Publication: The Role Of Islamic Microfinance In Uplifting B20 Communities In Malaysia In The Covid-19 Pandemic
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Date
2021-12
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
USIM Press
Abstract
The purpose of this study is to review the Islamic microfinance model that best suited the bottom of the wealth pyramid (B20) communities in Malaysia. Islamic microfinance products and services that are friendly to the B20 communities are crucial to ensure they are not lacking behind from the current development where everybody has access to the financial services. Most current Islamic microfinance products use debt-based financing that similar to the banking products. These products are not suitable to the B20 communities because it creates debt and burdens them to pay back the financing. Therefore, this paper reviews the potential of equity-based financing models that suit to the B20 communities. The study reviews past literature obtained from scholarly databases including Web of Sciences, Scopus, and Google Scholar. In addition, data from microfinance providers are also collected through their website, news published, and bulletin. The findings reveal that equity-based financing via musharakah mutanaqisah seeing as the innovative Islamic microfinance model that suit to the B20 communities compares to debt-based financing.
Description
Vol. 33 No. S4 (2021): ULUM ISLAMIYYAH The Malaysian Journal of Islamic Sciences
Keywords
Islamic Microfinance, Malaysia, B20 Community
Citation
Nawai, N. . (2021). The Role of Islamic Microfinance in Uplifting B20 Communities in Malaysia in The Covid-19 Pandemic. Ulum Islamiyyah, 33(S4), 189-201. https://doi.org/10.33102/uij.vol33noS4.423