Performance of Islamic Microcredit in Perspective of Maqasid Al-Shariah: Case Study on Amanah Ikhtiar Malaysia

Alam, M.M., Said, J., and Hassan, S. 2015. Performance of Islamic Microcredit in Terms of Maqasid Al-Shariah: Case Study on Amanah Ikhtiar Malaysia. Humanomics. Vol. 31(4), pp.374–384

12 Pages Posted: 1 Apr 2017

See all articles by Md. Mahmudul Alam

Md. Mahmudul Alam

Universiti Utara Malaysia

Jamaliah Said

Universiti Teknologi MARA (UiTM)

Salwana Hassan

Universiti Teknologi MARA (UiTM)

Date Written: 2015

Abstract

Many studies have evaluated the role of microcredit programs using the conventional assessment approach. However, the conventional system of socioeconomic role assessment cannot evaluate the performance of Islamic microcredit in terms of achieving the objectives of Shariah for the Islamic microcredit model. Therefore, this study examines the role of Islamic microcredit based on the achievement of Maqasid Al-Shariah. It uses primary data that were collected through a questionnaire survey distributed among 393 microcredit borrowers from Amanah Ikhtiar Malaysia (AIM). The survey was conducted from July 2013 to December 2013 in the State of Sabah and in Peninsular Malaysia. This research also analyzes the socioeconomic roles and the achievement of microcredit and microenterprise from the perspective of the five principles of Al-daruriyyat from Maqasid Al-Shariah. Results indicate that the microcredit program of AIM has a positive and enhancing effect on the livelihood of clients. This effect is reflected in the assessment of their well-being, especially in the context of Maqasid Al-Shariah.

Keywords: Amanah Ikhtiar Malaysia, Islamic microcredit, microenterprise, Maqasid Al- Shariah, Al-daruriyyat

Suggested Citation

Alam, Md. Mahmudul and Said, Jamaliah and Hassan, Salwana, Performance of Islamic Microcredit in Perspective of Maqasid Al-Shariah: Case Study on Amanah Ikhtiar Malaysia (2015). Alam, M.M., Said, J., and Hassan, S. 2015. Performance of Islamic Microcredit in Terms of Maqasid Al-Shariah: Case Study on Amanah Ikhtiar Malaysia. Humanomics. Vol. 31(4), pp.374–384. Available at SSRN: https://ssrn.com/abstract=2942724

Md. Mahmudul Alam (Contact Author)

Universiti Utara Malaysia ( email )

Sintok, Kedah
Malaysia

Jamaliah Said

Universiti Teknologi MARA (UiTM) ( email )

Salwana Hassan

Universiti Teknologi MARA (UiTM) ( email )

40450 Shah Alam
Johor
Dungun, Selangor 23000
Malaysia

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