Muslim Funds in India: Serving Poor A Study of Muslim Fund, Malegaon

The book investigates the functioning of Muslim Funds in India which pioneered the concept of ¿interest free micro finance¿. The setting-up of Muslim Fund in 1961 was initiated by selfless motivated visionaries, first in North India, Najibabad and Deoband to provide financial help to the deprived and exploited people. Subsequently the format was adapted in other parts of India. There are approximately 250 Muslim Funds operating in India. Muslims Funds levy service charges on loans, which are the income for the fund. They have become substitutes to bank and money lenders loans. Muslim Funds cater to all people irrespective of religion. Around 20 percent beneficiaries are non-Muslims. Muslim Fund, Malegaon operates on the same principles as other Muslim Funds operate. Our findings show similar results with localized variation to adapt to the specific need of the region. Such non-interest instruments can help financial inclusion of the economically deprived of the society. The government has to address this issue sooner or later. Muslim Funds have shown the way. They can be taken as example to further develop the models and instruments that banks can operate in India.