Poverty to Profit

The author cites the exorbitantly high prices of conventional microfinance’s interest rate as 22% at Grameen and as high as 50% elsewhere. The author then lays out Islamic microfinance’s alternative under the mudaraba contract. The bank should not interfere with business transactions, although it should be permitted to give advice. The amount the bank collects from profit should not be fixed but rather be percentage-based and be agreed upon before the business opens.