Small Industries Corporation

Azad Jammu & Kashmir

Interest free loan



1 Approved Cost Rs. 298.976 million
2 Date of Approval & Completion 28-02-2018, 28-02-2023
3 Project Objectives
  • Provision of interest free loans to approximately 1,31,655 Beneficiaries. 
  • Self-employment.
  • Poverty alleviation.
  • Enhancing economic growth.
4 Project Duration 5 years extendable up to 10 years
5 Loan limit Up to Rs. 0.075 million.
6 Average loan size Rs. 0.030 million.
7 Interest rate to borrower 0% (Interest free).
8 Repayments period of loan Up to 3 years.
9 Target Group
  • Small scale entrepreneurs including agriculture and livestock.
  • Un-employed & skilled persons.
  • Un-skilled person to start up or expand business.

Eligibility Criteria for Loans

Following general points are compulsory for eligibility of loan:

    • Applicant should have valid CNIC.
    • Having the ability to run / initiate business activity having age between 18-62 years.
    • Applicant should be economically active.
    • Applicant should not be convicted of any criminal offence in lieu of which proceeding are in progress.
    • Applicant should have good social and moral character in his community.
    • Applicant should have capacity to provide two guarantors other than family members.
    • Applicant should be resident of operational area of branch office which might be around 2-2.5 KM radius.
    • Note: – Project specific eligibility criteria may be varied.

Lending Methodology

    • AIM’s lending policy involves disbursement of interest free or Qard-e-Hasan loans through
    • Group Lending
    • Individual Lending
    • However, decision of lending methodology depends upon the loan product as well as project specific requirements.

Group Lending

Group Lending includes disbursement of Qard-e-Hasan loans among groups of men and women who are looking forward to enhance their family income but are unable to do so due to scarce resources. In group lending methodology groups of 3 to 6 members will be formed, all group members would guarantee loans and credentials of each other. Group Lending enables group members to resolve their social and economic problems through mutual understanding and decision making.

Before applying for a loan, applicant is supposed to constitute a group of 3 to 6 members residing nearby to each other and members shouldn’t be close relatives to each other.

Individual Lending

Individual Lending includes disbursement of Qard-e-Hasan loans among individuals. Loans are offered to certain individuals that fulfill the eligibility criteria of scheme in order to facilitate them to meet their needs through interest free loans. In case of individual lending two guarantors will be provided by applicant for availing interest free loan.

Application Submission

The loan process will start with the submission of application. The application fee may vary from scheme to scheme. The unit manager will then evaluate the application through eligibility criteria. Thus, these loans will be given out on social collateral. The following steps will be followed in application submission.

Applicant will visit nearest AIM branch along with his/her relevant documents (mentioned below) for submission of loan application.
Unit manager will discuss with the applicant to check whether applicant falls under eligibility criteria of the scheme.
Potential candidate will submit loan application on prescribed form. Loan application will be provided and filled by AIM staff in branch office.
Unit manager will check documents and application will be processed after completion of required documents.
The following are the details of collaterals that may be applied for loans:

  1. Personal responsibility
  2. Two guarantors
  3. Postdated cheques
  4. Any additional collateral in special case.
Following documents shall be submitted along with loan application:
Sr. No. Documents Persons Mandatory/ Optional Objective
1. Copies of CNIC Applicant


Family Member




  • For Identification
  • For verification in Management Information System (MIS)
  • Bank Requirement for collecting money
2. Latest Utility Bills Applicant Mandatory
  • For address verification
  • To assess Payment Behavior
3. Latest Photos Applicant Mandatory
  • For identification
4. Copy of Nikahnama Applicant Mandatory

(may be waived if not available after verification by other means)

  • For identification in case CNIC of wife is not with the name of husband
Note: – Additional documents may be demanded according to scheme’s requirements.

Social Appraisal

Social appraisal aims to verify character and credibility of the applicant by visiting his residential place. After receiving the Application, unit manager performs social appraisal through following methods.

  1. Information from existing borrowers
  2. From the living style of the applicant
  3. Views of neighbors about the applicant
  4. Personal interview/ family interview

Business Appraisal

Through the scrutiny of business plans the business idea of the intended borrower will be evaluated to see if it is viable and whether it can generate income beyond the household expenses sufficient for loan repayment. Business requirement is evaluated in business appraisal. This will also help fine-tune the applicant’s business idea itself. The applicant’s family will also be interviewed to make sure that they know about the loan and support the business idea.

Second Appraisal:

After initial appraisal by the unit manager, the application will be forwarded to Branch Manager who will appraise the social and business appraisal process once again and conduct a meeting with borrower and their guarantors.

Guarantors of Loans

In cases of individual lending every applicant will provide two guarantors who vouch for his/her credentials and accept the responsibility of monitoring the borrower and give assurance to persuade the borrower for timely payment of loan. Whereas in group lending the members of the group would guarantee each other and thus formally constitute a group.

Loan Approval Committee (LAC)

Every branch will have its own Loan Approval Committee (LAC). The committee is headed by the Area Manager, and other members of the committee are unit managers and Branch Manager. All credit cases will be reviewed by the committee. If the committee approves the case, loan is finalized and is ready to be disbursed. The whole process takes almost 3 to 4 weeks.

Fund Request & to head office

Once loans are approved by Loan Approval Committee (LAC), required amount of funds is requested to head office through Regional Manager. Head office makes necessary arrangements for transfer of funds into their respective bank account for disbursement. Area accountant has been intimated once funds are transferred to their bank account. Area accountant prepares the cheques for disbursement for approved applicants.

Loan Disbursement

Disbursement will take place once in a month and loans would be disbursed through event usually held at mosque or church. In case of individual lending, applicant has to be accompanied by at least one of the guarantors. In case of group lending all group members should be present at the time to disbursement.
Following are some points relevant to the loan disbursement event:
Every individual will be present at time of the disbursement. In case any borrower is absent, loan will not be disbursed and may be cancelled.
All borrowers will bring their original CNIC in the disbursement event.
Borrowers would receive cheques of the loan amount sanctioned to them.
Acknowledgement of cheques would be taken from each borrower.
The disbursement event would be monitored by Area Manager.

Social Guidance

Social Guidance is also briefed simultaneously at the disbursement events in which the capacity of borrowers will be built to carry on their work more efficiently and effectively particularly keeping in view the Islamic or ethical principles.
Social agenda items include:
Emphasis on girls’ education
Serving the community at large
Protection and improvement of environment
Importance of plantation
Observance of traffic rules and local laws
Following highest ethical values in business

Recovery & Follow up

Once the loan has been disbursed, the unit manager monitors the client with regular visits to his residence and place of work. The loan repayment has to be made at the branch till the 7th of each month. If a payment is not in by the 10th, the unit manager visits the client to remind and if repayment is still not made then the guarantors are contacted and asked to make the payment.

Azad Kashmir Small Industries Corporation, Akhuwat Branches Details

Sr. No District   Name of Branch Branch Manager  Cell Phone # Address of Branch
1 Neelam (2) i Shardha Ashfaq Ahmed 0355-7084594 Akhuwat Office Sharda Chak Opp Army Camp Velly Wakors Guest House
ii Athmaqam Tanveer Ahmed 0355-8502905 Ziyarat Mohalla Near Admin Service office Athmaqam
2 Muzaffarabad (5) i Muzaffarabad Muhammad Ramzan 0344-8834702 Ghari Pan Chowk Domail Syedan Opposite All Sadat General Store Muzafrabad
ii Muzffarabad-2 Muhammad Uzair 0315-5165068 Near Paracha House , Katha Wali Masjid Muzzafarabad
iii Chehla Bandi Muhammad Ehsan 0341-8947503 Chella Bandi Near HBL Neelum Ada Road Muzaffarabad
iv Patika Muhammad Aaqib 0355-6259826 Akhuwat Office Main Bazar Patika Near Naseer Abad Old BISP Office
v Garhi Dupatta Fazan Shahzad 0345-9909690 Akhuwat Office Main Srinagar Road Near PSO Pump Ghari Dupatta
3 Jehlum Valley (1) i Hattian Bala shahzad Zafar 0345-2350540 Akhuwat Office Pull Bazar Near Masjid Al Mustafa Hattian Balla
4 Bagh (3) i Bagh Sheikh Shafait Muhammad 0341-5186014 Akhuwat Office Hasan Abad Kaloni Dhulli Road Opposite Turkey Masjid Bagh
ii Harighel Muhammad Zeeshan 0310-1333089 Akhuwat Office Main Harighel Bazar Near Read Foundation Middle School
iii Dhir Kot Asim Ali 0348-1405673 Akhuwat Office Main Muzaffarabad Road Near Nadra Office Dhir Kot
5 Haveli (2) i Haveli Kashif Latif 0341-9616872 Akhuwat Office Haveli Near Hafizaan Wali Masjid Haveli
ii Mumtazabad Raheem Arif 0355-6025805 Akhuwat Office Main Bazar Palange Jamia Faiz Madinda Masjid Mumtazabad
6 Poonch (5) i Rawalakot Saima Naseem 0334-9499746 Housing Scheme Near Al Huda International Welfare Rawalakot
ii Thorar Nouman Khan 0346-5069771 Akhuwat Office Main Bazar Thorar Near Yadgar 
iii Khai Gala Muhammad Arshad 0346-9613699 Akhuwt Office Oppisite Bilal Hospital Rawalakot Road Khai Gala
iv Abbaspur Muhammad Zeeshan 0346-6044143 Akhuwat Office Near Ahl E Hades Masjid Opp U Fone Tower Abbaspur
v Hajira Tahir Abbas 0341-9719504 Akhuwat Office Gahghar Palaza  By Pass Road
7 Sudhnoti (4) i Pallandari Zohaib Hassan 0341-8945948 Hameed Palaza Near Nadra Office Pallandri
ii Mang Asif Iqbal 0344-2011712 Akhuwat Office Main Bazar Mang
iii Tarar khal Muhammad Amir 0344-2011712 Akhuwat Office Near HBL Bank Baipas Road Trar Khel
iv Balouch  Fawad Tariq 0345-3809544 Akhuwat Office Baluch Main Bazar Near Post Office 
8 Kotli (7) i Kotli Ammar Shakeel 0355-6242939/ Behind GPO Office Kotli
ii Nakial Shahid Hussain 0348-5327048 Akhuwat Office Near Degree College Nakyal City
iii Khoi Ratta Muhammad Suleman 0346-5362061 Main Bai Pass Road Mehmood Plaza Khoi Ratta
iv Charoi Waqar Younas 0347-8568154 Akhuwat Office Near Vip Hotel & HBL Bank Chahroi
v Darlian Jattan Saeed Ahmed 0345-8083916 Nazd SCO Office Rajdhani Tehsil Darlian Jattan District Kotli
vi Sehnsa Zahoor-Ur-Rasheed 0311-4959526 Kohnoor Plaza Jambu Chook Sehansa
vii Sarsawa Muhammad Rauf Ul Hassan 0346-5134061 Akhuwat Office Panchera Bazar Near Palandri Adda Sarsawa
9 Mirpur (4) i Mirpur Mobeen Hassan 0345-5667276 Akhuwat Office Ban Khurma Road Rabnwaz Plaza Near ZTBL Bank
ii Jatlan Ghayyur Abbas 0335-5909461 Akhuwat Office Nawa Garan Road Near Tayyab Acadmy 
iii Chakswari shuhaieb iftkhar 0310-4210050 Hameed Abad Colony Boys Govt School Near Kashmir Bakery Mirpor Chakswari
iv Dadyal Ayyaz Ahmed 0345-9269010 Akhuwat Office Mirpur Road Gorsy Palaza But Sheet Chowk Naar Pakistan Post Office Dadyal
10 Bhimber (3) i Bhimber Rizwan Ullah 0332-5571685 Akhuwat Office Mahallah Qasim Abad Near Datta Furniture Arry Wali Gali, Adeel House Bhimber Aj&K;
ii Barnala Munawar Hussain 0341-4614607 Main Road Bimber & Barnala  Near Police Station Barnala
iii Samahni Umar Shahzad 0345-3518667 Main Bazzar Chowki Samahni