Islamic teachings inspire loans to poorest

Islamic teachings inspire loans to poorest: "slamic teachings inspire loans to poorest
By Zofeen Ebrahim
Updated Mar 22, 2006, 12:47 pm Refer this article
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* The Islamic Banking System (University of Malaya, 1988)

LAHORE (IPS/GIN) - When Shamim Akhtar’s 20-year-old daughter developed an acute case of ulcers last year and was hospitalized, she had little choice but to approach a neighborhood lender and borrow 20,000 rupees ($330). At 200-percent interest, it meant that she had to pay Rs 2,000 ($30) to the lender every month. In 18 months, she had paid Rs 36,000 ($600) as interest.

A couple of months ago, she heard of Akhuwat (brotherhood), a Lahore-based, non-profit organization that gives out interest-free loans to poor people, and even settles the outstanding amount. Akhuwat calls it “liberation loans.”

Now, Akhtar is one of 400 people, mainly women, whom Akhuwat has liberated from the clutches of loan sharks. “We really target the poorest of the poor, the ones who cannot even access microcredit,” says Amjad Saqib, the executive director."