Interest-Free Microfinance Arrangements and Its Impact on the Livelihood of Women in India

Dr Faizan Khan Sherwani , Sanna Zafar Shaikh , Zoya Zafar Shaikh

Jamia Hamdard University, New Delhi, India
University of Houstan, Taxas, U.S.A

DOI: https://doi.org/10.35609/gcbssproceeding.2021.12(48)

ABSTRACT


This study is based on the impact of interest-free microfinance arrangements on the livelihood of women in India. Studies revealed the existence of interest-free microfinance, as well as its outcome on the livelihood of weaker sections of society (particularly women), improved their well-being. Moreover, the interest-free microfinance model can also offer an alternative paradigm for millions of poor individuals who are currently not accommodated by conventional microfinancing. However, the association to Interest Free Micro Financing may be due to religious constraints, easy documentation & procedure, and low rates of processing fees, or any other motive. Interest-free microfinance products like Zakat, Sadaqah, and Karze Hasna will successfully meet micro financing core objectives of poverty alleviation, women empowerment, gender equality, prosperity, and employment. Interest-free microfinance agencies are working as unorganized institutions and not availing any support from the State. In this study, data was drawn from interest-free microfinance users in the areas of 20 districts in 5 states in India, namely UP, Bihar, Maharashtra, Karnataka, and Kerala. The discussions in the study are mainly concerned with the empirical review of the impacts and influences of interest-free microfinance on the lifestyle of microfinance users before a loan and after a taken loan i.e., their income, expenditure, saving, entrepreneurship, consumption, and women's participation in earning income in India. The analysis showed that the performance of interest-free microfinance consumers is better than conventional microfinance consumers.


Keywords: Entrepreneurship, Livelihood, Education Development, Living Standards, Women Empowerment

In cooperation with: