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Established in 2011, Akhuwat USA works to reduce poverty through interest-free microloans, capacity building, and social guidance. It is affiliated with and supports AKHUWAT, which was founded in 2001 with US $100 and today has expanded to include over 750 branches in 350 cities of Pakistan, a UK branch, a microloan portfolio of over US $110m active loans, and a recovery rate of 99.97%. Akhuwat’s unique model is being taught as a case study at a US and a UK university.


A poverty-free society built on the principles of compassion and equality.

To alleviate poverty and empower socially and economically marginalized families through interest-free micro-finance and by harnessing entrepreneurial potential, capacity building and social guidance


Akhuwat provides the economically poor with interest-free loans so that they may acquire a self-sustaining livelihood.

It also provides the skills, professional guidance and support they need to actualize their full potential and abilities.


The funds collected for Akhuwat USA are used solely for the purpose of disbursing interest-free loans to the unprivileged in Pakistan.

We are also raising funds for our upcoming project, Akhuwat University, which will provide state-of-the-art but affordable education to the poor.


Our Founding

In 2001, a group of friends came up with the idea for Akhuwat at the Lahore Gymkhana. They were critical of microfinance programs that aimed to alleviate poverty but charged exorbitant interest rates. The idea of initiating a successful interest-free microfinance program was brought forth as a challenge, although at that point, no one knew exactly what this experiment would look like. One of the friends pledged a donation of 10,000 rupees, while another friend, Dr. Amjad Saqib, decided to put that donation to use as an interest-free loan.

The First Loan

Akhuwat gave its first loan of $100 USD to a widow who was striving to earn a decent living through honorable means. She wasn’t looking for charity; she was only seeking a helping hand. By utilizing and returning that loan within a period of six months, she reinforced the belief that when we help the poor with trust and respect, they exhibit unshakable integrity.

The success of that first loan brought in more donations, and that group of friends became convinced that their venture into interest-free microfinance was viable. And so, Akhuwat was born, with these friends forming the first Board of Governors and Dr. Amjad Saqib serving as the first Executive Director.

This marked the beginning of a new chapter in microfinance, one that found its inspiration not only in economic logic, but in the spirit of compassion and generosity.

The Principle

One of Akhuwat’s primary deviations from conventional microfinance is that it charges no interest rates.


Akhuwat has sought to base its movement on the principles of Qarz-e-Hassn found in the Islamic tradition, which entails helping someone in need with interest-free loans, a practice favored over charity and doles. While drawing on the tradition of Qarz-e-Hassn, Akhuwat has, over time, grown to incorporate many of the lessons learned from conventional microfinance movements from across the globe, as well.

Wall Street Journal 

Featuring Akhuwat


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