HEWT FOUNDATION

LET'S END POVERTY, ONE BY ONE

What is Qarz-E-Hasna?

Qarz-e-Hasna is essentially an interest-free loan. In Qarz-e-Hasna, the lender does not charge any interest on the principal amount borrowed. The primary motive behind offering a Qarz-e-Hasna loan is to help individuals in financial distress. It reflects a spirit of generosity and charity.

While the loan is interest-free, there may be terms and conditions associated with Qarz-e-Hasna loans, such as a repayment schedule, the purpose of the loan, and the borrower's ability to repay. However, these terms are typically more lenient than those of commercial loans.

Borrowers are encouraged to repay the borrowed amount once their financial situation improves. This repayment can be used to help others in need, continuing the cycle of charitable giving.

How Qarz-e-Hasna is different from Micro Financing?

Qarz-e-Hasna and microfinancing are both financial assistance mechanisms, but they differ significantly in terms of their principles, objectives, and operation:

Qarz-e-Hasna

Micro Finance

Interest-Free: Qarz-e-Hasna is an interest-free loan provided typically within a community or charitable context. The lender does not charge any interest on the borrowed amount.

Interest-Bearing: Microfinancing involves providing small loans to individuals or small businesses, typically in underserved or low-income communities. These loans come with interest rates and are provided by microfinance institutions (MFIs).

Charitable and Benevolent: It is primarily based on the principles of charity and benevolence. The focus is on helping those in need without seeking financial gain in return.

Financial Inclusion: Microfinancing aims to promote financial inclusion by providing access to credit and financial services to those who are excluded from traditional banking systems.

No Profit Motive: The lenders expect the borrowed amount to be returned but without any interest. The primary motivation is to assist the borrower rather than earn a financial return.

Profit-Oriented: Microfinance institutions are usually for-profit organizations. They charge interest on loans to cover operational costs and generate income.

HEWT‘s Qarz-e-Hasna for Small Business Establishment

HEWT's Qarz-e-Hasna program is dedicated to supporting the establishment of small  businesses for individuals, with an emphasis on supporting women while also extending this opportunity to men. All of whom must meet HEWT's criteria for deserving applicants who meet specific criteria as defined by the HEWT. The program is designed to empower financially disadvantaged individuals who have the potential to run small businesses and are committed to returning the borrowed amount through easy 12 monthly installments.

The key elements of this initiative include:

Financial Assistance for the Deserving

Entrepreneurial Potential

Integrity and Repayment Commitment

Supporting Small Businesses

Empowering the Disadvantaged

Focused on Deserving Applicants

12 Monthly Installments

Empowering Through Entrepreneurship

HEWT's Qarz-e-Hasna program is for small business establishment is centered on financially disadvantaged individuals who possess the capability to operate small businesses and have the integrity to fulfill their repayment commitments. This initiative aligns with HEWT's mission of fostering economic empowerment and self-reliance within deserving communities.