Akhuwat.org.pk

Family Enterprise Loan:

These loans are given for establishing a new business or expanding an existing one. Family Enterprise loan is the most common type of loan offered by Akhuwat. It comprises 91% of Akhuwat’s loan portfolio. The Family Enterprise loan varies in the bracket of Rs.10,000 to Rs. 30,000, however, most common amount for the first loan is Rs.15,000. The individual has to come up with a viable business plan to become eligible for the loan. The Enterprise loan is also known as the family Enterprise loan because during the period of appraisal and lending the entire family is involved in the process with the view to make it a family venture instead of individual effort.

Liberation Loan:

It is used for repayment of loans taken from money lender on exorbitantly high interest rates. This type of loan is given to those who have borrowed money from moneylenders at very high interest rates. Akhuwat believes that of lending by the money lender is exploitation of the poor and needy and is resulting in increasing the poverty instead of making dent into it. Akhuwat pays the principle amount in one go for the client and then the client has to pay back the amount in interest free installments to Akhuwat. Range of this loan is upto Rs. 40,000. 

Education Loan:

It is utilized for paying dues (fees) or purchase of books and material of poor students. It provides education expenses in easy way. Range of education loan is upto Rs. 25,000.

Marriage Loan:

Marriage loan is given for dowry of bride (daughter) or marriage ceremony arrangements. This loan helps in meeting the marriage expenses of a girl of a poor family.  Range of this loan is upto Rs. 25,000. Boys are not entitled for such loans. 

Emergency Loan:

This type of loan is given to meet emergency situations such as school admission fee, treatment, purchase of medicine, etc. These loans are given to prevent the poor from major fallbacks. The amount loaned to the poorest of the poor is generally Rs. 5,000 and this has to be repaid within one year.

Silver Loan:

This is given to increase the size of the existing business. Akhuwat recently launched this new product. This medium size loan of Rs. 50,000 is given to those who have successfully completed three or more cycles of borrowing from Akhuwat and are interested to further expand their business.

Housing Loan:

For renovation of house, construction of room, roof, or walls, etc. Range of this loan varies between Rs. 25,000 to 70,000 and has to be repaid within two years time limit. Akhuwat started this product in collaboration with Al-Noor Umar Welfare Trust, another nonprofit organization founded by Mr. Khalil Mian, former Chairman of Pakistan Credit Rating Agency (PACRA).

Akhuwat staff also provides technical training to its clients. They make the latest knowledge and market information available to the clients so that they become more efficient. Clients who lack expertise are taught and trained in the vocations of their interest. They may do “intern-ships” with borrowers who are already running some specific enterprises and are desirous of imparting skills to others. Akhuwat coordinates activities with other NGOs and Social Welfare Organizations so that social services can reach their own clients. Akhuwat focuses especially on education and health because these are basic necessities and the right of every individual and have benefits beyond the individual himself. Legal aid has also been provided to the needy by a team of volunteer law students through one of the Board member who is a lawyer and Principal at a local Law College.