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Affordability of Islamic microfinance

Mohammad, Mohammad Tahir Sabit and Juanil, David Martin @ Daud and Eni, Sabariah (2018) Affordability of Islamic microfinance. Journal of Technology Management and Business, 5 (3). pp. 43-53. ISSN 2289-7224 E-ISSN 2600-7967

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Abstract

The affordability of the microfinance, Islamic and conventional, is questionable. The review of empirical studies thus far shows that the majority of them are expensive and only some of them are cheap and successful. Only those, which have less cost, can afford to make microfinance cheap and hence not only affordable but also have the prospect of assisting the poor, effectively releasing them from their cycle of poverty. To make an Islamic microfinance programme cheaper, alternatives are found in the literature, and the manner in which the costs of Islamic microfinance schemes through offer of sustained grants and subsidy for the cost of capital and operational costs is proposed. Zakat and sadaqah funds are proposed for grants and subsidy while awqaf funds are proposed for loans and investment in microenterprises.

Item Type: Article (Journal)
Additional Information: 8500/69217
Uncontrolled Keywords: Islamic microfinance, zakat, waqf, cost, affordability
Subjects: H Social Sciences > HB Economic Theory > HB126.4 Islamic Economics
H Social Sciences > HG Finance > HG3691 Credit
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Ahmad Ibrahim Kulliyyah of Laws
Ahmad Ibrahim Kulliyyah of Laws > Department of Civil Law
Depositing User: Dr Mohammad Tahir Sabit Haji Mohammad
Date Deposited: 15 Jan 2019 12:03
Last Modified: 10 Jul 2019 11:04
URI: http://irep.iium.edu.my/id/eprint/69217

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