The challenge is to make financial inclusion to reach millions of young muslims to receive financial services to the underbanked population.
Ever since Corona-19 effects starts impacting into all our lives, the breaking lines of our economies showing its fundamental flaw.This is primarily due to systematic banking run and financial crises alarming economic recession that will hit most parts of the world. India, in particular, with varied structural adjustment both to the economy and society, the economic wellbeing of people has detoriated as never before. Unemployment in domestic as well as foreign had a cascading effect due to reverse migration. People working in foreign shores drawing hefty amount are force to leave or remain idle or to return home to safety. It is high anticipation that people would prefer to stay local amid the new normal arise. Have the covid-19 stays for long, the local economies has to flourish.The migrant worker, white collar pofessionals would rather seek local employment and new start up. This hold very true for states like Kerala and Andhra Pardesh or places whose major source of household income comes from freign employment especially in Middle East.
Can Interest Free Finance be a Saviour?
The new noraml is local and unconventional with no hype in the maket – no doubt, the big question staring at most is: what does the future hold? Can Interest free finance has a role to play here? I say with certainty looking at how it fared globally as well as in India. It has a potential to accommodate and rebuild their new lives. For Instance, following global financial crises of 2007, interest free finance were resilient alternative to conventional finance. Social finance solution like waqf, zakat and microfinance provided liquidity to scale up their venture. Recently, India’s Shariah-compliant lenders offered moratoriums without extra charges for pandemic-hit debtors while long serving, huge asset holding multinational banks couldn’t able to offer. In addition, most, if not all, sharia complaint lender has been participating in one or the other way in solving basic problems during this pandemic. This is primarily due to inbuild and inherent structure of the whole system has to offer. It is so engrained to be human centric and circular in nature that everyone in the ecosystem will win.
The younger generation is calling for unconventional approaches to solve financial problem by innovation. This group, generally considered as being more sensitive than previous generations, demands wide transparency towards food, lifestyle, finance, labour, health, urban planning, migration, ecology and environment arrangement. crowdfunding platforms, charity fund raising through fintech is getting traction worldwide.
Eisar Co-Op Society, a startup registered with the Karnataka Souhardha Shakari Act 1997, modelled a platform to solve new normal financial problems. Founder S M Abud Asif says, “Anyone who needs help to set up a business or just returned from foregin or other domestic places wants to solve their financial problem by availing our membership, we will offer the most affordable solution. Moulana Shafi Shabandri Nadvi commented the importance of sharia complaint ways of handling business and finance.
This Platform will enable the accessibility of asset based projects, the solution which not only balances the fund raising needs of end users but also offers sufficient protection and security for the financial institution.
When the asset/equipment gets financed, around 50 to 70 percent of the profits will be given to the investors. The members will get the remaining sum. It is a win-win for everyone.”
Most of times people have business ideas which are promising but lacks adequate finance and legal support to invest to turn into reality, while depositor wants return through secure investment, Eisar bridges this gap and makes sure alternative financing arrangement are provided.
The members will get all support and even legal help, if needed. The startup also ropes in many similar cooperative socities operating in bhatkal and in around india, share their technical know-how, as to carry forward and help execute the ideas.
We seek to hire interns with dynamic profile who are committed to helping the poor and who share our mission and values
For details, www.eisarfinance.in
For internship opportunities contact