Islamic Finance

Bissi, cooperatives, crowdfunding: India’s Muslims find ways to raise funds for business and personal use


Photo: Muslims stand outside a mosque in Old Delhi, India, August 1, 2017. REUTERS/Cathal McNaughton

In the absence of Islamic banking and a shortage of Shariah-compliant investment options in the country, Muslims are exploring various ways to raise funds for business or personal use

Equity and real estate are popular means of managing wealth for Indian Muslim businesses and individuals but those without easy access to the capital and property markets are forced to seek out unconventional means of financing that they consider to be in consonance with their faith.

A large number of financially literate Muslims choose to invest in stocks of Shariah-compliant companies. There are hundreds of such companies listed on the Bombay Stock Exchange, which runs the S&P BSE 500 Shariah Index. The National Stock Exchange also runs three Islamic indices: Nifty 500 Shariah, Nifty 50 Shariah and Nifty 25 Shariah.

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tags:

Bissi
Chit funds
Cooperatives
Crowdfunding
Financial exclusion
Financial inclusion
Author Profile Image
Syed Ameen Kader, White Paper Media