Role of Government Support to Micro Financing in Islamic Bank for Clean Water Connection to Low-Income Communities

Abstract

Microfinance for water connections have a very important role for low-income people who have the cash to pay for clean water connections are limited. Clean water is a basic human need for survival. It is considered that the Islamic banks to innovate microfinance products. Product innovation is the use of micro financing murabaha contracts and feasibility analysis of interventions that aim to facilitate the applicant that low-income people get clean water connections. In order for microfinance product water connection can have a wide impact, the role of government and stakeholders is required to minimize the risk.

Keywords: micro finance, islamic bank, low income communities, innovation,  government’s role, mitigate the risk.