Give little but
give often
OUR LENDING METHODOLOGY
At Akhuwat, our loans are relatively small, but their impact on the lives of the poor are huge. Depending on the loan product, they range from PKR10,000 to PKR100,000. The capital injection uplifts local economies and has a positive ripple effect in poor communities.
Today, our unique model is changing the way people look at microfinance. It’s been studied at universities and adopted by other NGOs. Our Executive Director and board members are often invited to global platforms to share Akhuwat’s success story.
We’ve been hosted by the United Nations, Oxford University, Manchester University, and many other international institutions. Board members have also presented lectures and facilitated panel discussions at various Islamic conferences.
FILLING OF FORMS
Loan officers provide INFORMATION and assist borrowers in filling out loan APPLICATIONS
SOCIAL APPRAISAL
FIRST MEETING
BUSINESS ANALYSIS
SECOND MEETING
LOAN RECOMMENDATION COMMITTEE
LOAN APPROVAL COMMITTEEt
INSURANCE
DISBURSEMENT
MONITORING
recovery
DONATION POOL
FILLING OF FORMS
The FIRST MEETING is held at the applicant’s home along with his/her peers. We verify their application information a second time and obtain additional information to complete the case.
SOCIAL APPRAISAL
Case officers carry out a SOCIAL APPRAISAL of the applicant (market and reference check). That case officer pays several visits to borrower’s neighbourhood and place of work to verify the information provided in the application form and enquires about his/her reputation and credibility.
FIRST MEETING
The FIRST MEETING is held at the applicant’s home along with his/her peers. We verify their application information a second time and obtain additional information to complete the case.
BUSINESS ANALYSIS
The case officer will provide necessary guidance to the applicant in their next meeting and assess applicant’s commitment and ability to repay the loan.
FIRST MEETING
The FIRST MEETING is held at the applicant’s home along with his/her peers. We verify their application information a second time and obtain additional information to complete the case.
BUSINESS ANALYSIS
The case officer will provide necessary guidance to the applicant in their next meeting and assess applicant’s commitment and ability to repay the loan.
SECOND MEETING
Conducted by Branch Manager with 3 borrowers at a time, along with their families at religious institutions. The branch manager reminds borrowers of their moral obligation to repay the loan. Explains the benefits of repayment – new loans dispersed with loan repayments. The cycle of helping the needy helping themselves continues.
LOAN RECOMMENDATION COMMITTEE
A team of branch and case managers review and assess cases from different regions to ensure standardisation across branches and regions. This also prevents any favouritism potential and discrimination.
LOAN APPROVAL COMMITTEE
Area managers discuss each application with its respective case officer. If all conditions have been met, the area managers grant loan approval.
INSURANCE
After approval, the borrower is offered Islamic insurance to cover repayment of the loan, in the event of the borrower’s death. This is very beneficial for the family and is recommended.
DISBURSEMENT
Loans are usually disbursed collectively to batches of borrowers. We provide borrowers with social guidance and remind them of their moral obligation to repay the loan. In this way, we can continue to help others.
MONITORING
Case officers monitor that the loan is used as approved.
RECOVERY
In the event that a borrower fails to pay an instalment, we give them reminders, follow-ups and visits. We provide moral and social guidance and try and address reasons/problems for non-payment as well as possible solutions.
DONATION POOL
Proceeds from recovered loans are reinvested in the donation pool and used to finance new loans.
