Social Impact Assessment of Microfinance Programmes - weman

client during the verification and disbursement process. When Akhuwat finally hands
over the credit amount, it is done in the mosque in the presence of the witnesses, which
makes the witnesses quite nervous at times. They should review this entire witness
process.’
(Male Participant, Township, Lahore)
According to some clients, it was also difficult to find people who are prepared to act as
guarantors on behalf of the borrower. Many times people were hesitant to verify and act
as witnesses for credit applications as they were scared that in case the borrower is unable
to pay back, Akhuwat would hold them responsible.
‘We have to beg people to come with us as a witness. Once I had to pay a witness Rs.
200, because he was a daily wager and could not go to work because of me.’
(Male Participant, Shah Jamal, Lahore)
One client mentioned that the membership rate was too high and should be brought down
(around 6.2 percent of the total loan cost); however, the other group members quickly
justified this rate on the basis that other than this there was no interest on the loan, which
was a major relief.
There are other MFIs also operational in the area. XX and YY ‘also provide credit but
their interest rates are much higher, and also the procedures are comparatively more
complicated. The Akhuwat methodology is more appropriate for people like us.’
(Male Participant, Shah Jamal, Lahore)
Presently, the productive loan category is the loan type most frequently provided by
Akhuwat. As a result, borrowers had a low awareness level about any other loan. Clients
said that they only knew that Akhuwat gave loans for productive purposes and not for
any other use.
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