Islamic Microfinance System as an Alternative to Poverty Alleviation

Authors

  • Asghar Kamal Doctoral Candidate University of Management and Technology, Lahore

Keywords:

Musharka, Mudarbah, Ijarah, Qardhul Hasan

Abstract

This paper will discuss the concept of poverty and Micro finance. And it will also discuss the conventional micro finance and its alternative Islamic Micro Finance. As in today’s world Islamic Banking and Islamic products are growing globally and are appreciated. In this paper we will explain the model of Islamic Micro Finance and different products that are related to Islamic Micro Finance, which are Musharka, Mudarbah, Ijarah, Qardhul Hasan. These products provide financing to the entrepreneur as best alternative to the conventional loans. These financing are providing against Riba Free loans, which is prohibited in Islam. These schemes, however, require specialized skills in managing risks inherent in the structure of the contracts. In theory, different schemes can be used for different purposes depending on the risk profile of the micro entrepreneurs.

References

Onakoya, Adegbemi Babatunde, and Adefisayo Olasunkanmi Onakoya. "Islamic microfinance as a poverty alleviation tool: Expectations from Ogun State, Nigeria." Scholarly Journal of Business Administration 3, no. 2 (2013): 36-43.

Obaidullah, Mohammed. "Introduction to Islamic microfinance." Mohammed Obaidullah, Introduction to Islamic Microfinance, IBF Net Limited (2008).

Onakoya, Adegbemi Babatunde, and Adefisayo Olasunkanmi Onakoya. "Islamic microfinance as a poverty alleviation tool: Expectations from Ogun State, Nigeria." Scholarly Journal of Business Administration 3, no. 2 (2013): 36-43.

Mohamoud-Yonis, Abdiqadir. "Islamic microfinance system and poverty alleviation in Somaliland." (2012).

Ismail, Abdul Ghafar, and Bayu Taufiq Possumah. "Theoretical model for zakat-based Islamic microfinance institutions in reducing poverty." International Research Journal of Finance and Economics 103 (2013): 136-150.

Bhuiyan, Abul Bashar, Chamhuri Siwar, Aminul Islam, and Mamunur Rashid. "The approaches of Islamic and conventional microfinancing for poverty alleviation and sustainable livelihood." American Journal of Applied Sciences 9, no. 9 (2012): 1385.

Bhuiyan, Abul Bashar, Chamhuri Siwar, Aminul Islam, and Mamunur Rashid. "The approaches of Islamic and conventional microfinancing for poverty alleviation and sustainable livelihood." American Journal of Applied Sciences 9, no. 9 (2012): 1385.

Obaidullah, Mohammed. "Introduction to Islamic microfinance." Mohammed Obaidullah, Introduction to Islamic Microfinance, IBF Net Limited (2008).

Obaidullah, Mohammed. "Introduction to Islamic microfinance." Mohammed Obaidullah, Introduction to Islamic Microfinance, IBF Net Limited (2008).

Mirghani, Murtada, M. Mohammed, Abul Bashar Bhuiyan, and Chamhuri Siwar. "Islamic microcredit and poverty alleviation in the Muslim world: prospects and challenges." Australian Journal of Basic and Applied Sciences 5, no. 9 (2011): 620-626.

Obaidullah, Mohammed. "Introduction to Islamic microfinance." Mohammed Obaidullah, Introduction to Islamic Microfinance, IBF Net Limited (2008).

Hassan, M. Kabir, and A. Ashraf. "An integrated poverty alleviation model combining zakat, awqaf and micro-finance." In Seventh International Conference–The Tawhidic Epistemology: Zakat and Waqf Economy, Bangi, Malaysia, pp. 261-281. 2010.

Mohamoud-Yonis, Abdiqadir. "Islamic microfinance system and poverty alleviation in Somaliland." (2012).

Onakoya, Adegbemi Babatunde, and Adefisayo Olasunkanmi Onakoya. "Islamic microfinance as a poverty alleviation tool: Expectations from Ogun State, Nigeria." Scholarly Journal of Business Administration 3, no. 2 (2013): 36-43.

Onakoya, Adegbemi Babatunde, and Adefisayo Olasunkanmi Onakoya. "Islamic microfinance as a poverty alleviation tool: Expectations from Ogun State, Nigeria." Scholarly Journal of Business Administration 3, no. 2 (2013): 36-43.

Dhumale, R., and A. Sapcanin. "An application of Islamic banking principles to microfinance. Technical Note, A Study by the Regional Bureau for Arab States, UNDP." Cooperation with the Middle East and North Africa Region. Washingtonm, DC: World Bank (1999).

Mirghani, Murtada, M. Mohammed, Abul Bashar Bhuiyan, and Chamhuri Siwar. "Islamic microcredit and poverty alleviation in the Muslim world: prospects and challenges." Australian Journal of Bsic and Applied Sciences 5, no. 9 (2011): 620-626.

Downloads

Published

2021-12-31