Ep 4 Islamic Micro-Finance A Path to Empowerment & Social Justice
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Channel: Mansoor Danish
File Size: 2.91MB
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AI Generated Summary ©
In this episode of the Islamic payments series, the host discusses the use of microfinance as a bridge between financial requirements and compliance with Sharia compliance. The microfinance can raise money through various models, including the Sharia (compliance) and Masaryk (compliance), but it is also a good support for low income groups and startup entrepreneurs. The microfinance is also added to a fast growing micro takaful model, where individuals can now use the model to meet financial requirements and protect from Sharia compliance.AI Generated Transcript ©
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.