Source. ET
Akhuwat has shifted to the group lending model for the last one year. In this model, borrowers living in the same locality become each other’s guarantors, thus ensuring a high recovery rate. PHOTO: FILE
Based on interest-free lending to the people living below the proverbial poverty line to help them set up or expand their businesses, the non-governmental organisation, Akhuwat, has already disbursed over Rs3.3 billion to 231,335 families all over Pakistan since 2003.
“We met representatives from African countries in a recent conference in Dubai, who asked us to set up an interest-free microfinance institution in Africa. Poverty is an endless cycle, which gets worse because of interest-based lending,” said Abubakr Siddique, Chief Coordinator of Akhuwat, while speaking to The Express Tribune in an interview.
Akhuwat gave the first loan of Rs10,000 in 2003 to a woman in Lahore. She paid it back in instalments in six months instead of one year. That motivated Dr Amjad Saqib, elder brother of Siddique, to set up a fund under the banner of Akhuwat with the help of his friends and acquaintances, which lends money to the poor to help them become self-reliant.
Very interesting and amazing in current scenario of Pakistan. In fact according to real teachings of Islam this is the correct way and should be encouraged. Most probably it can serve as guide line for real Islamic banking in future. Might be for some it is news but let me share it that such a system is in practice since many years in international Ahmadiyya community, though at small scale and that too only amongst community members. Few non community members also get loan for studies and other purposes. Guarantor in all the cases is needed.
Concept of Akhuwat is workable only where you posses high moral traits. The whole system works on trust, honesty and fairness. Pakistani nation has potentials in many fields provided these can correctly identified and channelized in right direction.
Alhumdolillah. Not only is it heart warming to see Islamic teachings in action and benefiting the needy as they were meant to, but perhaps the more inspiring detail of this story is the fact that there are people in Pakistan– a country, unfortunately, buried in corruption– who are willing to do something so noble and actually promote the good teachings of Islam with their beneficent model, rather than loud and empty boasts and extremist attitudes.