Islamic Microfinance – An idea whose time has come in India?

MicrofinanceFocus: As a plethora of financial inclusion models emerge across India, vast segments of the Muslim community still remain under-banked. In recent years, a handful of leading financial players have developed Shariah-compliant funds for the Indian market. However, full-fledged Islamic banks are yet to make inroads into the microfinance sector. Many Muslims hail from low income groups across India and typically lack access to bank credit, as documented in the Sachar committee report (2006). In such a scenario, can Islamic microfinance be the tipping point for bringing an end to the financial exclusion of the Muslim community?...continue