A team from the Islamic Shariah Research Academy, a Malaysian outfit aimed at providing avenues for the development of Islamic finance, recently visited an interest-free microfinance program based on Islamic lending principles that was developed by Helping Hand for Relief and Development (HHRD), a US-based humanitarian relief and global development outfit that operates in 16 countries in Africa and the Middle East. The team, headed by Dr Lal Akram Din, chairman of the academy, came to Islamabad, Pakistan, to learn how HHRD incorporates Islamic practices such as murabaha, a form of interest-free loans, into its microfinance programs. Dr Din reportedly suggested that Malaysian microfinance institutions (MFIs) could benefit by implementing some of the practices employed by HHRD.
HHRD launched its interest-free microfinance program in 2005 in response to an earthquake that affected northern parts of Pakistan and parts of Azerbaijan. Although little information is available on the organization or its microfinance program, HHRD reportedly issued loans to poor people ranging from PKR 20,000 (USD 234) to PKR 100,000 (USD 1,169) in 2005 to assist in the foundation of new businesses and to otherwise sustain the livelihoods of individuals affected by the earthquake.
As of 2009, HHRD reported USD 2.69 million in total assets and total revenues of USD 6.32 million for 2009 [1,2].
By John Howard-Smith, Research Associate
About Helping Hand for Relief and Development (HHRD): Based in Detroit in the US state of Michigan, Helping Hand for Relief and Development (HHRD) is a humanitarian relief and development outfit that incorporates Islamic ideals and practices such as murabaha, a form of interest-free loans, into its operations in 16 countries in Africa and the Middle East. HHRD aims to eradicate poverty and social injustice through various programs based including services for orphans, natural disaster relief, vocational training for women and interest-free microfinance. As of 2009, HHRD reported USD 2.69 million in total assets and total revenues of USD 6.32 million for 2009.
[1] The News: “HHRD Microfinance Programme Lauded”?, http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=33455&Cat=6&dt=2/28/2011
[2] The Free Library: “HHI Launches Interest-free Microfinance Scheme in Quake-hit Areas”, http://www.thefreelibrary.com/HHI+launches+interest-free+micro-finance+scheme+in+quake-hit+areas.-a0204097707
MicroCapital’s Microfinance Universe profile: Helping Hand for Relief and Development (HHRD), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Helping+Hand+for+Relief+and+Development
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROFINANCE EVENT: 3rd CIS Islamic Banking and Finance Forum; March 14-16, 2023; Tashkent, Uzbekistan
- MICROFINANCE EVENT: 5th Global Takaful and Re-takaful Forum; September 19-21, 2023; Dubai, UAE
- MICROFINANCE EVENT: Global Islamic Microfinance Forum; November 21-24, 2022; Dubai, UAE
- MICROFINANCE EVENT: 10th African Islamic Finance Summit; May 3, 2023; Serrekunda, The Gambia – NEW DATE
- MICROCAPITAL BRIEF: HugoBank, KT, Mashreq, Raqami Islamic, Telenor Microfinance Earn Regulatory Approval to Pilot Digital Banking Services in Pakistan
