Microfinance institutions have continued to grow over the past few decades, enabling greater access to credit in many of the world's less developed nations. However, in many Muslim countries, the poor tend to reject microfinance on religious grounds. This paper develops an alternative microfinance model that is Islamically permissible and tests it against the standard model.
Published in the Journal of Economic Behavior & Organization in April 2014.
By Mahmoud El-Gamal, Mohamed El-Komi, Dean Karlan and Adam Osman