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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

The View of Zakat Practitioners on Micro Financing from Zakat Funds as Productive Zakat for Asnaf Entrepreneurs

Muhammad Anas Ibrahim, Nurul Ilyana Muhd Adnan, Aemy Aziz, Hafizuddin Muhd Adnan, Nurul Izwah Muhd Adnan

http://dx.doi.org/10.6007/IJARBSS/v11-i4/9590

Open access

This paper is intended to perceive the distribution of zakat in the form of micro financing from Zakat funds. The current distribution method is more on "one off". However, often misused, or funds provided are not accountable by the receiver. Therefore, the method of zakat distribution in this form of micro financing will offers mutual responsibility to be implemented, thus the funds were distributed without any losses. The question is, what happens if in the future, the amount of annual zakat is reduced while the ASNAF is increasing? Moreover, the working capital given in form of micro financing is claimed having the RIBA elements. Data were collected from informan, through a semi-structural interview on Zakat practitioners. The Data then analyzed by content analysis. The findings from primary and secondary data show that there are views that allow the distribution of zakat given by micro financing for business capital or additional capital for business growth among ASNAF entrepreneurs. The proper contract used is Qard Hasan, mudarabah, Musyarakah Mutanaqisah, Ijara. It will deliberate that there has been a definition of micro financing, the legal of microfinance funding from zakat funds and microfinance financing practices from zakat funds in foreign countries whereas it can be used as a model and apply it for zakat institutions in Malaysia.

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Interviews
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In-Text Citation: (Ibrahim et al., 2021)
To Cite this Article: Ibrahim, M. A., Adnan, N. I. M., Aziz, A., Adnan, H. M., & Adnan, N. I. M. (2021). The View of Zakat Practitioners on Micro Financing from Zakat Funds as Productive Zakat for Asnaf Entrepreneurs. International Journal of Academic Research in Business and Social Sciences, 11(4), 1083–1097.