Akhuwat is a not-for-profit organization which was founded in 2001 on the Islamic principle of Mawakhat مواخات or solidarity. The concept of Mawakhat predates to 622 CE when Prophet Muhammad (Peace Be Upon Him) urged the residents of Medina (Ansars) to share half of their belongings with the Muhajirs (migrants) who were forced to flee persecution and migrated from Mecca to Medina. Drawing inspiration from the generosity displayed by the Ansars, Akhuwat believes that if the same approach, where one affluent family embraces a less fortunate one is adopted today, inequality will be eradicated from the world. read more
Akhuwat Foundation changed microfinance in Pakistan by giving interest-free loans to people in need. They believe in using financial help to empower, not burden, people. The loans help individuals and families with money problems to start businesses and become financially stable. To get a loan from Akhuwat, start by filling out an application at any of their branches. Akhuwat staff will review your finances, needs, and growth potential to make sure the loan goes to those who will benefit and use the money well for economic development.
Akhuwat Foundation provides different loans to meet specific needs like business, education, marriage, and emergencies. Business loans help entrepreneurs start or grow small businesses. Educational loans support students from low-income families in pursuing higher education. Marriage loans assist with wedding costs. Emergency loans provide fast financial help during crises like natural disasters or medical emergencies.
Akhuwat’s loan program involves the community. Borrowers are encouraged to repay loans in small amounts, promoting responsibility. The program also encourages borrowers to become donors in the future, giving back to the community. Akhuwat’s loan program in Pakistan has helped many people escape poverty, become financially independent, and improve their lives. The program gives interest-free loans and promotes mutual support, making a big impact on Pakistan’s development.
Applying for an Akhuwat loan is simple and accessible, showing the foundation’s dedication to helping people in need. The process includes steps to make sure loans go to deserving candidates who will benefit the most. Here’s a detailed guide on how to apply for an Akhuwat loan:
Step 1: Initial Inquiry
To start, go to the nearest Akhuwat branch. They have many branches all over Pakistan, so it’s easy for people from different areas to use their services. At the branch, ask about the types of loans and get the details for applying.
Step 2: Eligibility Check
Before filling out the application form, it’s important to ensure that you meet the eligibility criteria. Akhuwat Foundation typically requires that applicants:
Step 3: Documentation
Prepare the necessary documents to support your application. These documents generally include:
Step 4: Application Form
Fill out the Akhuwat loan application form accurately, providing all required information. This form can be obtained from the branch or downloaded from our website. Ensure that you detail your financial needs and plans for utilizing the loan effectively.
Step 5: Submission and Initial Review
Submit the application form and required documents at the Akhuwat branch. The staff will review it to make sure you have provided all the needed information and documents.
Step 6: Field Verification
Akhuwat’s field officers will visit your home or business to check if you qualify for a loan. This helps Akhuwat know more about your situation and decide if you can get the loan.
Step 7: Loan Approval
After verifying your application, a loan committee will review it. If approved, you will be informed about the loan amount, terms, and conditions. Akhuwat values transparency and will clarify all parts of the loan agreement for you.
Step 8: Distribution
After you agree to the terms, we will give you the loan quickly. Akhuwat makes sure the process is fast and efficient so you can get the money without delays.
Step 9: Utilization and Monitoring
After getting the loan, it’s important to use the money for its intended purpose. Akhuwat Foundation may check how the loan is used and offer help if needed. This helps make sure the loan is used for things like starting a business, paying for education, or handling emergencies.
Step 10: Repayment
Borrowers can repay in small, easy installments without financial stress. Akhuwat’s interest-free model lets you repay only the principal amount, building trust and community support.
Akhuwat Foundation provides different types of loans to help people and communities in Pakistan. These loans are made to solve financial problems and help borrowers improve their lives. Here is a detailed overview of the different loan types provided by the Akhuwat Foundation:
Akhuwat’s microfinance program relies on business loans to support entrepreneurs in starting or growing small businesses. This helps create jobs and improve local economies. Key features of Akhuwat business loans include:
Akhuwat helps students from low-income families pursue their academic goals by offering educational loans. The loans cover tuition fees, books, and other educational expenses. The main features include:
Marriage loans help families pay for wedding expenses. Akhuwat offers these loans to support families with the costs of weddings. Akhuwat offers:
Emergency loans help quickly when there’s a crisis like natural disasters, medical emergencies, or unexpected personal problems. Key aspects include:
Akhuwat provides housing loans to help people and families improve their homes. The loans can be used to build new houses or fix up existing ones. Important features include:
Health loans are made for medical expenses like treatments, surgeries, and medications. They help people get necessary healthcare services without money problems. Features include:
The Akhuwat Foundation is a non-profit organization in Pakistan dedicated to providing interest-free loans to the underprivileged to help them start or expand their businesses and improve their living conditions.
Akhuwat offers interest-free loans primarily for micro-enterprises, small businesses, education, health care, and housing purposes, focusing on empowering individuals and communities.
Usually, people with low income who can’t use regular banks because they don’t have collateral or good credit can apply. The requirements for eligibility may change depending on the type of loan.
Applicants can apply by visiting an Akhuwat office, attending a community meeting, or through our website, where they can find application forms and details on the submission process.
Basic documentation includes a valid ID card, proof of residence, and a business plan or detailed description of how the loan will be utilized, depending on the loan type.
The loan amount varies based on the loan type and the applicant’s needs and repayment capacity, which are assessed during the application process.
Repayment terms are flexible and designed to accommodate the borrower’s financial situation, typically structured in monthly installments.
Yes, Akhuwat actively encourages women to apply for loans, offering various programs specifically designed to support women entrepreneurs and individuals.
No, Akhuwat doesn’t need traditional collateral. It focuses on trust and community support.
Akhuwat tries to finish the review and give out money quickly, usually within a few weeks, but the time can change.
Yes, Akhuwat provides loans for educational purposes, supporting individuals seeking to further their studies or vocational training.
Akhuwat helps borrowers who are having trouble repaying their loans by adjusting the repayment schedule to make it easier for them.
Akhuwat operates across Pakistan, with numerous branches and field offices in both urban and rural areas.
Akhuwat ensures borrowers pay back loans by staying connected with the community, reminding them of their responsibility, and checking in regularly.
Yes, Borrowers who have paid back their loans can apply for more loans. They might get approved for higher amounts based on how well they repaid their previous loans.
Akhuwat’s funding comes from a combination of individual donations, community contributions, and partnerships with local and international organizations.
Yes, Akhuwat provides training and support services to help loan recipients improve their business skills and increase the success of their ventures.
You can help by donating, volunteering, or starting an Akhuwat chapter in your community. Visit the Akhuwat website for more information.
Akhuwat (Registration Number 3048949, NTN 3048949) is a non-profit organization which was registered in 2003 under Pakistan’s Societies Registration Act XXI of 1860. Akhuwat is an approved NGO by Pakistan’s Federal Board of Revenue. For documentation review please click here
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