Pakistani microfinance institution Asasah has reportedly agreed to purchase a range of services from Al Huda Centre of Islamic Banking and Economics (CIBE) including accounting and auditing treatments, Shariah supervision, staff training and advice on Shriah-complaint technology solutions.

Asasah has announced plans to open its first Islamic branch on March 1, 2010, and will convert its existing 27 branches over time into Shriah-compliant branches, which would offer loan products that do not charge interest. Instead of charging interest, Shariah loan products often involve the lender taking on risks with the borrower, with both parties sharing the profits. For 2008 Asasah reports a gross loan portfolio equivalent to USD 3.2 million, 28,000 borrowers and deposits of USD 70,000. Based in Lahore, Pakistan, Al Huda promotes Islamic banking through trainings, publications, an “Islamic Microfinance Help Desk” and other services.

Sources and resources:

Individual.com article:
http://www.individual.com/story.php?story=112077282

Asasah MIX Market profile
http://www.mixmarket.org/mfi/asasah

Asasah:
http://www.asasah.org/

Al Huda Centre of Islamic Banking and Economics (CIBE):
http://www.alhudacibe.com/