KHIDMAT-E-KHALQ FOUNDATION (KKF)
Recoverable Financial Assistance (Qarz-e-Hasana) Policy
1. Title
This policy shall be known as the “Recoverable Financial Assistance Scheme (Qarz-e-Hasana)” of Khidmat-e-Khalq Foundation (KKF).
2. Objective
The objective of this scheme is to provide interest-free financial assistance to genuinely needy individuals on a humanitarian basis, without any profit motive, ensuring dignity and support during difficult circumstances, while encouraging community participation and social responsibility through voluntary association with KKF.
3. Nature of Assistance
The assistance provided shall be interest-free (Qarz-e-Hasana). It shall be treated as recoverable support and not as a commercial loan. The scheme shall function as a revolving fund, where repaid amounts are reused to help other beneficiaries.
4. Eligibility Criteria
Applicants must be financially needy, have a genuine reason (medical, education, emergency, or livelihood support), and must successfully complete the verification process conducted by KKF. The applicant is encouraged to associate with KKF as a member or volunteer and contribute towards its social and humanitarian activities; however, such participation shall remain purely voluntary and shall not affect eligibility for assistance.
5. Approval Authority
All applications shall be reviewed by the Core Committee. Approval shall be granted based on majority decision. The decision of the Committee shall be final and binding.
6. Guarantor Clause (Mandatory)
Each applicant must provide at least one guarantor. Only Core Members of KKF are eligible to act as guarantors. The guarantor shall be liable for repayment in case of default by the borrower.
7. Amount & Disbursement
The assistance amount shall be decided on a case-to-case basis. Disbursement is subject to availability of funds. Payment shall be made through direct bank transfer only.
8. Repayment Terms
The assistance shall remain strictly interest-free. A repayment schedule (monthly or lump sum) will be predefined. The borrower must adhere to the agreed timeline. In case of delay or default, the guarantor will be responsible. The borrower is encouraged to contribute back to society by supporting KKF activities voluntarily after repayment, wherever possible.
9. Documentation
The following documents are mandatory: duly filled application form, valid identity proof, signed agreement (borrower and guarantor), and bank account details.
10. Record Keeping
KKF shall maintain assistance/loan register, repayment tracking records, and proper accounts for transparency and audit purposes.
11. Non-Commercial Clause
KKF shall not charge any interest and shall not engage in any commercial lending activity.
12. Right to Approve or Reject
KKF reserves the right to approve or reject any application without assigning any reason.
13. Security / Cheque Undertaking Clause
The borrower shall provide a security cheque equivalent to the sanctioned assistance amount in favor of Khidmat-e-Khalq Foundation (KKF). The cheque shall be collected only as a security measure and shall not be misused. It shall be presented/deposited only in case of default or failure to repay as per agreed terms. Upon full repayment, the cheque shall be returned immediately to the borrower. KKF shall ensure proper documentation and acknowledgment of the cheque received.