Determinants of economic performance of micro-credit clients and prospect of Islamic microfinance in Malaysia

This study is divided into two parts. The first part of the study utilises econometric models to assess the economic performance of clients participating in the microcredit programme of Amanah Ikhtiar Malaysia (AIM). Several proxies are used for the economic performance variable (dependent variable)...

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Main Authors:	Md Saad, Norma, Duasa, Jarita
Format:	Article
Language:	English
Published:	International Shari'ah Research Academy for Islamic Finance (ISRA) 2010
Subjects:	HG3691 Credit
Online Access:	http://irep.iium.edu.my/3958/ http://irep.iium.edu.my/3958/ http://irep.iium.edu.my/3958/1/Determinants_of_economic_performance_of_micro-credit_clients_and_prospect_of_Islamic_microfinance_in_Malaysia.pdf

id	iium-3958
recordtype	eprints
spelling	iium-39582013-03-27T06:21:41Z http://irep.iium.edu.my/3958/ Determinants of economic performance of micro-credit clients and prospect of Islamic microfinance in Malaysia Md Saad, Norma Duasa, Jarita HG3691 Credit This study is divided into two parts. The first part of the study utilises econometric models to assess the economic performance of clients participating in the microcredit programme of Amanah Ikhtiar Malaysia (AIM). Several proxies are used for the economic performance variable (dependent variable), including level of earnings/income, ratio of spending to income and value of assets. The regressors (independent variables) used are education level, age, amount of loan, source of income and ownership of assets. The second part of this study concentrates on analysing the prospects of introducing Islamic microfinance products to be used in microfinance activities in Malaysia. In the first part of the study, we find that the economic performance of AIM participants is significantly determined by the amount of money borrowed from AIM. Other factors found to influence the respondents’ economic performance are education level, age, gender, assets owned before joining AIM and area of residence. Because level of education is found to contribute significantly to the economic performance of AIM participants, it is suggested that AIM work to educate its borrowers, and more specifically, to provide business training. In the second part of the study, the results show that there is a great demand for Islamic microfinance products in Malaysia. The findings of the study could serve as general guidelines for microfinance institutions in designing Islamic microfinance products for either Muslims or non-Muslim micro- entrepreneurs. International Shari'ah Research Academy for Islamic Finance (ISRA) 2010-06 Article PeerReviewed application/pdf en http://irep.iium.edu.my/3958/1/Determinants_of_economic_performance_of_micro-credit_clients_and_prospect_of_Islamic_microfinance_in_Malaysia.pdf Md Saad, Norma and Duasa, Jarita (2010) Determinants of economic performance of micro-credit clients and prospect of Islamic microfinance in Malaysia. ISRA International Journal of Islamic Finance, 2 (1). pp. 113-130. ISSN 0128-1976 http://www.isra.my/publications/journal/english/volume-2-june-2010.html
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG3691 Credit
spellingShingle	HG3691 Credit Md Saad, Norma Duasa, Jarita Determinants of economic performance of micro-credit clients and prospect of Islamic microfinance in Malaysia
description	This study is divided into two parts. The first part of the study utilises econometric models to assess the economic performance of clients participating in the microcredit programme of Amanah Ikhtiar Malaysia (AIM). Several proxies are used for the economic performance variable (dependent variable), including level of earnings/income, ratio of spending to income and value of assets. The regressors (independent variables) used are education level, age, amount of loan, source of income and ownership of assets. The second part of this study concentrates on analysing the prospects of introducing Islamic microfinance products to be used in microfinance activities in Malaysia. In the first part of the study, we find that the economic performance of AIM participants is significantly determined by the amount of money borrowed from AIM. Other factors found to influence the respondents’ economic performance are education level, age, gender, assets owned before joining AIM and area of residence. Because level of education is found to contribute significantly to the economic performance of AIM participants, it is suggested that AIM work to educate its borrowers, and more specifically, to provide business training. In the second part of the study, the results show that there is a great demand for Islamic microfinance products in Malaysia. The findings of the study could serve as general guidelines for microfinance institutions in designing Islamic microfinance products for either Muslims or non-Muslim micro- entrepreneurs.
format	Article
author	Md Saad, Norma Duasa, Jarita
author_facet	Md Saad, Norma Duasa, Jarita
author_sort	Md Saad, Norma
title	Determinants of economic performance of micro-credit clients and prospect of Islamic microfinance in Malaysia
title_short	Determinants of economic performance of micro-credit clients and prospect of Islamic microfinance in Malaysia
title_full	Determinants of economic performance of micro-credit clients and prospect of Islamic microfinance in Malaysia
title_fullStr	Determinants of economic performance of micro-credit clients and prospect of Islamic microfinance in Malaysia
title_full_unstemmed	Determinants of economic performance of micro-credit clients and prospect of Islamic microfinance in Malaysia
title_sort	determinants of economic performance of micro-credit clients and prospect of islamic microfinance in malaysia
publisher	International Shari'ah Research Academy for Islamic Finance (ISRA)
publishDate	2010
url	http://irep.iium.edu.my/3958/ http://irep.iium.edu.my/3958/ http://irep.iium.edu.my/3958/1/Determinants_of_economic_performance_of_micro-credit_clients_and_prospect_of_Islamic_microfinance_in_Malaysia.pdf
first_indexed	2023-09-18T20:11:58Z
last_indexed	2023-09-18T20:11:58Z
_version_	1777407537611538432

Determinants of economic performance of micro-credit clients and prospect of Islamic microfinance in Malaysia

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