Prospects of a partnership-based Islamic microfinance model in Bangladesh: clients perspectives

• Main Authors: Muhammad, Niaz Makhdum, Kassim, Salina, Mahadi, Nur Farhah, Engku Ali, Engku Rabiah Adawiah
• Other Authors: Mansour, N.
• Format: Book Chapter
• Language: English
• Published: Springer Nature 2024
• Subjects: HG Finance; HG3368 Islamic Banking and Finance
• Online Access: http://irep.iium.edu.my/116884/1/2024%20IFNTLR%20Niaz%20IMF%20Model.pdf; http://irep.iium.edu.my/116884/

Islamic microfinance is a powerful Shariah-compliant tool for helping the impoverished escape the cycle of poverty in Bangladesh. Despite a few applications of Islamic microfinance instruments, most of the instruments have been based on Murabahah contracts, while the use of equity or partnership-based contracts has been very minimal. This study aims to analyse the opinions and perspectives of microfinance recipients of Bangladesh regarding the prospects of implementing a partnership-based Islamic microfinance model in Bangladesh where the concepts of Mudarabah and Musharakah will be applied. A mixed-method research method has been adopted in this study. A total of 400 recipients of Islamic microfinance products were surveyed using a close-ended questionnaire to determine their viewpoints about Mudarabah and Musharakah-based Islamic microfinance model.