Muslim-majority countries do not use formal financial services (Honohon 2007).1 Even when financial services are available, some people view conventional products as incompatible with the financial principles set forth in Islamic law. In recent years, some microfinance institutions (MFIs) have stepped in to service low-income Muslim clients who demand products consistent with Islamic financial ...

This paper not only addresses how linkages, direct and facilitating linkages, can benefit microfinance institutions – and particularly in jurisdictions where the Savings Group Outreach involvement is particularly low, but also illustrates ways and means whereby group lending and other more recent innovative methods used by micro lenders to secure repayments, could increase the desired effects, ...

Microfinance has been developed as alternative solution for global poverty alleviation effort in the last 30 years. Microfinance institution (MFI) has unique characteristic wherein they face double bottom line objectives of outreach to the poor and financial sustainability. This study proposes a two-stage analysis to measure Islamic Microfinance institutions (IMFIs) performance by comparing the...

Informal sector lenders remain a strong presence in rural India in terms of providing credit facilities in rural India. Farmers and rural poor borrowings from Money lenders and other informal sources of rural credit still significant this sources some extent i.e. 77 percent to 32 percent. In this situation micro finance has emerged as an alternative source of rural credit, microfinance programm...

This paper studies TRAIL, a variation on traditional microfinance, where a microfinance institution appoints local intermediaries (traders or informal moneylenders) as agents to recommend borrowers for individual liability loans. Agents earn commissions that depend on loan repayments. There are no peer monitoring, group meetings or savings requirements. The loans are designed to finance agricul...

The main purpose of this paper is to examine the relevance of Islamic microfinance in the light of ongoing erosion of confidence in the viability of current financial system, full of speculatory finance in the prevailing global financial market. For example, the sub-prime crisis of 2007-2008 in the US with its effects all over the world was mainly due to the inadequate market discipline which i...

Microfinance programmes provide poor people with small loans given to jointly liable self-selected groups. Follow-up loans provide incentives to repay. In an experiment we investigate the influence of those features on strategic default. Each group member invests in an individual risky project, whose outcome is known only to the individual investor. Subjects decide, whether to contribute to gro...

Microfinance in China has entered the phase of rapid development and it has become one of the most important businesses in commercial banks. According to the principals of low carbon economy and the characteristics of farmer microfinance of Chinese commercial bank, this paper designed the performance evaluation system and evaluated the performance of small and micro businesses microfinance. In ...

The present study has been conducted to investigate the impact of Cooperative Microfinance Program (CMFP i-e Islamic Relief-Pakistan] on the standard of life of poor marginalized masses. Secondary, time series, ranging from 2002-2008 about the Disbursement of funds, number of beneficiaries [gender wise], financing methods have been taken from the reports of Islamic Relief. Numbers of beneficiar...

a r t i c l e i n f o Microfinance is a vital source of funding for micro-entrepreneurs in emerging markets and underdeveloped nations. The emphasis in the literature on social sanctions as a mechanism for ensuring high repayment rates may be misplaced. We propose that the construct of harmonious social relations needs to be added in order to explain repayment rates and that high repayment rate...