Collateral (Al-Rahn) as Practiced by Muslim Funds of North India

The present study, aims at highlighting the issues related to collateral as practiced by the five leading representative Muslim Microfinance Institutions of Northern India, which is a densely Muslim populated area. The study, in particular, examines the need for collateral, its composition, safety and costs involved, modus operandi, socio-economic impacts and its legal status in the context of India. This study also highlights the great potential of the expansion of these funds in the area of equity and venture finance.