students are able to continue their education in spite of the lack of financial support. In most cases the loan is utilized for paying fees and dues, purchasing books and material, and paying initial registration or examination fee. The upper limit of the education loans is 25, 000 rupees.


The Health Loan is for those who are unable to support the costs for necessary health care. In most cases, the poor do not have contingency funds or savings to support them in shouldering the financial costs of health care. Diseases like hepatitis, tuberculosis and diabetes are quite common in underdeveloped areas and while these diseases are not fatal in themselves, they have contributed to the death of many poor people who are unable to afford necessary treatments. Noting this scheme of things, the Health Loan was specifically designed to assist the poor with funds that could help save their lives. The loans offered range from10, 000 rupees to 20, 000 rupees. The Health Loan complements the health services provided by Akhuwat to its borrowers, employees and the underprivileged in general, under the auspices of Akhuwat Health Services.


The Emergency Loan is intended to diffuse the impacts of major contingencies or crisis situations that undermine the sustainability of the livelihoods of the poor. Akhuwat realizes that the economic life of the poor is perturbed by many unforeseen events and emergencies, with the families having little or no buffer amount to counter such shocks. The Emergency Loan has been designed to counter such inopportune shocks so that the long term progress of the client is not compromised. Loans in this category may be used for diffusing losses in business, health care expense, machinery repairs, motor vehicle repair, veterinary expense and admissions fee amongst others. The loan ranges from 5, 000 rupees to 10, 00 rupees and may be repaid over one year. It is processed within 2-3 days and is the only loan product which may be utilized in conjunction with other loan products.


The Housing Loan is for necessary renovation of houses including construction of rooms, roofs and walls. In evaluating applications for the Loan, great care is taken to ensure that the intended renovation is essential and necessary for the wellbeing of the borrower and is not a luxury. The range for this loan varies between 30, ooo to 70, 000 rupees and has to be repaid within two years. Akhuwat started this product in collaboration with Al-Noor Umar Welfare Trust, a nonprofit organization founded by Mr. Khalil Mian. Over time these loans have been instrumental in improving living conditions of the poor who had been forced to live in appalling conditions for generation due to lack of monetary resources.


The Marriage Loan is to facilitate the marriages of daughters. The marriage of daughters remains a huge responsibility for parents in the Pakistani society and many poor families are confronted with the difficulty of arranging necessary funds for marriage ceremonies and dowries. Over the years, many poor families had expressed the need for assistance in marrying their daughter which led Akhuwat to introduce the Marriage Loan. Up to 20, 000 rupees can be disbursed for this purpose.


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