Mansoor Danish – Ep 4 Islamic Micro-Finance A Path to Empowerment & Social Justice

			Salam Alaikum Warahmatullahi Wabarakatuh Welcome back to the Islamic finance series. In today's
episode, we will continue to look into some of the innovative financial products which are offered
by the Islamic financial institutions. In today's discussion, we have the Islamic microfinance. Now
at a time where millions are striving for economic development, Islamic microfinance offers that
beacon of hope to all of these investors and individuals who want to raise money to meet the
financial requirements. Islamic microfinance can therefore be seen as a bridge between the
microfinance requirements as well as the Sharia compliance. In fact, it is the aspect of Sharia
		

			compliance, which makes it an ethical mode of raising finances. Now, one important thing to keep in
mind is that Islamic microfinance not only supports those who belong to the low income group, but it
is also a big support for those who are startup entrepreneurs. So if you have a small scale business
in your mind, which you wish to start, you intend to start and you don't know where to raise your
money from next time, you can visit an Islamic financial institutions and seek to raise finances
through the microfinance windows. The Islamic microfinance can raise money through the current
husband model or the benevolent loan model, which is there, which is totally interest free the
		

			borrower and the lenders, they come together and they give loan more as a benefit which is being
offered and then the person returns back the money that he had borrowed. There is no component of
interest involved in such kind of finances. Then you also have the Masaryk and Mudaraba model, which
is the profit sharing model where the microfinance institution can engage with entrepreneurs to help
the financing requirements. We also have a very fast growing micro takaful model. This is where the
insurance needs of investors and individuals are also being met using the microfinance model. Now
through the takaful model, any unforeseen circumstances of individuals can now be protected from a
		

			Sharia compliant perspective as well. So you can clearly see see that Islamic microfinance is not
only offering the financial requirements and support that is needed by low income groups as well as
startup entrepreneurs, but they're also adding that important Sharia compliance touch to it, which
makes it ethical for people who want to use this model of financing to meet the requirements.
There's a lot more to discuss in the financial world. We will talk about more of the products which
are offered by the Islamic banking and financial institutions. Please stay tuned. And remember to
like this video and share this video. Remember to subscribe to the channel. And if you have any
		

			particular thoughts or questions or queries or suggestions, please use the chat box to share your
thoughts with all of us. Thank you for watching this video. Salaam aleikum wa rahmatullah.