Interest Free Financing and Its Relevance to Indian Economy in Post COVID Virus Pandemic

15 Pages Posted: 3 Aug 2020

See all articles by Seema Bushra

Seema Bushra

Independent

D. N. Rao

SRMS College of Engineering and Technology; SRMS Institutions, Bareilly

Krity Gulati

Lloyd Business School

Date Written: July 18, 2020

Abstract

The paper briefly discusses the impact of COVID-19 impact on world economy and suggests an Interest Free Financing System (IFF) that can provide impetus to the crawling economic conditions in the post covid pandemic period. The basics of IFF, its rules & regulations are presented and further it explores the possibility of introducing equity based finance in a country like India in post pandemic economic conditions. The paper also highlights the emerging trends of IFF investments especially with regard to its applicability in the globalised economy.

A new awakening is taking place in this aspect as the demand for such financing has started to pour in from different corners of the globe. The paper discusses the possibility of profit and loss sharing based Interest Free Financing in a country like India. India being an emerging hub for global business and investments is considered as the potential market to attract equity based finance which are currently needed for India’s infrastructural development. Moreover, India has the second largest Muslim population in the world, a large number of which plays a vital role in the establishment and working of Micro, Small and Medium Enterprises. A number of studies in recent years have focused on the viability of Interest Free Financing and investments that cater to their needs in synchronization with their religious beliefs.

Keywords: Interest-free finance, Risk-return, Islamic finance, Interest-free banking

Suggested Citation

Bushra, Seema and Rao, Dabbeeru Neelakanteswar and Gulati, Krity, Interest Free Financing and Its Relevance to Indian Economy in Post COVID Virus Pandemic (July 18, 2020). Available at SSRN: https://ssrn.com/abstract=3655130 or http://dx.doi.org/10.2139/ssrn.3655130

Seema Bushra

Independent ( email )

Dabbeeru Neelakanteswar Rao (Contact Author)

SRMS College of Engineering and Technology ( email )

Bareilly
India
9971510666 (Phone)

SRMS Institutions, Bareilly ( email )

NH-58, Delhi-Roorkee Bypass
Rm urti Puram, Bareilly- Nainital Road, Bareilly,
Bareilly, UP, Uttar Pradesh 243202
India
+919971510666 (Phone)

Krity Gulati

Lloyd Business School ( email )

Uttar Pradesh
India
+919990760551 (Phone)

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