Is Microcredit Halal?

[jinnzaman]

Assalamu alaikum

May this reach you in the best state of health and iman. Ameen.

Mohammad Yunus recently received the Nobel Peace Prize for his implementation of microcredit in Bangladesh.

http://www.iht.com/articles/2006/12/10/news/nobel.php

What is the ruling on microcredit?

Jazakallah khairun.

masalama

[if0rg0t]

Grameen Bank charges interest, which is Haram. While it may benefit may people and bring them out of poverty, it's also inviting the wrath of Allah (swt).

See point 11:
http://www.grameen-info.org/bank/GBGlance.htm

[jinnzaman]

Someone was telling me that when the debtor makes the payment, they acquire ownership in the bank. Thus, the so-called 'interest' is more like a stock purchase than the repayment of a loan.

Also, there's not collateral, so its not like a conventional loan.

I'm not trying to argue, but I'd like to get a fatwa from a scholar who has thorughly researched microcredit.

[jinnzaman]

Does anyone know if Mufti Taqi Usmani has a fatwa on this?

[fatboy_dhaka]

ppl were so happy when this * great honour * was given to mr. yunus .
something to cheer about they said
greatest achievement since independence they said
personally this is disgrace i feel
ive heard Shuyukh both Khalifa of Hazrat Abrarul Haq Hardoi RA express their dissatisfaction over him.