TAF PUBLISHING

This study aims to examine the prospects of Islamic microfinance in India. The quantitative method is employed, and primary data is collected through a questionnaire. The probability sampling method is used. Out of 500 questionnaires disbursed, 303 are received. The result of the questionnaire shows that the majority of the public believes Islamic Microfinance Institutions (IMFIs) will aid the poor financially, poverty will be alleviated, it will be beneficial to the society, and will help micro SMEs become more developed. Similarly, the majority of the respondents also agreed to IMFIs being ethical, meant for all religions, catering to the needs of the society, and help to extend loans without collaterals. This reflects that Islamic Microfinance holds great potential and prospects and will be widely accepted by the public and also the Indian market. Policymakers should consider IMFIs, establish guidelines and promulgate them as this can pave the way to a financially more stable India. The limitation of the study is that the outreach was among people with access to the internet. Therefore, people with no internet and education could not be included in the perception of those in rural areas. Hence, future research will fulfill this lacuna.