Ehsaas Naujawan Programme: Role of Akhuwat Islamic Microfinance in Empowering Youth through Interest-Free Akhuwat Loans– Hurry Up and Apply Now!

The government of Khyber Pakhtunkhwa has initiated a programme under the name of Ehsaas Naujawan Programme in which interest free loans are going to be distributed among deserving youth.The budget for Ehsaas Naujawan Programme is set at PKR 3 billion. This programme is funded through two financial funding components. One of them is Bank of khyber and the other one is Akhuwat Islamic Microfinance Institute (AIM).

How to Apply for Akhuwat Loan?

For Apply Akhuwat Loan, The Potential Applicants must visit the nearby Akhuwat Islamic Microfinance Branch!

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These PKR 3 billion are divided between these two financing bodies. The amount of pkr 1 billion are going to be distributed among youth through Bank of Khyber while 2 billion is going to be distributed through Akhuwat Islamic Microfinance Institute (AIM).

This component aims at two types of proposal holders:

  • Young potential entrepreneurs who are interested in starting small businesses in e-commerce, digital marketing, etc
  • Young entrepreneurs who are already affiliated with any existing small-scale business and need capital to expand. 

These loans are provided by Akhuwat Microfinance Bank. This component offers smaller loans, ranging from 0.1 to 0.5 million PKR to the individuals aged between 18-40 years. They are aimed at those who need minimal capital to start small scale businesses or micro-enterprises. These loans are accessible to youth from marginalized groups such as minorities, disabled, women or other people from low-income background.

Khyber Pakhtunkhwa and (formerly FATA) newly merged (tribal) districts has always suffered a lot and so does its residents. Previously the same sort of scheme was introduced named as Ehsaas Naujawan Rozgar Scheme which offered grants providing financial assistance to youth for establishing their start-ups/ businesses in the form of non-refundable grants. now the same nature scheme shall be implemented with different model, that is, instead of grants; interest free loans shall be offered.

The loan size is Rs.500,000/- with total period of principal repayment of Thirty Six (36) months to Sixty (60) months with equal installments right after the commencement of the loan.

akhuwat component of ehsaas naujawan

Given the Akhuwat Islamic Microfinance Institute (AIM),established credibility in the Province, the following value added features makes it optimal choice for the programme objectives on the broader scale:

  • Riba-Free Microfinance: AIM (Akhuwat Islamic Microfinance Institute) is the only Shariah-compliant microfinance organization operating in Khyber Pakhtunkhwa.
  • Branch Network: AIM operates 90 branches in 28 districts of Khyber Pakhtunkhwa, including merged districts, where no other microfinance institution is present due to local religious sensitivities and security concerns.
  • Pioneer in Interest-Free Microfinance: AIM is the world’s largest interest-free microfinance institution, with more than 850 branches across Pakistan.
  • Large-Scale Impact: AIM has disbursed over 6.3 million interest-free loans amounting to Rs 230 billion, showcasing its ability to serve a large number of beneficiaries.
  • High Recovery Rate: AIM maintains a recovery rate of approximately 99.90%, demonstrating its capability to manage credit risks and safeguard government funds.
  • Decades of Experience:  With over two decades of experience, AIM possesses a deep understanding of the unique challenges and opportunities for borrowers in Pakistan.
  • International Recognition: AIM enjoys a strong reputation both nationally and internationally, having received multiple accolades for its work in empowering the underprivileged.
  •  Robust MIS: AIM’s advanced Management Information System (MIS) ensures efficient operations, effective data management, and timely reporting to the government.
  •  Regulatory Compliance: AIM is registered and regulated by the Securities and Exchange Commission of Pakistan (SECP).

Akhuwat Islamic Microfinance’s partnership in the Ehsaas Rozgar program offers a sustainable, equitable solution for youth economic empowerment in Khyber Pakhtunkhwa. Through its interest-free loans, extensive reach, and Shariah-compliant approach, Akhuwat is actively shaping a brighter economic future for young Pakistanis, especially those from under-priviledged backgrounds. This initiative reflects a solid step toward reducing youth unemployment and nurturing a thriving entrepreneurial ecosystem across the province.