Islamic Microfinance (Social)

This course prepares learners to work thoughtfully in the social, not-for-profit side of Islamic microfinance. You will examine how Qard al-Hasan, Zakat, Sadaqah, Waqf, composite models, and Islamic financial cooperatives can be structured to address poverty, vulnerability, and economic empowerment. The course builds practical capabilities in comparing microfinance models, assessing when grants, benevolent loans, or development-oriented support are appropriate, and understanding governance, ethics, sustainability, and regulatory concerns. Through case studies from Indonesia, Pakistan, Bangladesh, and Sudan, you will learn to evaluate real institutional designs rather than abstract ideals. These skills are valuable for Islamic MFIs, Zakat and Waqf bodies, NGOs, social finance teams, development agencies, cooperatives, and organisations seeking credible, mission-aligned approaches to financial inclusion.

Islamic Microfinance (Social) connects financial practice with the pursuit of beneficial knowledge, ʿilm nāfiʿ: knowledge that helps communities respond wisely to hardship, exclusion, and need. The course explores instruments deeply rooted in Islamic social concern—Qard al-Hasan, Zakat, Sadaqah, and Waqf—while also asking how they can be governed responsibly and used with dignity. In relation to the maqāsid al-Sharīʿah, learners consider how social finance may contribute to the protection of faith, life, intellect, family, and wealth by supporting basic needs, resilience, and economic opportunity. This study invites reflection on our responsibilities before the Creator and toward creation: to treat wealth as a trust, to serve the vulnerable with care, and to seek forms of empowerment that uphold justice, mercy, and accountability.