Definition of Microfinance
Microfinance is the provision of a package of financial and non-financial services . The financial services represent saving, credit, remittances, insurance while the non- financial services represent provision of training services, consultancies and technical support.
Clients of Microfinance:
· Economically active poor persons.
· Inhabitants of rural and semi rural areas.
· Concentrating on women.
Targeted economic sectors:
Providing finance to different sectors ( service, agriculture, small industries, trade). It is worth noting that the focus is on the projects with financial sustainability along side with simplifying procedures as well as delivering finance to targeted people in their places.
Islamic finance modes:
· Murabaha: It is used when we like to buy assets .
· Mugawala: It is implemented when the client needs both fund and work at the same time like establishing a room, car maintenance , establishing a stall and digging a well.etc.
· Essalam: Financing agricultural activities.