ESAR Micro-Finance

2. ESAR Micro-Finance ایثار مائیکروفنانس Arshad Mehmood Head of ESAR Program 3rd Islamic Microfinance Forum 8th October 2013, Dubai-UAE

3. Vision Helping Hand as a Leader... Empowering lives, creating opportunities and strengthening the bond of humanity • Mission Helping Hand is committed to serve humanity by integrating re-sources for people in need. We strive to provide immediate response in disasters, and effective programs in places of suffering, for the pleasure of God. Helping Hand for Relief and Development-HHRD

4. HHRD was established to fulfill the responsibility of Muslim community towards humanity regardless of race, gender, ethnicity, class, location, religion, color, cultural diversity and social background. “Who feed the poor, the orphan, and the captive for the love of Allah, (saying) ‘We’ feed you for the sake of Allah Alone; we seek from you neither reward nor thanks, for we dread our Rabb’s(Lord) torment of a very distressful Day”. (Qur’an Surah 76, verses 8, 9, 10) “Muslims for Humanity”

5. Health • Emergency Response • Physical Rehabilitation • ESAR Microfinance • Skills Development • Orphan Support Program • Water for Life • Infrastructure Development • Education • Seasonal Program • In-Kind Donations Program • Children with Disability Support Core Programs of HHRD

6. To facilitate and support livelihood opportunities and microenterprise development for poverty alleviation through provision of Islamic Microfinance as a Flagship Program of HHRD ESAR Microfinance’s Mission

7. To enable economic wellbeing and resilience for people with low incomes, especially suffering the disaster, through interest free microfinance. • Provide social assistance, capacity building and integrated development ingredients to support the poor break the poverty cycle by creating the spirit of brotherhood. • To institutionalize the ESAR Microfinance Program regarding sustainable, growth-oriented and replicable one. ESAR Program’s Objectives

8. History

9. Progress

10. Qarad e Hasan • Murabah • Mudarbah Modes of Financing

11. HHRD’s Interest Free Microfinance – IFMF Program ◘ Chitral ◘ Gilgit ◘ Swat ◘ Dir ◘ Mansehra ◘ Hattianbala ◘ Malakand Charsada ◘ ◘ Rawalakot Nowshera ◘ ◘ Kotli ◘ Rawalpindi ◘ Mianwali ◘ Ziarat ◘ Muzaffargarh ◘ Rajanpur ◘ Bahawalpur ◘ Jaffarabad ◘ Jacobabad ◘ Kashmoor ◘ Shikarpur ◘ Benazir Abad ◘ MirpurKhas ◘ Matiari ◘ Tando Allah Yar Outreach ◘ Thatta

12. Cluster Base Approach • Participatory Approach: Community oriented • Interest Free: Islamic Modes of Financing • Sustainable: Operational Self Sufficiency • Universally Replicable • Branchless Network with Online System • Shariah Certified • Enhancement of Income Generating Activities • Livelihood Supportive with Capacity Building Component • Breaking the Poverty Cycle through Integrated Approach • Humanitarian Essence • Believed in Potential of Poor • Transparency through third Eye (through Community Humanitarian Forums) Features of HHRD’s Model

13. Recovery & Follow up • Disbursement • Community Mobilization & Organization • Target Group Identification • Base Line Survey • HR Selection & Facilitation • Area Identification Implementation Strategy

14. Area Identification • Acutely affected during any disaster and declared by concern authority • Relief activities completed • Special area identified by donor • Human Resource Selection & Facilitation • Microfinance Facilitation Officer – MFO work at cluster level • Locally announced for suitable candidate, having master degree and preferred development sector experience • Test and interviews held and appointed at merit • Capacity building regarding field operation and basic concepts • Facilitation regarding transportation, mobile phone, laptop, internet, camera etc. Cont.

15. Base line survey. • Identification of Activists • Union Council Profile • Village Profile • Identification & Selection of Beneficiaries. • Individual meeting with people who engaged with different Income Generating Activities (IGAs) • Dialogs. • Mobilization. • Selection of beneficiaries. Cont.

16. Community Mobilization & Organization. • Program Introduction. • Listing the members, there should be 15-25 members in a CO/MC. • With mutual consultation, members elect their President and Manager. • Every member make saving as possible. • To fix the time, day and location for the meeting of CO/MC and lay stress on the 100% attendance. • Community Organization (CO)/Market Committee (MC) formed. Cont.

17. Disbursement. • CO/MC nominates the potential borrowers and passed resolution. • Borrower appraisal by Microfinance Facilitation Officer (MFO). • Appraisals sent to Head Office along with CO/MC resolution and two pictures & copy of valid CNIC. • Appraisal analysis and verification. • Delivery of cheque. • Agreement b/w HHRD & beneficiary. • Distribution of cheques/items. • Repayment. • Repayment in 10 monthly installments or lumsum. • Recovery through CO/MC. • Follow-up and assistance. Cont.

18. Microfinance Facilitation Officer CO & CFC Initial Stage Field Level Scrutiny Appraisal Social Mobilization Beneficiaries Identification Regional Coordinator Program Officer MFC Country Director In-depth Analysis Approved Rejected Assistance Mechanism Recovery Follow up Disbursement Financing Mechanism

19. Sustainable Financial Model

20. Working Model

21. Problem Solution Result Received seed and fertilizer from money lender. The price was very high. Delivery not timely. Bounded to sale out the production to same money lender. Sale price low compared to market price. Financial assistance with out exploitation Got seed and fertilizer from HHRD on Murabah bases having amount PKR 35,000 • Abdul Majid from Batakundi, Naran Valley – earthquake affected area and Pea farmer Got required inputs at low price and timely Sale out the production in open market Got PKR 70,000 additional benefit Shifted his kids to upper level school Purchased some household items Case Study

22. A Beneficiary from Thana-Malakand A Beneficiary from Agra-Charsada Distribution Ceremony Naran Valley A Beneficiary from Madyan-Swat Distribution Ceremony Kalam-Swat A Beneficiary from Nowshera KPK A Beneficiary from Lower Dir A Beneficiary from Shinkiari Material handing over at Chitral

23. Distribution at Rawalpindi Community Meeting at Jampur Distribution at Kot Addu Distribution at Mianwali A Beneficiary at Goth Mehrab Bahawalpur A Beneficiary at Tiba Badar Sher Bahawalpur Punjab

24. A Beneficiary at Sultan Kot-Shikarpur A Beneficiary at Tando Hafiz Shah-Thatta Introductory Meeting Zhair Pir-Matyari Community Meeting at Bandhi-Nawab Shah A Beneficiary at Thulli-Jaccobabad Community Meeting Tando Allah Yar Sindh A Beneficiary at GhousPur-Kashmoor

25. A Beneficiary at Dirgi-Jaffarabad, Baluchistan Distribution Ceremony at Ziarat, Baluchistan Baluchistan & GB Distribution of Items at Jaglot-Gilgit

26. Distribution of Sewing Machines at Tarala-Kotli A Beneficiary in her Kitchen Garden, Hurnamera-Rawalakot Community Meeting at Lamnian-Hattian Bala AJK

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