---
title: "Islamic microfinance | IslamicOpenFinance™"
description: "Small amounts, many customers and the need for low-cost, fair contracts. Micro-murabaha, Qard hasan, Group products and more for Islamic microfinance on IslamicOpenFinance™."
url: https://islamicopenfinance.com/sectors/microfinance/
lang: en-GB
source: "IslamicOpenFinance"
---

> Small amounts, many customers and the need for low-cost, fair contracts. Micro-murabaha, Qard hasan, Group products and more for Islamic microfinance on IslamicOpenFinance™.

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3. Islamic microfinance

Social

# Islamic microfinance

Small amounts, many customers and the need for low-cost, fair contracts.

Islamic microfinance serves micro-entrepreneurs and households with small murabaha, qard hasan and group-based products. The cost of each contract has to be low and the terms clear. IslamicOpenFinance™ provides ready contract models and mobile-first flows that keep operations light.

[Request a demo for this sector](https://islamicopenfinance.com/#start) See the live demo

Financial products

## What you build on IslamicOpenFinance™

1

### Micro-murabaha

Small asset purchases are financed by murabaha with short, simple schedules.

2

### Qard hasan

Benevolent loans are repaid at face value, with no benefit stipulated for the lender.

3

### Group products

Group-based financing records each member's obligations and the group's support.

4

### Mobile collections

Instalments are collected through mobile wallets and reconciled automatically.

5

### Donor-funded pools

Funds from donors or zakat bodies are tracked separately from the institution's own funds.

Value chain

## The actors in this chain

IslamicOpenFinance™ connects them with one contract model, one policy and one evidence trail.

Micro-entrepreneur Microfinance institution Donors and zakat bodies Mobile wallet provider Field officer

[Standard setters and regulators in the directory](https://islamicopenfinance.com/directory/?sector=microfinance)

Typical flow

## A typical flow, step by step

1. **Application**
2. **Group formation**
3. **Asset purchase**
4. **Murabaha sale**
5. **Mobile instalments**
6. **Repayment**
7. **Repeat financing**

Live demo

## See it in the terminal

A small murabaha for a sewing machine (demo), with instalments collected by mobile wallet. Demo data

**Demo** All institutions, people, amounts and events are fictional demonstration data. Nothing here is a Shariah ruling, an offer or advice; approving a product is for each institution's own Shariah board and regulator.

Glossary

## Key terms for this sector

[Murabaha](https://islamicopenfinance.com/glossary/murabaha) [Qard](https://islamicopenfinance.com/glossary/qard) [Riba](https://islamicopenfinance.com/glossary/riba) [Zakat](https://islamicopenfinance.com/glossary/zakat)

Other sectors

## Related sectors

[Social Waqf and zakat institutions Donors and beneficiaries both need to see where each amount went. - Zakat assessment (illustrative) - Collection - Eligibility and disbursement See the sector](https://islamicopenfinance.com/sectors/waqf-zakat/) [Social Government and public sector Public finance in Islamic markets needs the same governance and evidence as any bank. - Sovereign sukuk programmes - Shariah governance workflow - Treasury placements See the sector](https://islamicopenfinance.com/sectors/public-sector/) [Consumer Retail Islamic banking Customers expect instant, app-first banking; the contracts behind it still run on systems built for interest. - Murabaha personal financing - Qard and wadiah current accounts - Profit-sharing investment accounts See the sector](https://islamicopenfinance.com/sectors/retail-banking/)

## Build Islamic microfinance on IslamicOpenFinance™.

[Request a demo for this sector](https://islamicopenfinance.com/#start) [All sectors](https://islamicopenfinance.com/sectors/)