Islamic microfinance differs from conventional microfinance in that it must adhere to the same principles as Islamic finance, which is structured to provide products for Muslim customers that are in compliance with the code of ethics and conduct laid out under sharia law. The purpose of this paper is to focus on Shariah-based microfinance products in the context of sustainable poverty alleviation approach and provide them financial benefits to enhance their livelihoods.,Here, this qualitative study critically analyzes the basics of the sustainable Islamic microfinance to exterminate the level of poverty.,Islamic microfinance is a more ethical practice than … Abstract. The objective of this paper is to propose a shariah compliant microfinance product in Islamic banking operations particularly in Malaysia. Islamic microfinance has unique features such as interest free loans and client-based initiatives that make it the most appropriate microfinance system for poverty alleviation 2. NRSP Microfinance Bank Limited, Near Baghdad Railway Station, University Road, Bahawalpur 63100, Pakistan. Prev Islamic Microfinance is different from the conventional one with respect to its interest free mod of financing. Abdullateef to Speak on The Role of Islamic Microfinance on Poverty Eradication in Nigeria . Saeeda Ahmed To Speak on SDGs, Women Empowerment and Islamic Economy . +92-62-2285126 +92-62-2280051. al 2008). Islamic Microfinance, which is yet to gain a strong foothold in Kenya, is part of the larger Islamic Finance industry which offers services in banking, insurance (Takaful), and bonds (sukuks). 8. Nevertheless, demand for Islamic microfinance products is strong. GLOBAL: Lebanon’s Bank Audi signs agreement with First Abu Dhabi Bank for latter’s … These products will be in addition to regular “Murabaha”. Islamic Microfinance Products General Characteristics of Microfinance Products: Normally MF products are not backed by physical collateral they usually mitigate risk by use of social collateral & PGs. Noting the generally higher operational costs and lower pricing of Islamic financial products, relative to conventional microfinance, we hypothesize that … The study is purely quantitative, and it uses cross-sectional design data which was gathered through a questionnaire from a sample of 381 beneficiaries of an Islamic microfinance institution (PROCAPEC). disbursed by different organizations in … On the contrary, the need for Shariah compliance has led to considerable research into product development. To date, there are quite a few papers on Islamic microfinance that are published in reputable journals, which fairly represent the size of Islamic microfinance industry compared to the overall microfinance sector. IRAN: Iranian insurers to launch human resources-related products as part of drive for new instruments. QATAR: Alkhaleej Takaful Insurance opens board membership nominations. Of the banks that offer Shariah-compliant products and services, Exim, Islami, Social Islami and Shahjalal Islami also have Islamic microfinance programmes. Islamic Microfinance Products and Models Kabir Tahir Hamid, PhD., FCIFC, FIDRP, FCITM International Institute of Islamic Banking and Finance (IIIBF) Bayero Ard, Islam, Islamic banking, Mal, Mudarib, Murabaha , Murabahah, Musaqah, Musharakah, Salam , Sarf, Shariah , Shariah compliant, Takaful , Waqf, Zakat, Istijrar, Mark-Up The relatively high costs of providing Sharia-compliant products may explain why the development of Islamic microfinance has lagged; Islamic microfinance products still serve less than 1 percent of borrowers (El-Zoghbi & Tarazi, 2013). View 6675597.ppt from FINANCE TAX at Riphah International University Islamabad Main Campus. 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