Islamic Microfinance on Horizon

An estimated 72 percent of people living in Muslim-majority countries do not use formal financial services (Honohon 2007). Even when financial services are available, some people view conventional products as incompatible with the financial principles set forth in Islamic law. In recent years, some microfinance institutions (MFIs) have stepped in to service low-income Muslim clients who demand products consistent with Islamic financial principles—leading to the emergence of Islamic microfinance as a new market niche.

The Islamic development Bank(IDB) ,Jedda, Saudi Arabia is carrying out feasibilities in Bangladesh to promote Islamic microfinance on Sharia .There are some small MFIs in the country that are implementing program based on Sharia Rural Development Scheme of Islami Bank Bangladesh limited is carrying on Islamic microfinance .There is a considerable potential of Islamic Microfinance of Bangladesh