Islamic Microfinance and Rehabilitation Model for the Slum and Floating Population by Waqf Funds, the Case of Bangladesh: A Proposal for Muslim Countries

Abstract

This paper designs a conceptual model of Islamic microfinance and rehabilitation by using the waqf funds for the slum and floating population. It analyzes both the primary and the secondary data on the current status of Islamic microfinance coverage (in thirteen countries), waqf estates (in seven countries), and the slum and floating population in thirty five Muslim countries of the world. The primary data was accumulated on 150 microfinance borrowers and 100 non-borrowers of Bangladesh. This paper presents a multifunctional structure of an autonomous waqf management institution to execute the model of this paper. This institution will be formed by the joint venture of the government, the national, as well as international Islamic agencies. Furthermore, this model will be implemented through five stages, the revival and registration of the waqf estate, accumulation of funds, initiating the Islamic microfinance and rehabilitation for the slum population, and finally, forward linkage that may help the slum people to contribute to the society.

Do Technology Changes Affect The Productivity of The Indonesian Islamic Rural Bank (BPRS)?

“…Unlike others, a cooperative with limited government engagement and backing, the BPRS is a bank regulated by the Indonesian Central Bank (Bank Indonesia). When comparing the borrower's status before and after funding, the BPRS type of institutions is related to an improvement in the borrowers' economic variables, although the BPRS had a more substantial influence on micro-enterprises than other microfinance institutions, possibly because of their larger size and the central bank of Indonesia's backing and oversight (Hossain, 2019;Sulaiman & Zakari, 2015).…”

Proposing Waqf New Form (WNF) In Waqf Land Registration System In Malaysia

“…Some scholars have focused on financial issues and funds generation (Khan et al, 2020;Sukmana, 2020;Zauro et al, 2020), and others on the demographic groups experiencing economic problems that can be targeted for donations by cash waqf institutions for their marketing campaigns (Hariyanto et al, 2020;Razak, 2020). Artha et al, (2020), Hossain (2019) and Tajudin et al (2020) designed a conceptual model of Islamic microfinance and rehabilitation by using waqf funds for the slum and floating population. Zain and Sori (2020) designed a potential sustainable and responsible investment (SRI) Sukuk model and sought the opinion of subject-matter experts and industry practitioners on the model, its attractiveness to investors, and its feasibility of its implementation in Malaysia.…”

Literature Survey on Islamic Microfinance

“…Financial services provided by microfinance are those services such as microcredit, micro-savings, and micro-insurance products. Whereas, the non-financial services of microfinance are by providing healthcare services, skills and training programs, marketing and management activities, education, self-confidence development, and enterprise development (Hossain, 2019). Islamic microfinance instruments can be divided into two categories which are profit-based and charity-based.…”

“…However, one of the challenges is to maintain the sustainability of these microfinance institutions. According to Hossain (2019), currently, there is a growing number of implementing zakat and sadaqah for the purpose of reducing poverty. These practices can be implemented through multi-dimensional projects and programs provided by the Islamic microfinance.…”