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Financial Inclusion through Islamic Microfinance: Empirical Evidence from Developing Countries

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  • Muhammad Syahrul Hidayat,
  • Nurul Mazidah,
  • Didik Supardana Setia Aksana,
  • Nurhayati
Muhammad Syahrul Hidayat
State Islamic University of Sunan Ampel Surabaya
Bio
Nurul Mazidah
State Islamic University of Sunan Ampel Surabaya
Didik Supardana Setia Aksana
State Islamic University of Sunan Ampel Surabaya
Nurhayati
State Islamic University of Sunan Ampel Surabaya
Published in : International Journal of Scientific Research and Management (IJSRM) , Vol. 11 No. 11 (2023)

Published 2023-11-10

Keywords

  • Financial Inclusion, Islamic Microfinance

Copyright (c) 2023 Muhammad Syahrul Hidayat, Nurul Mazidah, Didik Supardana Setia Aksana, Nurhayati

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This study explores the important role played by Islamic microfinance in promoting financial inclusion in developing countries. Using empirical evidence, this research shows how Islamic microfinance institutions have helped in reducing poverty and improving the economic welfare of underprivileged communities. Through secondary data analysis and case studies, this research highlights how sharia economic principles such as the prohibition of riba (interest) and the emphasis on asset-based contracts have facilitated access to financial services for individuals previously underserved by conventional financial institutions. This research also discusses the challenges faced by the Islamic microfinance sector and provides recommendations for the future

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