Micro financing is such a great field upon which depends the possibility of poor and down trodden people that they can be developed, this finance is provided by Islamic banks this is very helpful for the needy people it’s a ray of hope for them .Microfinance has its strong historical background as it is provided in earlier times by the kings of Islamic states to the people who are farmer or merchants to skillful persons so that they can raise their standard of living so it’s a chance provided by the modern day Islamic banks and it is performing well in remote areas .Micro financing is a very popular tool of Islamic banking.
This finance is interest free so people don’t hesitate in taking such loans. The way of issuing such finance is easy as the amount of finance is low so there is no problem in the recovery of the lending amount the client of micro financing are poor and needy people and it also address to small scale business entrepreneurship this microfinance tool is as much effective as it can have the potential of bringing prosperity from the grass root level microfinance if effectively used can be proved a blessing in disguise for economy.
The Tameer Microfinance Bank in Pakistan is offering the services of microfinance based on no profit no interest based concept it is interest free so this is a great opportunity for those people who want to gain loan at minimum rate of interest. Micro financing is very popular in Islamic countries and is gaining momentum in India as there are more poor people and jobless people so the opportunity is provided by micro finance. Many of the banks are greatly interested in this mode of financing as there is need of awareness among the investors of such mode of financing.
This is gaining momentum among the common people. Conferences and seminars have been launched to bring awareness among the masses. For such a great economic tool investors are taking keen interest in such financing as it is very fruitful for the economy. These occasions provide information that how by following Islamic Shariah we can improve our banking structure and reduce poverty and contribute to macro finance stability. This microfinance can help the small scale business organization as it is doing so. The Islamic country is having great potential for micro financing as we can see in Pakistan micro financing has contributed in industrial sector from 4.5 % to 6.2% last year and it is gaining momentum
The aim of Tameer Microfinance Bank is to target the poverty which plagues the majority of population. This bank provides the opportunity of microfinance, micro leasing, micro insurance, micro savings and micro mortgage. It offers opening micro enterprises through Islamic micro finance. The conferences and seminars are held for the purpose of sharing experience and to introduce new strategies how microfinance can be prove effective in such circumstances. But one can observe microfinance is socially responsible activity as its has gain popularity in lower class because it’s all about providing self esteem and dignity to down trodden people as well as it encourages women to take initiative by inaugurating their small business it can also prove beneficial for small scale cottage industry as it really needs such finance so to be certain microfinance can help in uplifting the society from ground level the fruit of Microfinacing can be enjoyed if it is implemented with thorough planning for the welfare and social well being of society.
-- Al Arabiya Digital