Microfinance: Islamic Model

The goal of this paper is to argue that Qarz-e-Hasna is the Islamic Model of Micro-Finance. This is a radically different approach from mainstream views

§ Equality: Islam carries a very strong message of the equality of all human beings in front of God. Superiority comes only from closeness to God. The Prophet gave an example of a poor man who, because of his relationship to God, was much more important than a world full of rich men. Formal relationships like servant/master, teacher/student, king/people should not fill people with pride and make them think that they are superior or inferior. An important consequence is the Islamic emphasis on the dignity of the poor. This is to be contrasted with class-based attitudes that associate superiority and inferiority with social group or wealth. In Islam, several measures are taken to ensure that the poor are not treated disrespectfully in the process of charitable giving. The Quran commands Muslims not to spoil our charity by saying hurtful words – indeed, it is better not to give than to give abusively: Q2:262 Those who spend their substance in the cause of Allah, and follow not up their gifts with reminders of their generosity or with injury,-for them their reward is with their Lord: on them shall be no fear, nor shall they grieve.” The rich are told that the poor have rights in their wealth. Further, they are obliged to seek out needy people. The poor are told not to ask for help; instead they are urged to conceal their needs. The Quran tells us that the needy will not reveal their needs, and that they may be recognised by certain signs: Q2:273 (Charity is) for those in need, who, in Allah's cause are restricted (from travel), and cannot move about in the land, seeking (For trade or work): the ignorant man thinks, because of their modesty, that they are free from want. Thou shalt know them by their (Unfailing) mark: They beg not importunately from all the sundry. And whatever of good ye give, be assured Allah knoweth it well. It is then up to the rich to find ways of giving that will not offend the dignity of the poor..

These two books might also be helpful... download them from the links.

Mashiyaat ka islami falsafa by Molana Abdul Bari Nadvi RA (it contains a whole chapter on qard or charity, please go through the index) some relevant material is attached in excerpt attached below.

http://www.4shared.com/office/1dG6P-OD/Maashiaat_ka_Islami_Falsafa_By.html

Islamic banking and finance by Tarek el Diwany (search for the word charity in the pdf file)

http://www.4shared.com/office/_EMfg5Zj/Islamic_Banking_and_Finance_Ta.html