Saat Suharto, a young Muslim activist, began a small organization in 1992 that used funds from zakat and other charity based collections to give interest-free loans to traders.
Focusing on customer relationships has delivered strong financial results for this innovative microfinance institution
BMT Beringharjo began its work on charity based models, such as food transfer, free-of-charge health services, sanitation and fresh water supply for the poor, and a scholarship program for orphans.
Learn how highly tailored financial services & close connections with the local community have built a sense of loyalty towards this institution
BMT UGT Sidogiri is the largest cooperative in Indonesia with 280 offices spread across the country.
What are the basic rules of agency (wakalah) contracts? What are the key features of a wakalah?
What is wakalah? What are the types of wakalah? Why the contract of wakalah is needed?
How is the lease (istisna) contract used in modern Islamic financial institutions and what is the process of "parallel salam"?
Learn about construction finance using the istisna contract and the specific conditions and requirements which need to be observed.
What is bay al-istisna? Is it an exceptional type of sale? What are the differences between istisna and salam?
How the concept of salam is applied in modern Islamic financial institutions? Is salam contract can be used to finance agriculture sector.
This brief article explains the specific conditions and requirements of salam contract which need to be observed apart from the general requirements of sale.
What is bay al-salam? Is it an exceptional type of sale? Why it is allowed?
The contract of ijarah is widely used in modern Islamic financial institutions. This article briefly sheds light on some important applications of ijarah
What are the basic rules and principles of the contract of ijarah? What are the similarities and differences between ijarah and sale?
What is ijarah? What is difference between ijarah and sale? What are the types of ijarah?
Gambling is one of the fundamental prohibitions in Islamic finance. Learn what is prohibited gambling and why it is not permissible and unlawful.
How mudarabah is used in modern Islamic financial institutions? What is the mechanism for investment account based on mudarabah? How the contract of mudarabah is structured for project financing?
What are the basic rules and conditions for mudarabah contract? What are the differences between mudarabah and musharakah?
What is mudarabah? Why mudarabah is permissible? What are the types of mudarabah?
What is musharakah mutanaqisah or “diminishing musharakah”? Why it is innovated by contemporary scholars? How musharakah mutanaqisah is used in Islamic banks and financial?
What are the basic rules and conditions of musharakah contract? And how it works in Islamic financial institutions?
What is musharakah? Why it is an ideal contract? What are the different types of musharakah?
What are the applications of murabaha in modern Islamic financial institutions? What is MPO and how MPO is different from an ordinary murabaha?
Murabaha forms the backbone of the Islamic banking system. What is murabaha? What are its basic conditions, and how does it work in Islamic banks? Learn about murabaha in the classical context and how it's used in the modern Islamic finance context.
What are the different types of sale contracts? How these types are different from each other and what are their conditions for validity?
What is sale? What are the types of sale? How valid sale is differentiated from void sale? What are the basic things we need to observe in the contract of sale?
What's an Islamic contract? What are the key elements of an Islamic contract, and what are the requirements for a contract to be valid and lawful?
Learn why excessive uncertainty (gharar) is prohibited and what types of conditions could be excessively uncertain.
The word riba literally means excess, increase or addition. But what is riba from Shariah point of view and what are the major types of riba?
Warnings against riba (usury) date back as far as 2,000 BC. Learn why so many religions despise and prohibit riba, and learn the basis for why usury is prohibited in Islamic finance.
What is Shariah? What does it have to do with a financial system? How can a 1,400 system of rules inform decisions about a modern, digital financial system?
An Islamic financial system is governed by additional rules designed to help a society establish social justice and eliminate financial exploitation.
BMTs reduce poverty through a ramp of financial services tailored to the levels of economic development within their community by combining faith-based donations with commercial finance.
Baitul Maal Wat-Tamwil ("BMT"): A Faith and Community Based Microfinance
Learn more about this topic and others such asimpact investing, Islamic finance, and blockchain.