Islamic microfinance

Small-scale entrepreneurs in many developing countries do not have access to simple banking facilities. For such individuals a small interest-free loan can help them establish or grow their business and help them achieve a stable livelihood.

Investing and improving their business allows individuals to increase income, making it easier to afford better housing and more nutritious food, pay for medical bills and education, while still repaying the loan.

These loans allow us to give families a hand up and not a hand-out, which truly breaks the cycle of poverty.

Utilising the Islamic principles of interest-free credit (qard hassan), credit sales (murabaha) and investments (mudaraba), microfinance provides people with the power to create opportunities for themselves and others.

With no access to banking facilities, millions of people are not able to safely put away money for a rainy day or for future investment.

Islamic Relief supports communities with a system for saving at the community level through the development of self-help groups or saving associations. People who participate in a savings scheme are better prepared to cope with any unforeseen expenses, which usually harm lower income individuals the most.