Microfinance through Islamic banks and zakah (A novel practice)
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The failure of the current microfinance programmes in financing with zero interest and eradicating poverty encouraged the authors to look at a recent practice which can achieve such goals. Hence, the main objective of this paper is to present one of the Islamic approaches of microfinance which is currently practised in Sudan and which succeeded in financing with zero-interest through Islamic banks and zakah. This research used qualitative method in gaining some insight into the problem and to find the alternative solution. To achieve this, secondary data was used by referring to annual reports, World Bank reports from relevant web sites, the central bank’s policies, published books, articles and journals. The results present the practical Islamic approach of micro-financing through Islamic banks and zakah, thus nullifying the misconception that banks are institutions which are not set up to provide financial services to the poor and needy.
Islamic banks , Microfinance , Zakah , Zero-interest
A. Mohsin, M. I., & Alhabshi, S. O. (2015). Microfinance through Islamic banks and zakah (A novel practice). Journal of Wealth Management and Financial Planning, 2, 49-61.
Malaysian Financial Planning Council Publication (MFPC)