GUIDING PRINCIPLES OF AKHUWAT

Interest-free microcredit:
Akhuwat provides the economically poor with interest free loans so that they may acquire a self-sustaining livelihood. It also provides the skills and support they need to actualize their full potential and abilities.

Reliance on philanthropy:
Since its inception Akhuwat has solely relied upon the philanthropists in extending its services to the community. However, in order to fulfill the increased credit needs of its ever-increasing clientele it is now willing to work with the international donors as well.

Spirit of volunteerism:
The spirit of volunteerism that Akhuwat’s management and its team members exhibit is indicative of the success Akhuwat achieved within a short span of time.

Family loans:
Family loan is the most common type of loan that Akhuwat offers to its clients for setting up or expanding a business. Income from this business is jointly shared by the whole family. The loans given by Akhuwat are co-signed by male and female head of the family. Akhuwat believes in strengthening family unit as some studies show that separate loans to male and female in a family may result in tensions in the family and hence may cause disintegration of this important institution.

Linkages with Mosque and Church:
An important and novel idea associated with individual loans is the use of the local mosque/church infrastructure as the center for loan disbursement and as an avenue for community participation.

Combination of individual and group lending program:
Diversification of loan portfolio by offering different loan products has helped to increase the outreach of the organization.

Credit Plus approach:
Akhuwat has employed a credit plus approach by introducing the idea of social guidance for its credit beneficiaries. The purpose of this approach is to help borrowers flourish their small enterprises so that they can lead socially healthier lives than before.