Within the framework of Islamic MFIs, should any member default on his/her repayment of the loan in accordance to the instalments, then the group members:

Question

Quizplus · Accepted Answer

Islamic Microfinance Institutions (MFIs) operate under Shariah principles, which encourage support and mutual assistance among community members. Qard Hasan, an interest-free loan given for welfare purposes or to help someone in need, aligns with these principles. It allows group members to assist a defaulting member in a manner consistent with Islamic finance's ethical and moral standards, without involving charity (sadaqah) or external pressure on family and friends for repayment.

Within the Framework of Islamic MFIs, Should Any Member Default