How to get interest free loan from Akhuwat foundation in Pakistan

Akhuwat Foundation is Pakistan’s leading non-profit organization offering interest-free microfinance loans (Qarz-e-Hasna) to support individuals from low-income backgrounds. Whether it’s starting a small business, paying for education, managing a health emergency, or renovating a home, Akhuwat empowers people with dignity, not charity.

This article explains Akhuwat’s loan products, eligibility criteria, required documents, and step-by-step guidance on how to apply.

Akhuwat’s Unique Features

Zero Interest: All loans are purely interest-free (Qarz-e-Hasna)

Community-Based Lending: Loans are given through local mosques, churches, or community centers

Trust-Based System: Collateral is not required, only personal and social guarantees

Social Empowerment: Borrowers are motivated to repay society in terms of social support

Akhuwat Loan Products

1. Family Enterprise Loan
   For the establishment or growth of small businesses

Amount: PKR 10,000 to PKR 50,000

Tenure: Up to 36 months

2. Agriculture Loan
   For small farmers to buy seeds, fertilizers, or equipment

Amount: PKR 10,000 to 50,000

Tenure: 4 to 8 months

3. Liberation Loan
   Helps individuals pay off expensive loans from moneylenders

Amount: PKR 10,000 to 100,000

Tenure: Up to 36 months

4. Housing Loan
   For home renovation, roof repair, or minor construction

Amount: PKR 30,000 to 100,000 (may go up to PKR 500,000 in special cases)

Tenure: Up to 36–60 months

5. Education Loan
   For students to pay tuition, books, and academic expenses

Amount: PKR 10,000 to 50,000

Tenure: 10 to 24 months

6. Health Loan
   For medical emergencies, surgeries, or medication

Amount: PKR 10,000 to 50,000

Tenure: 10 to 24 months

7. Marriage Loan
   For wedding expenses or dowry support for daughters

Amount: PKR 10,000 to 50,000

Tenure: 10 to 24 months

8. Emergency Loan
   For unexpected crises or disasters (accidents, natural calamities, etc.)

Amount: PKR 10,000 to 50,000

Tenure: 10 to 24 months

Required Documents

Document	Description
CNIC copy	For applicant and both guarantors
Passport-size photographs	Of the applicant
Utility bill copy	Latest gas/electricity bill for address verification
Nikahnama	If applicable (especially if CNIC does not mention marital status)
Proof of income	Business or employment details (if available)

Akhuwat Foundation Loan Eligibility Criteria

To apply for any Akhuwat loan, you are required to:

• Be a Pakistani citizen between 18 to 62 years
• Possess a valid CNIC
• Be economically active and from a low-income family
• Have a good social standing and no criminal record
• Submit two guarantors (not relatives)

Live within 2–2.5 km of the nearest Akhuwat branch

How to Apply for Akhuwat Loan (Step-by-Step)

Step 1: Visit Nearest Akhuwat Branch
Visit the closest Akhuwat Islamic Microfinance (AIM) branch. You need to reside in a short distance from the branch to apply.

Step 2: Discuss with Unit Manager
Describe your financial requirement (business, education, housing, etc.). The unit manager will analyze whether you’re a candidate and walk you through the application.

Step 3: Fill Out Application Form
Complete the loan application form and submit all documents requested, such as copies of CNIC, photographs, utility bill, and income verification.

Step 4: Social & Business Appraisal
Akhuwat personnel will come to your house and/or workplace to authenticate your residential status, business potential, and social reputation.

Step 5: Guarantor Verification
The guarantors will be contacted to authenticate your trustworthiness.

Step 6: Loan Approval Committee Review
The branch manager forwards your application to the Loan Approval Committee, which usually decides within 2 to 4 weeks.

Step 7: Loan Disbursement
If approved, you will be invited to a group disbursement event (often held in a mosque or church). You’ll sign a loan agreement, and your first installment will be handed over.

Akhuwat Foundation Loan Repayment Process

Repay in monthly installments at the local branch

Payments are due by the 7th of each month

Regular follow-up guarantees timely repayment

Missed payments can result in follow-up by guarantors and Akhuwat staff

Voluntary Mutual Support Fund
Borrowers are urged (but not obligated) to contribute 1% of the loan amount to the Akhuwat Mutual Support Fund. This is used to finance loans to other deserving applicants.

Akhuwat Foundation All Branches Network

You can locate the nearest Akhuwat branch from their official website:
www.akhuwat.org.pk

Akhuwat foundation Loan 2025

Akhuwat has shown how poverty can be battled with empathy, respect, and confidence. If you’re a struggling businessperson, student, or someone in need of financial assistance, Akhuwat’s interest-free lending system might just be the supportive hand you’ve been looking for.