Reazul Islam | University of Malaya, Malaysia (original) (raw)

Papers by Reazul Islam

Research paper thumbnail of Islamic Social Funds to Foster Yunusian Social Business and Conventional Social Enterprises

Administrative Sciences

This paper proposes an integrated, comprehensive financial model that can provide startup capital... more This paper proposes an integrated, comprehensive financial model that can provide startup capital to socially committed business ventures, such as social enterprises and Yunus Social Business (YSB), by using Islamic social funds (ISFs), Zakat (almsgiving), Waqf (endowments), Sadaqat (charity), and Qard Hasan (interest-free benevolent loans). The literature review method was adopted to explain this model’s architecture, applications, implications, and viability. On the basis of logical reasoning, it concludes that ISFs can yield greater social wellbeing if utilised in SEs and YSB than in unconditional charity because both business models work for social betterment in entrepreneurial ways while remaining operationally self-reliant and economically sustainable. Additionally, ISFs can complement Yunus Social Business’s zero-return investment approach to make it more robust towards social contributions. The implementation of the model orchestrated in this paper would enhance societal bus...

Research paper thumbnail of Loan Repayment Pressure in the Practice of Microfinance in Bangladesh: An Empirical Study on Grameen Bank, BRAC and ASA

Journal of Rural Development, 2018

This paper shades light on the ‘loan repayment pressure’, which is allegedly exerted by the Micro... more This paper shades light on the ‘loan repayment pressure’, which is allegedly exerted by the Micro-Finance Institutions (MFIs) on their borrowers in Bangladesh. A qualitative study was carried out to assess the experiences of the borrowers, who are engaged with Building Resources Across Communities (BRAC), Grameen Bank (GB) and Association for Social Advancement (ASA). The observations and findings from the in-depth interviews highlight the effects of repayment pressure imposed on the borrowers. This pressure pushes the borrowers into a vulnerable economic condition while disharmonising their social and family lives. Thus, this study provides a deeper understanding of repayment issues. So far, very few studies have been carried out in Bangladesh on this particular topic. Findings of this study can add value to the current literature by providing insights on the forced loan recovery technique and its negative effects.

Research paper thumbnail of Forced Loan-Recovery Technique of the Microfinance Institutes in Bangladesh and Its Impact on the Borrowers: An Empirical Study on Grameen Bank, Brac and Asa

Journal on Innovation and Sustainability. RISUS ISSN 2179-3565, 2018

This paper presents the consequences of ‘forced loan-recovery’, which is an unconstitutional tech... more This paper presents the consequences of ‘forced loan-recovery’, which is an unconstitutional technique allegedly practiced by most of the microfinance institutes (MFIs) in Bangladesh. An empirical study was carried out on the borrowers of three leading microfinance institutes namely, Grameen Bank (GB), BRAC and ASA. Data were collected from two poverty-plagued villages namely, Uttar Islampur and Ruhitpur of Munshiganj district. The mixed research methods were applied. Findings of this study demonstrate that most of the borrowers experience assorted problems on the day of loan repayment. If they fail to pay back the debt aright loan officers and their allies treat them raucously. In order to avoid such unpleasant situations, insolvent borrowers tend to make multiple auxiliary loans and payback the previous ones. As a result, they fall into the decoy of a borrowing-repaying cycle. Sometimes, over-indebtedness compels them to sell out their tangible assets. Thus, they become even poore...

Research paper thumbnail of Impact of Teacher-Gender on Primary Students’ Achievement: A Study at Malaysian Standpoint

Journal of Sociological Research, 2013

Research paper thumbnail of A Conceptual Framework for Digitalising Microenterprises to Cope with the COVID-19 Pandemic

International Journal of Learning and Development

Since the onset of the COVID-19 pandemic, underprivileged entrepreneurs have been experiencing ex... more Since the onset of the COVID-19 pandemic, underprivileged entrepreneurs have been experiencing extensive hardship and economic vulnerability. They face financial problems because of irregular business operations and shirking income opportunities. They are increasingly relying on government handouts and subsidies. Several studies suggest that the digitalisation of business is a viable way to keep businesses remaining operational during the pandemic. However, there is a significant lack of research on how microenterprises can be shifted to the digital platform to harness regular business activities and cope with this pandemic situation. Based on the review of the current literature, this paper offers a conceptual framework for the digitalisation of micro-enterprises from a Malaysian standpoint. This framework comprises four major elements of the business value chain: inbound logistics, outbound logistics, operations, and marketing & sales. It also projects light on the efficiency and ...

Research paper thumbnail of Relationships Between Supervision and Teachers’ Performance and Attitude in Secondary Schools in Malaysia

SAGE Open

This study was carried out to determine the relationships between supervision and teachers’ perfo... more This study was carried out to determine the relationships between supervision and teachers’ performance and attitude in secondary schools in Kuala Lumpur, Malaysia. This is a quantitative study where the 5-point Likert-type-scale questionnaire was used to analyze data using descriptive and inferential statistics. Simple random sampling was used to select the respondents. This study entailed respondents from various schools in one of the districts in Kuala Lumpur which comprises 200 teachers and 50 supervisors. Descriptive statistics were used to describe the status of supervision practices, teachers’ attitude toward supervision, and teachers’ level of performance after supervision. Multiple regression analysis was used to test the relationships between supervision (supervisory practices–directive, collaborative, and nondirective approach) and teachers’ performance and attitude. The current status of supervisory practices, teachers’ attitude toward supervision, and teachers’ performa...

Research paper thumbnail of Applicability of Mudarabah and Musharakah as Islamic Micro-equity Finance to Underprivileged Women in Malaysia

The European Journal of Development Research

Abstract No microfinance institutions (MFIs) in Malaysia offer mudarabah and musharakah (M&M)... more Abstract No microfinance institutions (MFIs) in Malaysia offer mudarabah and musharakah (M&M) as micro-equity instruments. This study looks into the possibility of introducing M&M for underprivileged women entrepreneurs in Selangor State. Hence, it assesses clients’ willingness to accept Shariah rules, religiosity, product knowledge and entrepreneurial skills. Data from 330 respondents were collected from female Muslim members of an MFI, namely Amanah Ikhtiar Malaysia (AIM). The data were analysed by using exploratory factor analysis (EFA), confirmatory factor analysis (CFA) and structural equation modelling (SEM). The findings show that women entrepreneurs prefer those Shariah principles that seem easy to comprehend and preserve their interests. They possess primary knowledge of M&M and fairly practise intrinsic and extrinsic religiosity, but lack proper entrepreneurial skills. Therefore, application of M&M would be viable if clients’ knowledge of Shariah and M&M were improved along with their religiosity and entrepreneurial skills. These findings would help include M&M within the context of microfinancing.

Research paper thumbnail of An Islamic Microfinance Approach to Scaling up the Economic Life of Vulnerable People with HIV/AIDS in the Muslim Society

Journal of Religion and Health

People with HIV/AIDS (PLWHA) commonly pose problems to their family as well as to society because... more People with HIV/AIDS (PLWHA) commonly pose problems to their family as well as to society because of their vulnerable health and economic conditions. Contrarily, PLWHA encounter social discrimination and adverse realities while finding it difficult to continue in their jobs. These complex phenomena interact to push them into a low economic status. A microfinance program can hopefully assist poor patients to cope with the negative economic consequences of this disease. But the conventional market-oriented microfinance institutions show reluctance to serve this group of people due to the possibilities of having credit risk. In this paper, we propose an alternative microfinancing technique that can provide a better economic life of the PLWHA while absorbing the credit risks. A comprehensive model is designed using specific Islamic financial instruments in conjugation with household economic portfolio theory. Critical realism method was adopted to construct this model. We concluded that the application of Islamic microfinance can enhance income of HIV patients while reducing the productivity-loss. This model can be useful to the microfinance practitioners and policymakers for addressing a different market segment, diversifying products, and formulating policy.

Research paper thumbnail of Inclusive Education into Mainstream Primary Education: A Comparative Study between Malaysia and Bangladesh

International Journal of Learning and Development, 2013

Research paper thumbnail of Inclusive Education into Mainstream Primary Education: A Comparative Study between Malaysia and

This study primarily attempts to compare primary education system between Bangladesh and Malaysia... more This study primarily attempts to compare primary education system between Bangladesh and Malaysia and then compares government initiatives of both countries to integrate special needs children into main stream primary education. Literature review and secondary data were used for this comparison. Findings show that student enrolment rate in both countries is almost same. But there are significant differences in the drop-out rate, infrastructure and government-budget. The percentage of boys ’ enrolment is higher than girls ’ in Malaysia but girls enrollment is a little higher in Bangladesh. Girls generally outperform boys in Malaysia but in Bangladesh boys perform better. Teachers-pupil ratio is 1:12.6 for Malaysia but it is very high 1:50 in bangladesh. The Government of Malaysia has taken different measures such as incentives for special needs children and teachers as per head count, allocation of special budgets for facilities improvement and accomodation, supplying of available te...

Research paper thumbnail of Muḍārabah and mushārakah as micro-equity finance: perception of Selangor’s disadvantaged women entrepreneurs

ISRA International Journal of Islamic Finance

Purpose This study aims to gain the perception of Selangor’s disadvantaged women on the Sharīʿah ... more Purpose This study aims to gain the perception of Selangor’s disadvantaged women on the Sharīʿah (Islamic law) rules on two micro-equity financing instruments, namely, muḍārabah (profit sharing) and mushārakah (profit-and-loss sharing) (M&M). Design/methodology/approach A survey was carried out in the rural area of Selangor district in Malaysia by administering a self-generated structured questionnaire. A total of 330 completed questionnaires were retrieved from the members of an Islamic microfinance institution (IsMFI), namely, Amanah Ikhtiar Malaysia (AIM). The data were analysed by using structural equation modelling. Findings The female borrowers of AIM perceive the Sharīʿah rules of M&M requiring high moral and ethical values and diligent repayment performance. They are aware of some other underlying provisions such as business liquidation, share transfer, information discloser and business termination. The overall findings of this study suggest that the perceived Sharīʿah rule...

Research paper thumbnail of Mudarabah and Musharakah as micro-equity finance: perception of Selangor’s disadvantaged women entrepreneurs

ISRA International Journal of Islamic Finance, 2020

Purpose – This study aims to gain the perception of Selangor’s disadvantaged women on the Sharīʿa... more Purpose – This study aims to gain the perception of Selangor’s disadvantaged women on the Sharīʿah
(Islamic law) rules on two micro-equity financing instruments, namely, mud"arabah (profit sharing) and 
mush"arakah (profit-and-loss sharing) (M&M).
Design/methodology/approach – A survey was carried out in the rural area of Selangor district in Malaysia by administering a self-generated structured questionnaire. A total of 330 completed questionnaires were retrieved from the members of an Islamic microfinance institution (IsMFI), namely, Amanah Ikhtiar Malaysia (AIM). The data were analysed by using structural equation modelling.
Findings – The female borrowers of AIM perceive the Sharīʿah rules of M&M requiring high moral and ethical values and diligent repayment performance. They are aware of some other underlying provisions such as business liquidation, share transfer, information discloser and business termination. The overall findings of this study suggest that the perceived Sharīʿah rules are akin to those that are commonly used in general partnership businesses between Muslims. It also indicates that disadvantaged entrepreneurs would accept the rules that are easy to comprehend as well as favourable to their interests. It further suggests that respondents’ experiences of microfinance and business operation do not have a significant influence on their perception of M&M instruments. Research limitations/implications – This study was limited to Selangor. So, the perception of Muslim women surveyed may not represent the views of all women in Malaysia. However, it can offer a primary understanding of the said issue.
Practical implications – The findings of this study can help IsMIFs take initiatives to offer M&M as micro-equity finance to poor women entrepreneurs.
Originality/value – So far, limited studies have been carried out on M&M-based microfinancing. This paper offers new insights presenting disadvantaged women entrepreneurs’ perception of these financing instruments.
Keywords: Islamicmicrofinance, Mud"arabah, Mush"arakah, Profit and los sharing approach, Sharīʿah rules

Research paper thumbnail of FORCED LOAN-RECOVERY TECHNIQUE OF THE MICROFINANCE INSTITUTES IN BANGLADESH AND ITS IMPACT ON THE BORROWERS: AN EMPIRICAL STUDY ON GRAMEEN BANK, BRAC AND ASA

RISUS - Journal on Innovation and Sustainability, 2018

This paper presents the consequences of 'forced loan-recovery', which is an unconstitutional tech... more This paper presents the consequences of 'forced loan-recovery', which is an unconstitutional technique allegedly practiced by most of the microfinance institutes (MFIs) in Bangladesh. An empirical study was carried out on the borrowers of three leading microfinance institutes namely, Grameen Bank (GB), BRAC and ASA. Data were collected from two poverty-plagued villages namely, Uttar Islampur and Ruhitpur of Munshiganj district. The mixed research methods were applied. Findings of this study demonstrate that most of the borrowers experience assorted problems on the day of loan repayment. If they fail to pay back the debt aright loan officers and their allies treat them raucously. In order to avoid such unpleasant situations, insolvent borrowers tend to make multiple auxiliary loans and payback the previous ones. As a result, they fall into the decoy of a borrowing-repaying cycle. Sometimes, over-indebtedness compels them to sell out their tangible assets. Thus, they become even poorer. Furthermore, borrowers use to experience discontented domestic and social lives due to such loan-collection techniques of the microfinance institutes.

Research paper thumbnail of LOAN REPAYMENT PRESSURE IN THE PRACTICE OF MICROFINANCE IN BANGLADESH: AN EMPIRICAL STUDY ON GRAMEEN BANK, BRAC AND ASA

Journal of Rural Development, 2018

This paper shades light on the ‘loan repayment pressure’, which is allegedly exerted by the Micro... more This paper shades light on the ‘loan repayment pressure’, which is allegedly exerted by the Micro-Finance Institutions (MFIs) on their borrowers in Bangladesh. A qualitative study was carried out to assess the experiences of the borrowers, who are engaged with Building Resources Across Communities (BRAC), Grameen Bank (GB) and Association for Social Advancement (ASA). The observations and findings from the in-depth interviews highlight the effects of repayment pressure imposed on the borrowers. This pressure pushes the borrowers into a vulnerable economic condition while disharmonising their social and family lives. Thus, this study provides a deeper understanding of repayment issues. So far, very few studies have been carried out in Bangladesh on this particular topic. Findings of this study can add value to the current literature by providing insights on the forced loan recovery technique and its negative effects.

Research paper thumbnail of Islamic Social Funds to Foster Yunusian Social Business and Conventional Social Enterprises

Administrative Sciences

This paper proposes an integrated, comprehensive financial model that can provide startup capital... more This paper proposes an integrated, comprehensive financial model that can provide startup capital to socially committed business ventures, such as social enterprises and Yunus Social Business (YSB), by using Islamic social funds (ISFs), Zakat (almsgiving), Waqf (endowments), Sadaqat (charity), and Qard Hasan (interest-free benevolent loans). The literature review method was adopted to explain this model’s architecture, applications, implications, and viability. On the basis of logical reasoning, it concludes that ISFs can yield greater social wellbeing if utilised in SEs and YSB than in unconditional charity because both business models work for social betterment in entrepreneurial ways while remaining operationally self-reliant and economically sustainable. Additionally, ISFs can complement Yunus Social Business’s zero-return investment approach to make it more robust towards social contributions. The implementation of the model orchestrated in this paper would enhance societal bus...

Research paper thumbnail of Loan Repayment Pressure in the Practice of Microfinance in Bangladesh: An Empirical Study on Grameen Bank, BRAC and ASA

Journal of Rural Development, 2018

This paper shades light on the ‘loan repayment pressure’, which is allegedly exerted by the Micro... more This paper shades light on the ‘loan repayment pressure’, which is allegedly exerted by the Micro-Finance Institutions (MFIs) on their borrowers in Bangladesh. A qualitative study was carried out to assess the experiences of the borrowers, who are engaged with Building Resources Across Communities (BRAC), Grameen Bank (GB) and Association for Social Advancement (ASA). The observations and findings from the in-depth interviews highlight the effects of repayment pressure imposed on the borrowers. This pressure pushes the borrowers into a vulnerable economic condition while disharmonising their social and family lives. Thus, this study provides a deeper understanding of repayment issues. So far, very few studies have been carried out in Bangladesh on this particular topic. Findings of this study can add value to the current literature by providing insights on the forced loan recovery technique and its negative effects.

Research paper thumbnail of Forced Loan-Recovery Technique of the Microfinance Institutes in Bangladesh and Its Impact on the Borrowers: An Empirical Study on Grameen Bank, Brac and Asa

Journal on Innovation and Sustainability. RISUS ISSN 2179-3565, 2018

This paper presents the consequences of ‘forced loan-recovery’, which is an unconstitutional tech... more This paper presents the consequences of ‘forced loan-recovery’, which is an unconstitutional technique allegedly practiced by most of the microfinance institutes (MFIs) in Bangladesh. An empirical study was carried out on the borrowers of three leading microfinance institutes namely, Grameen Bank (GB), BRAC and ASA. Data were collected from two poverty-plagued villages namely, Uttar Islampur and Ruhitpur of Munshiganj district. The mixed research methods were applied. Findings of this study demonstrate that most of the borrowers experience assorted problems on the day of loan repayment. If they fail to pay back the debt aright loan officers and their allies treat them raucously. In order to avoid such unpleasant situations, insolvent borrowers tend to make multiple auxiliary loans and payback the previous ones. As a result, they fall into the decoy of a borrowing-repaying cycle. Sometimes, over-indebtedness compels them to sell out their tangible assets. Thus, they become even poore...

Research paper thumbnail of Impact of Teacher-Gender on Primary Students’ Achievement: A Study at Malaysian Standpoint

Journal of Sociological Research, 2013

Research paper thumbnail of A Conceptual Framework for Digitalising Microenterprises to Cope with the COVID-19 Pandemic

International Journal of Learning and Development

Since the onset of the COVID-19 pandemic, underprivileged entrepreneurs have been experiencing ex... more Since the onset of the COVID-19 pandemic, underprivileged entrepreneurs have been experiencing extensive hardship and economic vulnerability. They face financial problems because of irregular business operations and shirking income opportunities. They are increasingly relying on government handouts and subsidies. Several studies suggest that the digitalisation of business is a viable way to keep businesses remaining operational during the pandemic. However, there is a significant lack of research on how microenterprises can be shifted to the digital platform to harness regular business activities and cope with this pandemic situation. Based on the review of the current literature, this paper offers a conceptual framework for the digitalisation of micro-enterprises from a Malaysian standpoint. This framework comprises four major elements of the business value chain: inbound logistics, outbound logistics, operations, and marketing & sales. It also projects light on the efficiency and ...

Research paper thumbnail of Relationships Between Supervision and Teachers’ Performance and Attitude in Secondary Schools in Malaysia

SAGE Open

This study was carried out to determine the relationships between supervision and teachers’ perfo... more This study was carried out to determine the relationships between supervision and teachers’ performance and attitude in secondary schools in Kuala Lumpur, Malaysia. This is a quantitative study where the 5-point Likert-type-scale questionnaire was used to analyze data using descriptive and inferential statistics. Simple random sampling was used to select the respondents. This study entailed respondents from various schools in one of the districts in Kuala Lumpur which comprises 200 teachers and 50 supervisors. Descriptive statistics were used to describe the status of supervision practices, teachers’ attitude toward supervision, and teachers’ level of performance after supervision. Multiple regression analysis was used to test the relationships between supervision (supervisory practices–directive, collaborative, and nondirective approach) and teachers’ performance and attitude. The current status of supervisory practices, teachers’ attitude toward supervision, and teachers’ performa...

Research paper thumbnail of Applicability of Mudarabah and Musharakah as Islamic Micro-equity Finance to Underprivileged Women in Malaysia

The European Journal of Development Research

Abstract No microfinance institutions (MFIs) in Malaysia offer mudarabah and musharakah (M&M)... more Abstract No microfinance institutions (MFIs) in Malaysia offer mudarabah and musharakah (M&M) as micro-equity instruments. This study looks into the possibility of introducing M&M for underprivileged women entrepreneurs in Selangor State. Hence, it assesses clients’ willingness to accept Shariah rules, religiosity, product knowledge and entrepreneurial skills. Data from 330 respondents were collected from female Muslim members of an MFI, namely Amanah Ikhtiar Malaysia (AIM). The data were analysed by using exploratory factor analysis (EFA), confirmatory factor analysis (CFA) and structural equation modelling (SEM). The findings show that women entrepreneurs prefer those Shariah principles that seem easy to comprehend and preserve their interests. They possess primary knowledge of M&M and fairly practise intrinsic and extrinsic religiosity, but lack proper entrepreneurial skills. Therefore, application of M&M would be viable if clients’ knowledge of Shariah and M&M were improved along with their religiosity and entrepreneurial skills. These findings would help include M&M within the context of microfinancing.

Research paper thumbnail of An Islamic Microfinance Approach to Scaling up the Economic Life of Vulnerable People with HIV/AIDS in the Muslim Society

Journal of Religion and Health

People with HIV/AIDS (PLWHA) commonly pose problems to their family as well as to society because... more People with HIV/AIDS (PLWHA) commonly pose problems to their family as well as to society because of their vulnerable health and economic conditions. Contrarily, PLWHA encounter social discrimination and adverse realities while finding it difficult to continue in their jobs. These complex phenomena interact to push them into a low economic status. A microfinance program can hopefully assist poor patients to cope with the negative economic consequences of this disease. But the conventional market-oriented microfinance institutions show reluctance to serve this group of people due to the possibilities of having credit risk. In this paper, we propose an alternative microfinancing technique that can provide a better economic life of the PLWHA while absorbing the credit risks. A comprehensive model is designed using specific Islamic financial instruments in conjugation with household economic portfolio theory. Critical realism method was adopted to construct this model. We concluded that the application of Islamic microfinance can enhance income of HIV patients while reducing the productivity-loss. This model can be useful to the microfinance practitioners and policymakers for addressing a different market segment, diversifying products, and formulating policy.

Research paper thumbnail of Inclusive Education into Mainstream Primary Education: A Comparative Study between Malaysia and Bangladesh

International Journal of Learning and Development, 2013

Research paper thumbnail of Inclusive Education into Mainstream Primary Education: A Comparative Study between Malaysia and

This study primarily attempts to compare primary education system between Bangladesh and Malaysia... more This study primarily attempts to compare primary education system between Bangladesh and Malaysia and then compares government initiatives of both countries to integrate special needs children into main stream primary education. Literature review and secondary data were used for this comparison. Findings show that student enrolment rate in both countries is almost same. But there are significant differences in the drop-out rate, infrastructure and government-budget. The percentage of boys ’ enrolment is higher than girls ’ in Malaysia but girls enrollment is a little higher in Bangladesh. Girls generally outperform boys in Malaysia but in Bangladesh boys perform better. Teachers-pupil ratio is 1:12.6 for Malaysia but it is very high 1:50 in bangladesh. The Government of Malaysia has taken different measures such as incentives for special needs children and teachers as per head count, allocation of special budgets for facilities improvement and accomodation, supplying of available te...

Research paper thumbnail of Muḍārabah and mushārakah as micro-equity finance: perception of Selangor’s disadvantaged women entrepreneurs

ISRA International Journal of Islamic Finance

Purpose This study aims to gain the perception of Selangor’s disadvantaged women on the Sharīʿah ... more Purpose This study aims to gain the perception of Selangor’s disadvantaged women on the Sharīʿah (Islamic law) rules on two micro-equity financing instruments, namely, muḍārabah (profit sharing) and mushārakah (profit-and-loss sharing) (M&M). Design/methodology/approach A survey was carried out in the rural area of Selangor district in Malaysia by administering a self-generated structured questionnaire. A total of 330 completed questionnaires were retrieved from the members of an Islamic microfinance institution (IsMFI), namely, Amanah Ikhtiar Malaysia (AIM). The data were analysed by using structural equation modelling. Findings The female borrowers of AIM perceive the Sharīʿah rules of M&M requiring high moral and ethical values and diligent repayment performance. They are aware of some other underlying provisions such as business liquidation, share transfer, information discloser and business termination. The overall findings of this study suggest that the perceived Sharīʿah rule...

Research paper thumbnail of Mudarabah and Musharakah as micro-equity finance: perception of Selangor’s disadvantaged women entrepreneurs

ISRA International Journal of Islamic Finance, 2020

Purpose – This study aims to gain the perception of Selangor’s disadvantaged women on the Sharīʿa... more Purpose – This study aims to gain the perception of Selangor’s disadvantaged women on the Sharīʿah
(Islamic law) rules on two micro-equity financing instruments, namely, mud"arabah (profit sharing) and 
mush"arakah (profit-and-loss sharing) (M&M).
Design/methodology/approach – A survey was carried out in the rural area of Selangor district in Malaysia by administering a self-generated structured questionnaire. A total of 330 completed questionnaires were retrieved from the members of an Islamic microfinance institution (IsMFI), namely, Amanah Ikhtiar Malaysia (AIM). The data were analysed by using structural equation modelling.
Findings – The female borrowers of AIM perceive the Sharīʿah rules of M&M requiring high moral and ethical values and diligent repayment performance. They are aware of some other underlying provisions such as business liquidation, share transfer, information discloser and business termination. The overall findings of this study suggest that the perceived Sharīʿah rules are akin to those that are commonly used in general partnership businesses between Muslims. It also indicates that disadvantaged entrepreneurs would accept the rules that are easy to comprehend as well as favourable to their interests. It further suggests that respondents’ experiences of microfinance and business operation do not have a significant influence on their perception of M&M instruments. Research limitations/implications – This study was limited to Selangor. So, the perception of Muslim women surveyed may not represent the views of all women in Malaysia. However, it can offer a primary understanding of the said issue.
Practical implications – The findings of this study can help IsMIFs take initiatives to offer M&M as micro-equity finance to poor women entrepreneurs.
Originality/value – So far, limited studies have been carried out on M&M-based microfinancing. This paper offers new insights presenting disadvantaged women entrepreneurs’ perception of these financing instruments.
Keywords: Islamicmicrofinance, Mud"arabah, Mush"arakah, Profit and los sharing approach, Sharīʿah rules

Research paper thumbnail of FORCED LOAN-RECOVERY TECHNIQUE OF THE MICROFINANCE INSTITUTES IN BANGLADESH AND ITS IMPACT ON THE BORROWERS: AN EMPIRICAL STUDY ON GRAMEEN BANK, BRAC AND ASA

RISUS - Journal on Innovation and Sustainability, 2018

This paper presents the consequences of 'forced loan-recovery', which is an unconstitutional tech... more This paper presents the consequences of 'forced loan-recovery', which is an unconstitutional technique allegedly practiced by most of the microfinance institutes (MFIs) in Bangladesh. An empirical study was carried out on the borrowers of three leading microfinance institutes namely, Grameen Bank (GB), BRAC and ASA. Data were collected from two poverty-plagued villages namely, Uttar Islampur and Ruhitpur of Munshiganj district. The mixed research methods were applied. Findings of this study demonstrate that most of the borrowers experience assorted problems on the day of loan repayment. If they fail to pay back the debt aright loan officers and their allies treat them raucously. In order to avoid such unpleasant situations, insolvent borrowers tend to make multiple auxiliary loans and payback the previous ones. As a result, they fall into the decoy of a borrowing-repaying cycle. Sometimes, over-indebtedness compels them to sell out their tangible assets. Thus, they become even poorer. Furthermore, borrowers use to experience discontented domestic and social lives due to such loan-collection techniques of the microfinance institutes.

Research paper thumbnail of LOAN REPAYMENT PRESSURE IN THE PRACTICE OF MICROFINANCE IN BANGLADESH: AN EMPIRICAL STUDY ON GRAMEEN BANK, BRAC AND ASA

Journal of Rural Development, 2018

This paper shades light on the ‘loan repayment pressure’, which is allegedly exerted by the Micro... more This paper shades light on the ‘loan repayment pressure’, which is allegedly exerted by the Micro-Finance Institutions (MFIs) on their borrowers in Bangladesh. A qualitative study was carried out to assess the experiences of the borrowers, who are engaged with Building Resources Across Communities (BRAC), Grameen Bank (GB) and Association for Social Advancement (ASA). The observations and findings from the in-depth interviews highlight the effects of repayment pressure imposed on the borrowers. This pressure pushes the borrowers into a vulnerable economic condition while disharmonising their social and family lives. Thus, this study provides a deeper understanding of repayment issues. So far, very few studies have been carried out in Bangladesh on this particular topic. Findings of this study can add value to the current literature by providing insights on the forced loan recovery technique and its negative effects.