Creating an Islamic Microfinance Model – The Missing Dimension

Microfinance has followed economics in its use of Islamic debt-based apparatuses for limiting risk. The paper brings out the counterintuitive point that microfinance is already more structurally aligned to applying Islamic equity economic structures. The paper advocates the inclusion of a musharaka-based model. In short, microfinance institutions can find Islamic finance a natural fit in their agendas – for both debt and equity models