Interest-free microfinance
Small loans for livelihoods, education, and housing needs, with no interest.
A loan with no interest, repaid in full, then lent again.
Akhuwat Foundation is a Pakistani charity that lends small amounts to families without charging interest. Here is how that model works, what Akhuwat does, and how to avoid scams that use its name.
What is Akhuwat Foundation?
Akhuwat was founded in 2001 in Lahore by Dr. Muhammad Amjad Saqib. The name means brotherhood. It is one of the best-known interest-free microfinance organizations in the world.
Its idea is simple: a family that cannot get a bank loan can start or grow a small business if the loan carries no interest, and the same money can then help the next family.
What is Qarz-e-Hasna?
Qarz-e-Hasna means "good loan." The borrower returns only what they borrowed. No interest and no service charge is added.
Akhuwat's approach draws on the example of mutual support described in early Islamic history, and it works with people of all faiths.
How an interest-free loan cycle works
Akhuwat describes its model as a cycle. This is a simplified overview; the official site has the current rules and eligibility.
Donors fund the loan pool
Individuals and organizations give money that becomes the lending fund and covers running costs.
A family receives a small loan
Loans typically support a small business, tools, livestock, education, or housing needs.
The borrower repays the exact amount
Repayment is in installments, with no interest on top.
The money is lent again
Repaid funds go straight back into the pool for the next borrower.
Programs Akhuwat runs
Beyond loans, Akhuwat has built a set of related programs. Details and availability change, so confirm on the official site.
Education
Schooling and a university initiative aimed at students from low-income families.
Khwajasira support
Livelihood and skills support for the transgender community.
Clothes bank
Donated clothing redistributed to people who need it.
Health services
Affordable healthcare services and support for patients.
Food program
Food assistance for families in need.
How to avoid loan scams that use charity names
Warning signs
- Someone asks for a "processing fee," "file charge," or "insurance" before releasing a loan.
- A website or social page offers instant approval and collects your CNIC, selfie, or phone number.
- You are asked to send money through JazzCash, Easypaisa, or a personal account.
- The contact number comes from a message or ad, not from akhuwat.org.pk.
If something feels wrong, stop sending money and contact an official Akhuwat branch directly. You can also report online fraud to Pakistan's FIA Cyber Crime Wing.
Frequently asked questions
What is Akhuwat Foundation?
Akhuwat is a Pakistani non-profit founded in 2001 in Lahore by Dr. Muhammad Amjad Saqib. It provides small loans to low-income families without charging interest or service fees. The word "Akhuwat" means brotherhood.
What is Qarz-e-Hasna?
Qarz-e-Hasna means "good loan" in Arabic and Urdu. It is a loan where the borrower repays only the amount borrowed, with no interest added. Akhuwat's model is built on this idea.
How does an interest-free loan model pay for itself?
Repaid loans go back into the fund and are lent again to the next family. Operating costs are covered by donations, so borrowers are not charged. Akhuwat describes this as a cycle of giving and repaying.
Is this website the official Akhuwat website?
No. This is an independent information page and is not affiliated with Akhuwat Foundation. The official website is akhuwat.org.pk. Apply for loans, donate, or ask questions only through official channels.
Does Akhuwat ask for money before approving a loan?
Akhuwat states that its loans carry no interest or service charge. Be cautious of anyone who asks for a "processing fee," "file charge," or "security deposit" by mobile wallet or bank transfer before releasing a loan. Verify with an official Akhuwat branch.
How can I verify a person or website claiming to represent Akhuwat?
Go to akhuwat.org.pk and use the branch and contact details listed there. Do not rely on contact numbers from social media posts, messages, or unfamiliar websites.