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Effectiveness of Qard Al-Hasan financing as a poverty alleviation model

Author

Listed:
  • Widiyanto
  • Mutamimah
  • Hendar

    (Faculty of Economics, Sultan Agung Islamic University
    Faculty of Economics, Sultan Agung Islamic University
    Faculty of Economics, Sultan Agung Islamic University)

Abstract

Poverty has been proven to be one of the most difficult problems to handle. This research tries to reveal the effectiveness of poverty alleviation model via Qard al-Hasan financing conducted by Baitul Mal Wat Tamwil. It is a model of free-interest financing which financed by zakah, shadaqah and other modes of charity. The result of the study shows that Qardh al-Hasan financing model is effective in empowering the economic activities of the needy. This financing model is supported by the prominent figure in the society and moslem religious leader and the economist. QH financing is potential to be developed further as a poverty alleviation model.

Suggested Citation

  • Widiyanto & Mutamimah & Hendar, 2011. "Effectiveness of Qard Al-Hasan financing as a poverty alleviation model," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 3(1), pages 27-42, April.
    • Handle: RePEc:uii:journl:v:3:y:2011:i:1:p:27-42
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    References listed on IDEAS

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    Cited by:

    1. Mohammad Haider Syed & Shahnawaz Khan & Mustafa Raza Rabbani & Yannis E. Thalassinos, 2020. "An Artificial Intelligence and NLP based Islamic FinTech Model Combining Zakat and Qardh-Al-Hasan for Countering the Adverse Impact of COVID 19 on SMEs and Individuals," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 351-364.

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    More about this item

    Keywords

    Qard al-hasan financing; effectiveness; poverty alleviation;
    All these keywords.

    JEL classification:

    • G19 - Financial Economics - - General Financial Markets - - - Other
    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other

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