1. I slamic M icro H ousing F inance – A khuwat M odel May 29, 2015 Dr. Muhammad Amjad Saqib Chairman - Akhuwat

2. Section I Akhuwat – an Organization for Interest Free Microfinance

3. Akhuwat  Akhuwat was established in 2001 with the objective of providing interest free micro- credit to the poor so as to start a business, come out of poverty and enhance their standard of living.  ‘Akhuwat’ means brotherhood or solidarity with the poor and less advantaged.

4. Vision A poverty free society built on the principles of compassion and equity. Mission To alleviate poverty by empowering socially and economically marginalized families through interest free microfinance and harnessing entrepreneurial potential, capacity building and social guidance.

5. How A khuwat is different? Microfinance is not a new strategy but Akhuwat is different because of;  Interest-free loans – Qard e Hasan  Use of Religious places  Spirit of Volunteerism  Transforming Borrowers into Donors

6. Map of Pakistan

7. Achievements  Total amount disbursed: PKR 16 billion  Total borrowers : 850,000  Offices in Pakistan: 350  Recovery Rate : 99.8 %  Staff : 2,000+  Cities: 210  A new model in the world of MF  Included in the syllabi of two Universities

8. BEYOND MICROFINANCE 1.Akhuwat Microfinance (Qard-e-Hasan) 2.Akhuwat Health Services 3.Akhuwat Educational Assistance Program 4.Akhuwat Volunteers 5.Akhuwat Khuwajasira Support Program 6.Akhuwat Clothes Bank 7.Akhuwat Dreams 8.Akhuwat University 9.Akhuwat Interest Free Housing Loan Programme

9. Section II Interest Free Housing Loan Programme in collaboration with in collaboration with Al-Noor Umar Welfare Trust

10. Silent Features  Interest Free Housing Loans for construction, renovation and repair of rooms, roofs, walls etc.  Loan ranges from Rs. 30,000/- to Rs. 100,000/-  Repayment within two to three years  Locality – Poor Areas / Slums  Incremental Loaning  Purpose is to provide Housing Facility & security to the poor  Improve Standard of Living

11. EligibilityCriteria Eligibility Criteria  Borrower owns a plot not exceeding 4 Marlas.  Family income does not exceed Rs. 20,000/-  Does not own another house  Preferably a previous borrower of Akhuwat  Good social capital  Has regular source of income

12. Progress Report Progress IndicatorTill April 2015 Total Amount Disbursed Rs. 46 Million Total No. of Loans Disbursed 723 Active Loans 227 Outstanding Loan Portfolio Rs. 36 Million Recovery Rate 100%

13. NameYasmeen Jameel 1 st Loan Rs. 75,000/- Disbursement Date June 2013 2 nd Loan Rs. 100,000/- Disbursement Date Nov 2014 Purpose Construction & Renovation

14. NameAnees Akhtar 1 st Loan Rs. 70,000/- Disbursement Date June 2012 2 nd Loan Rs. 100,000/- Disbursement Date Nov 2014 Purpose Construction

15. NameShoukat Ali 1 st Loan Rs. 70,000/- Disbursement Date June 2012 2 nd Loan Rs. 100,000/- Disbursement Date Feb 2015 Purpose Full House

16. NameIftikhar Ahmed Loan Rs. 70,000/- Disbursement Date February 2015 Purpose Roof and Plaster

17. NameMuhammad Sadar Loan Rs. 80,000/- Disbursement Date Nov 2014 Purpose Full Room

18. NameMansoor Elahi Loan Rs. 60,000/- Disbursement Date August, 2014 Purpose Full Kitchen

19. NameMuhammad Waseem Loan Rs. 80,000/- Disbursement Date Dec 2013 Purpose Finishing of House

20. NameMuhammad Ibrar Loan Rs. 80,000/- Disbursement Date December 2013 Purpose External Walls & Door

21. NameRiffat Shaheen Loan Rs. 100,000/- Disbursement Date May 2015 Purpose Roof of Kitchen & Doors

22. NameSalman Shaukat Loan Rs. 80,000/- Disbursement Date Feb 2015 Purpose Roof of a Room

23. Section III A New Loan Product for Mithi District, Sindh

24. Context  Mithi is the Headquarter of Tharparkar District in the Sindh  An estimated population of 1,481,643 (2012)  Estimated Households are 211,000  44 union councils & 2,357 villages  Literacy Rate 18.32% for men and 6.91% for women

25. One of the Priority Area  During recent visit and R apid N eed A ssessment to District Mithi and adjourning area, Akhuwat Team observed inadequacy of Housing units.  A typical house consisting of 2 Rooms plus Bathroom costs around PKR. 100,000

26. Solution  Creation of initial fund of PKR. 100 Million that will revolve as I nterest F ree L oan to eligible poorest household to construct their houses.

27. Eligibility Criteria  Those household will be selected who fall in the range of 0 – 20 on poverty score card  Also have the capacity to return in easy installments in 2 – 3 year’s time.  Either the family does not have a house or the house is in a dilapidated condition.

28. Process Selection of 10 to 20 settlements, within close proximity Identification of Eligible Households from these settlements Agreement with the Households Designing of the House as per available land and cultural environment Release of First Installment to Family Technical Support and Supervision of construction Release of 2 nd Installment Completion of the construction Start of recovery of installments and loans to new household

29. Revolving Funds  A fund of PKR. 100 Million will be raised from the philanthropist / institutional donors.  The construction will start once PKR. 10 Million is available in the fund. (PKR. 5.1 Million is available)  Funds will be utilized through interest free loan scheme to the owner of such houses.  It is expected by revolving this amount around 1,500 units will be built every year

30. Implementation  The fund will be raised and managed by Akhuwat  The process of identification of eligible candidates, technical support in design and construction may be out-sourced to a third party familiar with socio- economic conditions of the locality.

31. Operational Cost  Operational Cost is expected to be 10% of the total amount  This amount will be raised separate from the revolving fund. The households may also contribute in this.

32. Replication and Expansion  Once the program is implemented successfully a review and impact assessment will be conducted within One Year, and the program will be replicated in other parts of the this districts and neighboring districts.

33. Loans Advanced so far…

34. Please contact us www.akhuwat.org.pk 19 Civic Center Sector A-2, Township, Lahore Phone # 042-35122743, 35112146-47 amjadsaqib1@gmail.com