ANALYSIS OF INTEREST FREE MICRO CREDIT SCHEME OF AKHUWAT IN DISTRICT MANSEHRA, KPK: IMPLICATION FOR POVERTY REDUCTION AND RURAL DEVELOPMENT IN PAKISTAN

*Microcredit is considered as a strategy for poverty reduction & rural development. Poor people may invest small loans in farm or non-farm activities for income generation to secure their livelihoods. Most of the micro-credit schemes in Pakistan are based on interest but there are few organizations; Akhuwat is one of them who claim that they offer interest-free loans. The present research project took the Akhuwat as case study. Akhuwat adopted the concept of ``Qaraz-e-Hassna`` or simply interest free loan. The present study was conducted on the basis two guiding questions of research. The methodology for this research project was based on qualitative data collection however & quantitative data was also used on limited scale to elucidate the qualitative data. It was concluded that majority of the respondents got the loan for expansion in existing business. 80% of the respondents utilized the loan for intended purpose. Education, food and was ranked at 1 st , 2nd and 3 rd order respectively by the respondents impacted by Akhuwat loan scheme.