As part of our aim to lift families out of poverty, we have been implementing microfinance projects across the world.
In Karachi, Pakistan, we are working with our partners to provide small business loans to 1500 members of our Khoja community. These loans will allow people to build and expand their businesses, through purchasing stock, renting premises, and other business-related costs, in the hope they can increase their income and become self-sufficient, building better lives for their children and future generations. Unemployment often pushes people to start their own businesses, as they look for not only immediate income but also a stable income so they can provide for their families. This is the case of a number of our loan recipients and we have seen firsthand that their income has increased due to these loans.
Each of these loans will be repaid and the same amount will be loaned out to other businesses, keeping the entire process and microfinance scheme self-sufficient. Repayments have already begun and we are reaching more families already.
So far, the small businesses we have given loans to include shops selling electrical items, mobile phone shops, car and auto parts, and various other retail outlets.
One of our recipients is 32-year-old Muhammad*. When he was young, he used to help his dad sell things from a street cart, learning from a young age about the importance of being a self-starter. He was working for a garment factory when he was older, but after losing his job he decided to open up his own shop. He rented a store near his house and opened a general store. In order to purchase inventory and stock his store, he came to us for a loan, which was processed within three weeks. Due to the loan and higher profits it resulted in, he was able to buy his own house, cover his own expenses, his sister’s wedding, and provide his child with a good education. He has since come back for more loans, to further expand his business and is doing remarkably well.
This model allows people to access the financial support their business needs and repay it, allowing more people to benefit from the ongoing service.