Analysing the Significance of Maqasid-Al-Shariah in Islamic Microfinance: A Narrative Review
Keywords:
Maqasid-al-Shariah, Microfinance, Islamic MicrofinanceAbstract
Islamic microfinance (IsMF) is a method of financing that offers small loans to the underprivileged and impoverished on an interest-free, frequently non-collateralized basis. The IsMF gives the poor access to financial resources, making it possible for them to advance their economic and social well-being. As a novel and effective financial tool, Islamic microfinance can also help the impoverished escape the cycle of poverty. While there may be several IsMF models, the procedure generally entails providing the underprivileged with small loans and technical support while also encouraging compassion and charity through abiding by Islamic Shariah's guidelines. This study aims to analyse the basic tenets of Maqasid-al-Shariah and how these tenets help shape the concepts of Islamic microfinance. In this study, a narrative literature review approach was used, and to that end, 36 peer-reviewed articles published in various peer-reviewed journals over the last ten years were gathered and examined to get the essential information. It is expected that the findings of this study will be useful for Shariah scholars and financial experts to evaluate how the concepts of Maqasid-al-Shariah are vital in explaining the framework of Islamic microfinance.
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