Understanding the Behavior of Qardhul Hassan Borrowers in Nano-Entrepreneurship-Reference-Cited by-同舟云学术

Understanding the Behavior of Qardhul Hassan Borrowers in Nano-Entrepreneurship

Published:2023-09-25 Issue: Volume: Page:21-33
ISSN:2327-350X
Container-title:Advances in Logistics, Operations, and Management Science
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Author:

Musari Khairunnisa¹^ORCID,Fajariyah Nur Alifah¹^ORCID,Khotimah Khusnul¹

Affiliation:

1. Kiai Haji Achmad Siddiq State Islamic University, Indonesia

Abstract

Most emerging countries have communities categorized as excluded and underserved, unbanked and underbanked, the bottom of the pyramid (BoP), and ultra poor which have no ability to access bank financing. They are often victims of loan sharks. They should be a target of microfinance, but most banks and also microfinance institutions (MFIs) do not yet do well in serving them. Likewise, Islamic microfinance in fact has also not succeeded in reaching these people. Islamic nanofinance through qardhul hassan is promoted as a new paradigm to fill the Islamic microfinance gap. Through a field experiment for eight months by providing a fund IDR5 million with a maximum loan IDR1 million to provide nanofinancing, this study investigated the financial behavior of the nano-entrepreneurs in managing the qardhul hassan in Indonesia. The outcome of this study is expected to be input for policymakers, especially for the Islamic micro-industry, to come up with financing schemes according to the characteristics of these communities.

Publisher

IGI Global

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