Looking For: Islamic MFIs

[ashes999]

As-salaamu 'alikum wa rahmatullah,

Instead of my usual rants, I'll try to keep this short. I'm looking for organizations you may know about that offer Islamic microfinance loans.

Islamic means: no riba. If they lend $1000, they are repaid $1000.
Microfinance means, to poor people who need a way to generate income.

For example, they may find someone in southeast asia who needs $1000 for chickens to generate income by eggs. So they will lend the $1000 interest-free, or buy the chickens and sell them for $1100, or lease the chickens, or something else.

If you know any orgs doing this, please please super-please tell me! I already found:

- Helping Hands: http://www.hhrd.org/hhrd_ifmf.aspx
- Islamic Relief: http://www.irusa.org/blog/better-opport ... s-farmers/
- ICNA Relief: http://www.icnareliefcanada.ca/internat ... /index.asp

I'm hoping that soup kitchens, womens shelters, and other related services might be doing this already on a small-scale. That's good enough for me.

Lemme know bros. Any country is fine, locally or abroad.

--Ashiq

[thulfiqaar]

I didn't even know such organisations exist. That's pretty cool, but what do those organisations get out of it? banks have interest so they profit but these guys are just losing money and getting it back later that is all.

If it's something similar to a charity organisation then wow I am amazed at the generosity.

[ashes999]

thulfiqaar some of it is just charity ($1000 loan for $1000). To be sustainable, microfinance depends on profitability; interest (riba) is the obvious approach, except for Muslims.

For us, like I enumerated above, other approaches can be taken. If someone needs $1000 to buy 60 chickens for an egg farm, I can:
- Lend him $1000 (no profit)
- Buy the chickens and sell them to him for $1100 (make $100 profit)
- Buy the chickens and lease them to him for $50/month over 22 months for $1100 ($100 profit)
- Insert creative ideas here

Wallahu a'lam.

[thulfiqaar]

aaah mashallah that makes a lot of sense, That's pretty cool.

[saqib7]

SubhanAllah I didn't know these existed now this is much better to donate to this way then any other

[SnakeXT]

Thats pretty good. I hate interest, which is why my credit score is top notch. I never borrowed from anyone nor will I. I'd be paying double back which is lame. I just want to borrow and give back same amount, or give back slightly more than I asked.

[ashes999]

Hey all,

Just an update -- bad news and good news.

The bad news is that this project was scrapped, alhamdulillah.

The good news is that it was scrapped because this functionality is already available!!! Kiva actually does have Islamic microfinance partners in Palestine and Yemen, among other places!

Allahu akbar!

More details (including how you can sign up, and get a free $25 credit to loan someone needy) can be found here: http://kivamuslims.wordpress.com

(I created that micro site, so let me know if it needs any updates/edits/clarifications/etc.)

[ashes999]

There's even a Muslims team on Kiva, so let's rock it

[Rizwan1]

There's even a Muslims team on Kiva, so let's rock it :)

Did this work? I'm considering to doing something like this but i want to know how it went for you?

[ashes999]

We had a good chat alhamdulillah. It went quite well.

[uzair04]

I don't know how well developed these people are but there are a couple of Islamic financial groups here in the US. 1 is Guidance Financial, the other UIF (University Islamic Finance). I'm inshAllah planning to use one of them for when I get my own home or business or whatever, but you could check them out to see if they (or their affiliates) could help.
The project might be over but there's an idea for next time inshAllah

[ashes999]

Kiva is the way to go. There are enough Islamic MFIs there.

[ashes999]

I'm offering free trials for anyone who wants to jump on the Kiva Islamic MFI bandwagon. Limited time only!

Eh, KoubaDZ?

[KoubaDZ]

Yep Jazakallah kheir for bringing me into the world of Islamic Kiva ashes :)