Adopting zero interest financing model (ZIFM) in Islamic microfinance institutions: the case of Shariah people credit bank (BPRS), Indonesia
Microfinance has emerged as an important instrument to alleviate poverty in many countries including in developing countries. Despite being able to demonstrate successes in the activity, conventional microfinance is not without controversy. The findings from the existing studies revealed that conven...
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| Format: | Proceeding Paper |
| Language: | English English |
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2014
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| Online Access: | http://irep.iium.edu.my/39841/ http://irep.iium.edu.my/39841/1/Mohamed_Asmy_%26_Hassanudin-_International_Conference_on_Arts_and_Sciences_2014.pdf http://irep.iium.edu.my/39841/2/ConferSchedule.pdf |
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| author | Mohd Thas Thaker, Mohamed Asmy Mohd Thas Thaker, Hasanudin |
| author_facet | Mohd Thas Thaker, Mohamed Asmy Mohd Thas Thaker, Hasanudin |
| author_sort | Mohd Thas Thaker, Mohamed Asmy |
| building | IIUM Repository |
| collection | Online Access |
| description | Microfinance has emerged as an important instrument to alleviate poverty in many countries including in developing countries. Despite being able to demonstrate successes in the activity, conventional microfinance is not without controversy. The findings from the existing studies revealed that conventional microfinance is less effective, fail to reach the poorest people and
generally have a limited effect on income. In addition, conventional microfinance also has highly criticized for charging excessive interest rates and fees to the poor entrepreneur. In some Muslim countries, conventional microfinance has always been rejected, due to its noncompliance with the Islamic principles, particularly on the issue related to interest or riba. Islamic microfinance evolved and reckoned as an alternative to its counterpart. However, the outreach of Islamic microfinance is very limited where only there is very few Islamic microfinance institutions and Islamic banks involved in microfinance activity. Also, Islamic
microfinance is having an issue of convergence of activity with the conventional practices. Thus, this paper aims to propose to adopt Zero Interest Financing Model (ZIFM) for Islamic microfinance institutions. This study focuses on the case of Indonesian Islamic microfinance institution namely Shariah People Credit Bank (BPRS) by observing their experience and some emerging issues. The proposed model is expected to address an emerging issue in Islamic microfinance institutions. |
| first_indexed | 2025-11-14T15:56:09Z |
| format | Proceeding Paper |
| id | iium-39841 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-14T15:56:09Z |
| publishDate | 2014 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-398412018-06-13T07:18:21Z http://irep.iium.edu.my/39841/ Adopting zero interest financing model (ZIFM) in Islamic microfinance institutions: the case of Shariah people credit bank (BPRS), Indonesia Mohd Thas Thaker, Mohamed Asmy Mohd Thas Thaker, Hasanudin HG Finance Microfinance has emerged as an important instrument to alleviate poverty in many countries including in developing countries. Despite being able to demonstrate successes in the activity, conventional microfinance is not without controversy. The findings from the existing studies revealed that conventional microfinance is less effective, fail to reach the poorest people and generally have a limited effect on income. In addition, conventional microfinance also has highly criticized for charging excessive interest rates and fees to the poor entrepreneur. In some Muslim countries, conventional microfinance has always been rejected, due to its noncompliance with the Islamic principles, particularly on the issue related to interest or riba. Islamic microfinance evolved and reckoned as an alternative to its counterpart. However, the outreach of Islamic microfinance is very limited where only there is very few Islamic microfinance institutions and Islamic banks involved in microfinance activity. Also, Islamic microfinance is having an issue of convergence of activity with the conventional practices. Thus, this paper aims to propose to adopt Zero Interest Financing Model (ZIFM) for Islamic microfinance institutions. This study focuses on the case of Indonesian Islamic microfinance institution namely Shariah People Credit Bank (BPRS) by observing their experience and some emerging issues. The proposed model is expected to address an emerging issue in Islamic microfinance institutions. 2014-06-02 Proceeding Paper NonPeerReviewed application/pdf en http://irep.iium.edu.my/39841/1/Mohamed_Asmy_%26_Hassanudin-_International_Conference_on_Arts_and_Sciences_2014.pdf application/pdf en http://irep.iium.edu.my/39841/2/ConferSchedule.pdf Mohd Thas Thaker, Mohamed Asmy and Mohd Thas Thaker, Hasanudin (2014) Adopting zero interest financing model (ZIFM) in Islamic microfinance institutions: the case of Shariah people credit bank (BPRS), Indonesia. In: PSU-USM-NSTRU International Conference on Arts and Sciences 2014, 2nd - 3rd June 2014, Songkla, Thailand. (Unpublished) |
| spellingShingle | HG Finance Mohd Thas Thaker, Mohamed Asmy Mohd Thas Thaker, Hasanudin Adopting zero interest financing model (ZIFM) in Islamic microfinance institutions: the case of Shariah people credit bank (BPRS), Indonesia |
| title | Adopting zero interest financing model (ZIFM) in Islamic microfinance institutions: the case of Shariah people credit bank (BPRS), Indonesia |
| title_full | Adopting zero interest financing model (ZIFM) in Islamic microfinance institutions: the case of Shariah people credit bank (BPRS), Indonesia |
| title_fullStr | Adopting zero interest financing model (ZIFM) in Islamic microfinance institutions: the case of Shariah people credit bank (BPRS), Indonesia |
| title_full_unstemmed | Adopting zero interest financing model (ZIFM) in Islamic microfinance institutions: the case of Shariah people credit bank (BPRS), Indonesia |
| title_short | Adopting zero interest financing model (ZIFM) in Islamic microfinance institutions: the case of Shariah people credit bank (BPRS), Indonesia |
| title_sort | adopting zero interest financing model (zifm) in islamic microfinance institutions: the case of shariah people credit bank (bprs), indonesia |
| topic | HG Finance |
| url | http://irep.iium.edu.my/39841/ http://irep.iium.edu.my/39841/1/Mohamed_Asmy_%26_Hassanudin-_International_Conference_on_Arts_and_Sciences_2014.pdf http://irep.iium.edu.my/39841/2/ConferSchedule.pdf |