‘Akhuwat’ (an interest-free micro-finance NGO) has disbursed more than $ 675 million over a period of ten years, with a recovery rate of 99.99pc, staying true to its mission of helping the under-privileged families.
The concept of Akhuwat was germinated by Dr Muhammad Amjad Saqib with a first interest-free loan of $ 65 extended to a widow who wanted to earn living with integrity. She bought a sewing machine with the borrowed money to start a small home-based boutique. Return of the entire amount within the agreed time-frame led to the creation of a pool of money for the poor; which in turn became the basis for recovering funds for indefinite recycling.
This initiative led to the establishment of the first interest-free micro-finance organization in the country which soon gained credibility. Gradually people offered more donations to Akhuwat which in turn extended more loans to individuals on the basis of social collateral. Akhuwat successfully opened 831 branches all over Pakistan with over 900,000 active clients and over 4 million total beneficiary families. In Lahore alone, 42 branches are operating to their full capacities.
Its presence in over 400 cities of Pakistan speaks highly of its sustainable growth model and viable operations.
Pakistan Observer had a sitting with Akhuwat’s Chief Executive Dr Muhammad Amjad Saqib at his office and talked about his programme at length. Here we are sharing his precious views with our valued readers.
To a question that why did he leave an authoritarian job and started serving marginalised segment of the society, he said, “I started my primary education from Kamaliya a town of district Toba Tek Singh and did my matric there then FSc in 1974 from Government College, Lahore”.
In 1981 I did my MBBS and in 1985 joined Civil Services. In written exams of CSS I stood first but overall I was on third position in Pakistan. I was allocated District Management Group (DMG).I left for America and stayed there for two years. In 2003 I resigned from my job since I had already started Akhuwat in 2001 and I thought that it was the best job to help the needy people. I was of the view that helping people is a good job, secondly I love it, thirdly I can do it in good way.
There are four motivating forces in the subconscious of a man to do any work.
One is that you love any task, second is that you can do something in better way, third is that you can earn better from a job and fourth is that that job is good for society.
Dr Amjad said that when someone finds a job to which he loves, he can do that job in excellent way, he earns handsome amount from that job and fourth thing that that job is beneficial for society also all this process can be called good luck. I am achieving three objectives by doing work for Akhuwat, number one I love to help neglected segment of society, number two I can do it in a better way and third one objective I am getting is that it is good for society.
Number fourth objective, earning money is not part of this job. When I resigned from my office I searched for another part time job of consultant to maintain the relation of soul and body.
Dr Amjad said that miseries start in the life of a person when he wants things more than his requirements and before the time fixed by Allah almighty. There is a will of God also as per which he has fixed the time to grant you something and quantity of that thing. Allah has created the human and asked him to deal with the resources of the universe and also asked him to create ease for others and basic objective of the formation of Akhuwat is also to create ease for others.
He said that Akhuwat offers diversified loan products to meet the needs of its clients. These include: family enterprise loans, liberation loans, education loans, marriage loans, emergency loans, silver loans, housing loans etc. Akhuwat loans are interest-free and there is no service charge or loan processing fee. It only charges a nominal application and insurance fee. These fees are optional and in total less than 1.5pc of the loan amount. Maximum loan limit that Akhuwat offers is $ 324 but the average loan size is around $ 100. Akhuwat’s expansion depends on continuing donations to finance growth in the loan portfolio. The organization’s mission is to alleviate poverty by empowering socially and economically marginalized segments of the society through interest-free micro-finance and in the process harnessing their entrepreneurial potential and enhancing their capacity through economic and social guidance. Akhuwat envisions a poverty free society built on the principles of compassion, brotherhood and equity.
‘Akhuwat’ easing the needy with interest-free loans, says Saqib
