Micro Finance with Regard to Beneficiaries Perspective in Conventional and Islamic Paradigm with the Effect of Riba (interest): A Case Study on a Particular area of Bangladesh

Abstract

We acknowledge that there is an argument in support of Riba and dispute against Riba. Once more the endless journey of “Micro Credit” at its Summit in Washington D.C, 1997 also convey; yet the “Micro Credit” still being one of the powerful tools fights against   poverty but in application it exploit slight improvement in achievement. Moreover, The initiatives of’ Govt. and non Govt Organization, efforts of GRAMEEN BANK comes up with the same end result. The poverty itself arrest the people not only with physical starvation rather causes mental sickness and thereby breaks the social harmony. Where the ends? Then the study is attempt to cover in depth analysis of the beneficiaries of Riba micro financing i.e. conventional, its content, approach in contrast with the modes, approach of  non-Riba i.e. Islamic micro financing incorporating the analysis of few beneficiaries in the local area of Bangladesh. The sample research would certainly explore the brilliant suggestion to Micro Finance of its restructuring for stepping ahead by manufacturing successful milestone to eradicate poverty.

Key Words: Riba, Islamic microfinance, Muslim Aid, Grameen Bank, ASA.