'Cash waqf' and Islamic microfinance: untapped economic opportunities

The success of microfinance programmes in alleviating poverty in many countries has spurred the development of faith-based microfinance institutions. Muslims have combined certain elements in Islamic finance and microfinance to create a new programme called ‘Islamic microfinance’ and use it as a too...

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Main Authors:	Md Saad, Norma, Anuar, Azizah
Format:	Article
Language:	English
Published:	International Institute of Advanced Islamic Studies Malaysia (IAIS) 2009
Subjects:	HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/19990/ http://irep.iium.edu.my/19990/ http://irep.iium.edu.my/19990/1/Cash_Waqf_-_ZHMN.pdf

id	iium-19990
recordtype	eprints
spelling	iium-199902012-04-25T03:11:08Z http://irep.iium.edu.my/19990/ 'Cash waqf' and Islamic microfinance: untapped economic opportunities Md Saad, Norma Anuar, Azizah HG4001 Financial management. Business finance. Corporation finance. The success of microfinance programmes in alleviating poverty in many countries has spurred the development of faith-based microfinance institutions. Muslims have combined certain elements in Islamic finance and microfinance to create a new programme called ‘Islamic microfinance’ and use it as a tool to fight poverty in their community. Even though microfinance is proven successful in fighting poverty, current microfinance practised by commercial banks in Malaysia has several shortcomings. Current weaknesses include stringent credit evaluation and missing the real target group, i.e., the poor and the needy. Furthermore, the mode of financing is mostly personal loan using bay‘ al-‘īnah, whereby the use of the loan is to fulfil personal consumption instead of income-generating activities. Given these shortcomings, the article explores the possibility of using ‘cash waqf’ as a new source of funding for Islamic microfinance and proposes a new concept and application of Islamic microfinance so that it is truly in line with the Islamic spirit of microfinance. It is hoped that with this new concept and application of Islamic microfinance, the use of microfinance genuinely caters for the needs of the poor as well as generating socio-economic growth of the Muslim ummah. International Institute of Advanced Islamic Studies Malaysia (IAIS) 2009 Article PeerReviewed application/pdf en http://irep.iium.edu.my/19990/1/Cash_Waqf_-_ZHMN.pdf Md Saad, Norma and Anuar, Azizah (2009) 'Cash waqf' and Islamic microfinance: untapped economic opportunities. Islam and Civilisational Renewal (ICR), 1 (2). pp. 337-354. ISSN 2041-8728 (O), 2041-871X (P) http://icr.plutojournals.org/ICRJournals/Articles/Volume1/Issue2/CashWaqf%C3%95andIslamicMicrofinance.aspx
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	HG4001 Financial management. Business finance. Corporation finance. Md Saad, Norma Anuar, Azizah 'Cash waqf' and Islamic microfinance: untapped economic opportunities
description	The success of microfinance programmes in alleviating poverty in many countries has spurred the development of faith-based microfinance institutions. Muslims have combined certain elements in Islamic finance and microfinance to create a new programme called ‘Islamic microfinance’ and use it as a tool to fight poverty in their community. Even though microfinance is proven successful in fighting poverty, current microfinance practised by commercial banks in Malaysia has several shortcomings. Current weaknesses include stringent credit evaluation and missing the real target group, i.e., the poor and the needy. Furthermore, the mode of financing is mostly personal loan using bay‘ al-‘īnah, whereby the use of the loan is to fulfil personal consumption instead of income-generating activities. Given these shortcomings, the article explores the possibility of using ‘cash waqf’ as a new source of funding for Islamic microfinance and proposes a new concept and application of Islamic microfinance so that it is truly in line with the Islamic spirit of microfinance. It is hoped that with this new concept and application of Islamic microfinance, the use of microfinance genuinely caters for the needs of the poor as well as generating socio-economic growth of the Muslim ummah.
format	Article
author	Md Saad, Norma Anuar, Azizah
author_facet	Md Saad, Norma Anuar, Azizah
author_sort	Md Saad, Norma
title	'Cash waqf' and Islamic microfinance: untapped economic opportunities
title_short	'Cash waqf' and Islamic microfinance: untapped economic opportunities
title_full	'Cash waqf' and Islamic microfinance: untapped economic opportunities
title_fullStr	'Cash waqf' and Islamic microfinance: untapped economic opportunities
title_full_unstemmed	'Cash waqf' and Islamic microfinance: untapped economic opportunities
title_sort	'cash waqf' and islamic microfinance: untapped economic opportunities
publisher	International Institute of Advanced Islamic Studies Malaysia (IAIS)
publishDate	2009
url	http://irep.iium.edu.my/19990/ http://irep.iium.edu.my/19990/ http://irep.iium.edu.my/19990/1/Cash_Waqf_-_ZHMN.pdf
first_indexed	2023-09-18T20:29:58Z
last_indexed	2023-09-18T20:29:58Z
_version_	1777408669950935040

'Cash waqf' and Islamic microfinance: untapped economic opportunities

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