GEAR Financing Model

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GEAR has been working on two financing support models since its inception. Both are encouraging and strengthening Self-Employment activities of the Society; one is Donation Based whereas other is the management of Zakat Fund. In both models organization is focusing to promote Individual Self-Stability and Business Sustainability. This concept is unique and soul of the GEAR Ideology.

Donation Based Model

In Donations based model, beneficiaries return the original amount in 12 to 15 equal installments. Whereas, the Zakat model is hundred percent authorized as per Sharia and fund is not recovered. In both models, GEAR acts as a support system to monitor and troubleshoot (where required) so that partners can focus on their business needs and their operations run smoothly.

Here GEAR provide tools/machine/product  that drive income opportunities for business setup either new or existing, amount ranging from 20000/- to 40,000/- (in most cases) based on the principle of ‘Payable When Able’. Repayment of the loan is very well structured with affordable equal monthly installment without any additional charges. Monthly monitoring of the partners’ business is the significant part of this support model till the improvement of their lives.

Forced recovery of installments are not done as the core purpose is to help the families to be capable to stand on their own feet. Payable when able concept is directly connected with smooth/profitable running of the business set up. In case of any financial issues in any month, instalment collection is shifted with understanding of the partners.

Key Features:

Loan Amount: 20,000/- to 40,000/-
Loan Tenure: 12 to 15 Months
Repayment Mode: Equal Monthly Installment (EMI)
Purpose: Fund must be utilized for income generating activities
Special Feature: No additional/hidden charges, neither Service Charges nor Interest/Markup. It is purely Interest Free Loan (Qarz-e-Hasna)
Business Support: Pre and post disbursement technical support of businesses is the significant feature of GEAR activities

Eligibility Criteria:

CNIC: Valid Original CNIC & Visible Copy
Age Bracket: 18 to 60 Years
Business Experience: Minimum of 2 Years (relaxable)
Family Residence: Owner/Rented
Resident family must be living locally at-least for last 2 years

Zakat Based Model:

GEAR team is continuously looking for families who can establish their eligibility to receive Zakat as per sharia rules. After successful qualification for Zakat eligibility all other specification is same as GEAR Loan. The only difference, GEAR is not going to take any repayment from the beneficiary when business is funded from Zakat. The process of monthly business monitoring after disbursement is the important part of this support model too to identify and resolve any hurdle in managing business.

Key Features:

Fund Amount: 20,000/- to 40,000/-
Purpose: Fund must be utilized for income generating activities.
Special Feature: There is no repayment of this support model but the core purpose of this model is to become helping hand for self-stability. Pre and post disbursement technical support of businesses is the significant feature of GEAR activities and this model as well.

Eligibility Criteria:

CNIC: Valid Original CNIC & Visible Copy
Age Bracket: 18 to 60 Years
Business Experience: Minimum of 2 Years
Residence Place: Owner/Rented
Resident family must be living locally at-least from last 2 years