LAHORE: Minhajul Quran, a sister wing of the Pakistan Awami Tehreek (PAT), on Saturday launched “interest-free” Al-Muwakhat Islamic Micro-Finance Project designed to provide small loans to those who want to start their businesses.
Speaking at the launch ceremony, Hassan Mohiuddin Qadri, son of PAT head Dr Tahirul Qadri, said the basic purpose of the effort was to help people create economic lifeline for the beneficiaries.
The project, he said, would be “product based,” meaning thereby that the loans would not be provided in cash, but kind only. “If someone needs a rickshaw, he will be provided the vehicle and not cash. The organisation will not charge any interest on loan but only small administrative charges covering cost of service provision,” he said.
He conceded that this was not going to be a unique plan as many such were already in vogue. But the only difference is “dignity of the loanee would not be at stake.
Similarly, the Minhajul Quran students who want to set up their own businesses would also get the benefit.
This, he said, is a pilot project. Soon, the organisation would decide how it plans to expand in future: weather it would involve donors or the organisation itself would generate funds for expansion.
He also distributed keys of 10 motorcycles for which the loan would be recovered in 18 installments.
About the recovery in one-and-a-half months, a party spokesman said a lot of research had gone into the recovery period fixation. After comparison with other such institution, it was found workable time-frame, he said.
The organisation also plans to launch a business and technical training plan in the university. It would also encourage its student to conceive business plans and the organisation would try to help them set it up.