The second ‘Islamic Microfinance Challenge’ to encourage the design and application of microfinance products that are complaint with Shari’ah is now accepting applications from Islamic financial services providers that offer Shari’ah compliant products that are not based on Murabaha.
CGAP (Consultative Group to Assist the Poor), the Islamic Development Bank, Al Baraka Banking Group, and Triple Jump announced the “Islamic Microfinance Challenge 2013: Beyond Murabaha.” The Challenge is also supported by the German Ministry of International Cooperation and Development, through the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.
Through a $100,000 grant award, the Islamic Microfinance Challenge is designed to spur Shari’ah-compliant product innovation as well as to help scale up application of these products by financial institutions serving large numbers of the poor.
The 2013 Challenge seeks to spark innovation in an Islamic microfinance market marked by growing demand and an as yet narrow product offering — much of it anchored in the “cost-plus-markup” product Murabaha. The Challenge encourages the design and application of microfinance products that are compliant with Shari’ah and are now accepting applications from Islamic financial services providers that offer Shari’ah compliant products that are not based on Murabaha.
The deadline for submitting applications is January 31, 2014. For more information about the Challenge, click here.