Islamic Micro Finance: A Tool for Social Empo...

Islamic Micro Finance: A Tool for Social Empowerment

Author Name : Mohamed Shaheer T, Dr. K Sevugan

ABSTRACT

The Islamic finance is based on the justness and morality, are the communally accepted principles of righteousness and fairness in investment. Islamic finance tries to replaces the greed with the accountability to God. The Quran (2:30) states that Man is created as the representative of God on the Earth. This Quranic guidance enables man to conserve and use prudently all the resources on the Earth. The Islamic microfinance is an innovative tool for social justice and empowerment in rural people through economic affairs and transactions. The conventional microfinance institutions and its mechanisms has been working for several years to eliminate poverty of the common man, especially in least developed and developing countries are yet to appreciably eradicate it from the society. Islamic micro finance ensure the social and financial inclusion of the poor through Shariah based financial tools featured with interest free transactions, restricted and ethical investments and non aggressive risk taking. Tools like Zaakh, Sadaqah can be given to village people for satisfying their basic financial needs. The intention of this paper is to spotlight the Shariah-b3iSe& microfinance tools in the perspective of sustainable social empowerment through financial assistance to enhance the livelihoods of the poor.

Key words: Islamic Micro Finance, Islamic ethics, Shariah, Social Empowerment.