Islamic microfinance is one of the instruments that has been scientifically demonstrated to help the poor and needy. The instrument aims to help the underprivileged by giving them access to financing based on Shariah principles for lucrative activities, primarily small and micro-businesses. Notwithstanding that the Islamic microfinance providers claim that they comply with the Islamic rulings (hukm), little attention has been paid to the extent to which the practice addresses the maqasid (objectives) shariah. Such claim of Shariah-compliant practice will be rendered meaningless if maqasid shariah are not realised. Hence, the present paper aims to explore the significance and prospects of the Islamic microfinance practice from the standpoint of maqasid shariah. The library research, inductive, deductive and analytical techniques are employed consistently. The findings reveal that Islamic microfinance has a significant roles in realising the major maqasid shariah, namely: safeguarding the religion, human life, intellect wealth and progeny. These prospects convey the perception that much effort needs to be done to encourage the offering of Islamic microfinancial products at the Islamic finance sectors at large. Future studies may propose maqasid shariah guidelines for the better practice of Islamic microfinance.

Micro takaful protection is vital to the low-income population, providing them with affordable financial and health protection. However, the uptake of micro takaful schemes is still scarce due to the reduction of its operational and promotional costs. This systematic review study aims to collect, analyse and discuss academic literature from relevant journal articles related to the issues and challenges of micro takaful financing through zakat and waqf funds using the PRISMA method. A search using Scopus, MyJurnal and Google Scholar academic databases for this study resulted in a total of 47 documents. After going through the screening processes outlined by PRISMA, 11 journal articles were accepted as the literature of this study. The issues and challenges of micro takaful financing through zakat and waqf funds in Malaysia are related to the ownership (al- tamlīk) of zakat funds, limitations of legal provisions, high operating cost and common understanding from the community. Therefore, this review suggests publishing more journal articles on the related study field to develop a practical and sustainable micro takaful financing framework through zakat and waqf funds.