ABSTRACT
This chapter focuses on the Akhuwat model as a contrast to the standard microcredit model. While the growth of microcredit in Pakistan has been very rapid from a small base, that of Akhuwat has been meteoric. Akhuwat has 17 members of the Board of Directors that meet quarterly. Some branches have a steering committee comprised of eight to ten prominent individuals living in that area and two representatives from Akhuwat, generally the Area and the Branch Managers. Akhuwat has been expanding rapidly based on community solicitations. Akhuwat has tapped into this context specific value system to build a revolving fund and uses this to provide small loans for enterprises in keeping with Islamic economic philosophy. The Akhuwat model of loan delivery encompasses an institutional innovation. Once applications for the loans are reviewed, those who qualify are invited to the community mosque, both men and women.
