| |
|
|
 |
| |
Individual loans are marketed through awareness campaign in poor localities, market places and through previous borrowers. An introduction to the program is also given in local mosques after prayers or churches when people congregate for prayers. This has not only saved operational costs but has also opened doors of places of faith and worship for socio-economic development. The loans are accessible to all Pakistanis without any religious, gender, disability and political bias.
|
|
| |
|
|
| |
|
|
|
| |
The loan process starts with the submission of applications by individuals interested in acquiring financial assistance. The Unit Manager (Loan Officer) then evaluates if the applicant is eligible for a loan or not based on his/her income and social capital.
|
|
| |
|
|
| |
Preparation of Business Plans
|
|
|
| |
Through the preparation of business plans the business idea of the loan applicant is evaluated to see if it is viable and whether it can generate income beyond the household expenses of the individual so that the loan could be repaid easily. The applicant’s family is also interviewed to make sure that they know about the loan and support the business idea.
|
|
| |
|
|
| |
Credit Appraisal |
|
|
| |
After initial appraisal by the Unit Manager, the application is forwarded to the Branch Manager who assesses its technical section. The credit committee comprising of the Unit, Branch and Area Mangers then reviews the credit case. If the committee approves the case, the loan is disbursed. The whole process takes almost 3 weeks. |
|
| |
|
|
| |
Guarantors of Loans |
|
|
| |
Every borrower also provides two guarantors who vouch for his/her credentials, accept responsibility of monitoring the borrower and give assurance to pursue the borrower for timely payment of loan. One of the two guarantors may be from the same family. |
|
| |
|
|
| |
Credit Disbursement/Capacity Building |
|
|
| |
Disbursement takes place 2-3 times a month and 100-150 loans are disbursed at each event, usually held at a branch office/mosque or church. Every borrower has to be accompanied by one of the guarantors. Other people present at the time of disbursement include community members, and Akhuwat staff from the head and branch offices. Social Guidance events are also held simultaneously in which the capacity of borrowers is built to carry on their work more efficiently and effectively. They are also introduced to Akhuwat’s social agenda, with the aim to give rise to group of responsible citizens. The agenda specifically includes: |
|
| |
- Emphasis on girls’ education.
- Serving the community at large.
- Protection and improvement of environment, especially importance of plantation.
- Observance of traffic rules and local laws.
- Adopting the highest ethical values in business.
|
|
| |
|
|
| |
Recovery/Follow up |
|
|
| |
Once the loan has been disbursed, the Unit Manager monitors the client with regular visits to his/her residence and place of work. The loan repayment has to be submitted at the branch by the 7th of each month. If a payment is not in by the 10th, the Unit Manager visits the client to remind him/her and if repayment is still not done, the guarantors are contacted and asked to make the payment. Recovery rate of Akhuwat at present is 99.7%. This speaks of the success of the entire system. |
|
