Alhumdulillah, Little Deeds was formed in April, 2010 with a small capital by Tayyab Abid; it is recently a joint venture with other brothers who share the same vision: to alleviate poverty by empowering socially and economically poor Pakistani families through interest-free loans and educating them with Islamic and personal development skills. Alhumdulillah, all applicants are able to return their loans in due time. Currently, Little Deeds is operating within Karachi and Sajawal only. Following is a brief over-view of how Little Deeds works:
The process starts with the submission of applications by persons interested in getting financial assistance. The loan officer evaluates whether or not the applicant deserves the loan.
Evaluating business plans
The loan officer discusses the business plan to see if it is viable and whether it can generate income beyond the household expenses of the individual so that the loan could be repaid easily. The applicant’s family is also interviewed to ensure that they know about the loan and support the business idea.
Guarantors of loans
After the initial evaluation, the loan officer discusses the plan with the two guarantors provided by the applicant. These are two individual guarantors who vouch for his/her credentials and accept the responsibility of monitoring the borrower; they give the assurance to persuade the borrower for timely payment of loan. One of the two guarantors may be from the same family.
Loan is given in front of the guarantors. Loan disbursement depends upon the availability of funds.
Lectures and personal development
Every individual is motivated through lectures and individual counselling to develop following qualities:
- Emphasis on performing Salah
- How to improve and develop manners and relationships
- Emphasis upon children’s education
- Protection and improvement of environment
- Following highest ethical values in business
Once the loan has been disbursed, the loan officer monitors the applicant with regular visits to his residence and place of work. Repayment has to be submitted to the officer by the 10th of each month. In case of any defaults or fraud, we would exclude the area from our circle of operations; knowing this, the elders of the society put social pressure on the applicants to continue paying off their debts.
Interested individuals can help Little Deeds through Duas, donations, spreading the word about it, informing Little Deeds about deserving people, and helping with fund-raising.
Little Deeds – Success Stories
Highlights of the year 2010 – 2011
- Loans given to 57 people
- 0% fraud cases
- More than 20 people have returned their loans
- Ramadan Iftaris for over 1300 people in 2010-2011
- Ramadan Rashan distribution to over 300 families
- More than PKR 2.0 distributed in Zakat funds
- Team of six dedicated members
Brother Tayyab can be contacted at email@example.com.