Market Trend:

In Pakistan eight microfinance banks and many microfinance institutes are providing
their services to the poor for the purpose of poverty alleviation. The microfinance
products available in Pakistan are:

 Family loans
 Housing loans
 Educational loans
 Wedding loans etc

But in Pakistan, beggar’s loans are not provided by

any microfinance bank as well as microfinance
institute. AKHUWAT takes an inititative as to design
beggar’s loans in order to increase its product line
against poverty.
This type of loan was introduced in GRAMEEN
BANK in 2002 for extended its lending activities.
These loans are interest free loans and the beggars are
not required to make a group for taking loans. They
are required only return the amount of loan and
repayment terms is flexible for them. There is no
pressure for pay-back in 3 to 4 cycles become a
process that changes people’s lives. The loan officer gently suggests them to start up to
sell something along outside begging. The amount of beggar’s loan is small. More than
10% have reduced out of begging and poverty. The recovery rate of loan is about 77%.
The GRAMEEN BANK has the positive result of beggars loan, 5000 beggars were
This success of GRAMEEN BANK shows that to give loans to the beggars also works. If
AKHUWAT launch this microfinance it will be helpful for alleviating the poverty.