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1. Inspiration:Muakhat-a-Madina 2. Assumptions: People who want to give to others Poor are trust worthy and want to work 3. Principles: Interest Free Mosque Local philanthropy & Volunteerism Takers will become givers 2

INNOVATION 1

Cardinal Islamic Practice Emphasis in Hadith and Practiced by Holy Prophet Higher virtue than Sadaqat/ Khairat 4 Helping someone in need with interest free loans; these are preferred over charity.

Akhuwat has not reinvented wheel……… It has only institutionalized the individual practice of Qarz-e-Hasna 5

6 ProgressTotal Total Family Loans 203,554 Amount DisbursedRs Billion Active Loans85,422 Percentage Recovery99.84% Number of Cities 105 Number of Branches153

Cost Structure Interest:zero Loan Processing Fee:zero Profit :zero Application Fee:Rs

INNOVATION 2

9 Akhuwat uses local mosque or church infrastructure as the center for loan disbursement. This provides an avenue for: Community participation Raising awareness Cuts organizational costs Ensures transparency and Accountability.

A Loan Disbursement Event in a Mosque

Akhuwat Event in a Mosque (Chiniot)

Akhuwat Event in a Mosque (Lahore)

Akhuwat Event in a Mosque (Mithan Kot)

Akhuwat Event in a Mosque (Rajan Pur)

Akhuwat Event in a Mosque (Choti – D.G Khan)

Awareness Event in a Mosque

22 A Loan Disbursement Event in a Mosque

24 A Loan Disbursement Event in a Mosque

INNOVATION 3

26 Akhuwat does not discriminate on the basis of Male or Female. It visualizes family as a basic unit in a society. The loan application is jointly signed by male and female heads of the family.

INNOVATION 4

28 Since its inception, Akhuwat has relied upon local philanthropists. Akhuwats source of funding is: Individual donors Institutional donors Borrowers become donors

29 YearAmount (in PKR) M M M M M YearAmount (in PKR) M M M M M M

30 Helping our poor is our responsibility. A pool of more than 1000 donors. Donated amount ranges from PKR 10,000 to 10 million. Donation Pool has exceeded Rs. 500 million Developing working relations with International Donors

INNOVATION 5

32 The spirit of volunteerism is the hallmark of Akhuwats operations. It is a key factor for the success and sustainability. Many people extend their valuable time, money and other resources free of cost. More than 1000 registered volunteers Involvement of Civil Society, Private Sector, Expatriates & Experts Universities: UCP, UMT & LUMS

33 Akhuwat volunteers with Ex-Governor Punjab Lt. Gen (rtd) Khalid Maqbool at a Certificate distribution event

34 Akhuwat volunteers at a fund raising event

35 Volunteers at Akhuwat Entrepreneurship Awards 2009

36 Volunteers at Akhuwat Funds Mobilization Event

37 …It is civil society at best A Fund Raising Event

Volunteerism is replication of Muakhat-a-Madina 38

INNOVATION 6

Our borrowers are our donors as well Small Donation boxes are placed at work places Borrower contributes Rs. 2 to Rs. 5 daily. More than 50,000 active borrowers It is not compulsory Staff also donates Journey towards Sustainability 40

41 Yes! I am a borrower but a donor too!

Donation box at a borrowers shop

43 MonthAmount (in PKR) July1,406,360 August1,488,919 September1,418,952 October1,396,203 November1,418,743 December1,622,505 January1,897,075 February2,130,348 March2,616,181 April2,851,965 May2,765,891 June3,049,594 Total24,062,736

INNOVATION 7

Akhuwat has used credit plus approach by introducing the idea of social guidance for its credit beneficiaries to help them flourish their small enterprises and improve their standard of living. It focuses on Education, Health, Environment, Local Laws and ethical business practices 45

INNOVATION 8

47 Branch Offices in Mosque Farshi Floor Seating Training in Mosque No Car/ Jeep Banker on bike No Tea/ eatables

48 Staff Training Event in Model Town Branch

49 Staff Training Event in Model Town Branch

50 Staff Training Event in Model Town Branch

51 Staff Training Event in Mosque

52 Executive Director and Akhuwat Staff in Township Branch, Lahore.

Collateral Finance Microfinance Qarz-e-Husn Zakat 50% 25-30% 15-20% 5% 53

Malcolm Harper Chairman Micro-Credit Ratings International

55 Mr. Shoaib Sultan Khan Chairman Rural Support Program Network (RSPN)

ACTIVITYLOCATION Dialogue in the mosqueMosque/Church Establishment of an office in mosqueMosque/Church Programme IntroductionMosques/Church Receive ApplicationsOffice / Mosques Social ScreeningPlace of residence Economic AppraisalMarket / Mosques Site VisitHouse/Market Guarantors interviewMosque Finalization of documents/caseMosque Approval of case by loan committeeMosque Cheque preparationOffice Disbursement of cheque/social guidanceMosque / Church Fortnightly visits / monitoringBusiness place Recovery Deposit/social guidanceMosque / Follow-up Subsequent Visit/monitoringMarket Second LoanOffice / Record

Address: 382, Block 15, Sector B-1, Township Tel: Mob: , ,