A Shariah Perspective Review on Islamic Microfinance

Asian Social Science, Vol. 11, issue 9, pp. 273-280, 2015

8 Pages Posted: 28 Apr 2015

See all articles by Shaheen Mansori

Shaheen Mansori

Malaysia University of Science and Technology

Sze Kim Chin

INTI International University College (INTI-UC)

Meysam Safari

SEGi University

Date Written: April 28, 2015

Abstract

Islamic micro-finance is a growing industry in several Muslim countries such as Bangladesh, Nigeria, and Malaysia. Islamic micro-finance is at the heart of Islamic finance as it addresses one of the fundamental roles of financial intermediaries demanded by Shariah. Over the past few decades, many initiatives have taken place to alleviate poverty in Muslim countries. This paper provides the Islamic thoughts and motives behind these initiatives and then, it discusses the mechanisms proposed by Islam to improve the life of poor, prevent them to become poor, and also to improve the general economic relations among members of society. Later on, mudarabah, Musharakah, murabahah, Ijarah, and qard al-hasan are discussed as different types of Shariah compliant contracts that can be used as the base of micro financing business model.

Keywords: Islamic microfinance, micro-finance, Islamic finance, mudarabah, Musharakah, murabahah, Ijarah, qard al-hasan

Suggested Citation

Mansori, Shaheen and Chin, Sze Kim and Safari, Meysam, A Shariah Perspective Review on Islamic Microfinance (April 28, 2015). Asian Social Science, Vol. 11, issue 9, pp. 273-280, 2015. Available at SSRN: https://ssrn.com/abstract=2599952

Shaheen Mansori

Malaysia University of Science and Technology ( email )

Selangor 55100
Malaysia

Sze Kim Chin

INTI International University College (INTI-UC) ( email )

Persiaran Perdana BBN
Putra Nilai, Negeri Sembilan 71800
Malaysia

Meysam Safari (Contact Author)

SEGi University ( email )

Taman Sains Selangor,
Kota Damansara, PJU 5,
Petaling Jaya,, Selangor 47810
Malaysia

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