What is Islamic Microfinance?
Islamic microfinance provides small financial services, such as microloans, while adhering to Sharia principles that prohibit riba (interest) and gharar (uncertainty). Its goal is to empower the poor and small entrepreneurs to improve their lives without violating Islamic rules.
Number of Muslims Unbanked
According to the Islamic Development Bank, about 1.4 billion Muslims avoid conventional banks due to interest. Out of ~1.9 billion Muslims, it's estimated that over 70% are unbanked, meaning potential beneficiaries of Islamic microfinance could reach 1.3 billion people.
Supply-Demand Gap
The Islamic finance market is ~$4 trillion, but microfinance accounts for a tiny fraction. Islamic banks prefer large commercial financing, leaving a vast segment of the poor unserved. This creates a massive opportunity for innovative Islamic microfinance.
Purchasing Power of Poor Muslims
Poor Muslims represent a huge untapped market. The average microloan size in Islamic countries ranges from $200-500. If only 10% of the unbanked are reached, the potential demand is 130 million loans worth $26-65 billion.
How Qist Implements That
Qist offers Islamic microfinance on Base chain using USDC. The seller owns the asset, no interest, only 2% fee. Surplus is returned, with a 3-day grace period. Any needy Muslim can get a small loan without traditional banks.
Discover Qist: qist.info
Informational content, not financial advice