Saat Suharto, a young Muslim activist, began a small organization in 1992 that used funds from zakat and other charity based collections to give interest-free loans to traders.
Focusing on customer relationships has delivered strong financial results for this innovative microfinance institution
BMT Bina Dhu’afa Beringharjo
BMT Beringharjo began its work on charity based models, such as food transfer, free-of-charge health services, sanitation and fresh water supply for the poor, and a scholarship program for orphans.
Learn how highly tailored financial services & close connections with the local community have built a sense of loyalty towards this institution
BMT UGT Sidogiri
BMT UGT Sidogiri is the largest cooperative in Indonesia with 280 offices spread across the country.
Basic Rules for Wakalah (Agency) Contracts
What are the basic rules of agency (wakalah) contracts? What are the key features of a wakalah?
Introduction to Wakalah (agency) Contracts
What is wakalah? What are the types of wakalah? Why the contract of wakalah is needed?
Application of Istisna in Islamic Financial Institutions
How is the lease (istisna) contract used in modern Islamic financial institutions and what is the process of "parallel salam"?
Basic Rules for Manufacturing Sale Contracts
Learn about construction finance using the istisna contract and the specific conditions and requirements which need to be observed.
Introduction To Manufacturing Sale Contracts
What is bay al-istisna? Is it an exceptional type of sale? What are the differences between istisna and salam?
Application of Bay Al-Salam in Islamic Financial Institutions
How the concept of salam is applied in modern Islamic financial institutions? Is salam contract can be used to finance agriculture sector.
Basic Rules and Conditions for Bay Al-Salam
This brief article explains the specific conditions and requirements of salam contract which need to be observed apart from the general requirements of sale.
Introduction to Salam (Forward Sale) Contracts
What is bay al-salam? Is it an exceptional type of sale? Why it is allowed?
Modern Application of Ijarah (Lease) Contract
The contract of ijarah is widely used in modern Islamic financial institutions. This article briefly sheds light on some important applications of ijarah
What Are The Rules Governing Ijarah?
What are the basic rules and principles of the contract of ijarah? What are the similarities and differences between ijarah and sale?
Introduction to Ijarah (Lease) Contracts
What is ijarah? What is difference between ijarah and sale? What are the types of ijarah?
Prohibition of Gambling
Gambling is one of the fundamental prohibitions in Islamic finance. Learn what is prohibited gambling and why it is not permissible and unlawful.
Mudarabah in Islamic Financial Institutions
How mudarabah is used in modern Islamic financial institutions? What is the mechanism for investment account based on mudarabah? How the contract of mudarabah is structured for project financing?
Basic Rules of Mudarabah (Partnership) Contracts
What are the basic rules and conditions for mudarabah contract? What are the differences between mudarabah and musharakah?
Introduction to Mudarabah (Profit Sharing) Contracts
What is mudarabah? Why mudarabah is permissible? What are the types of mudarabah?
Diminishing Profit Sharing/Musharakah Mutanaqisah
What is musharakah mutanaqisah or “diminishing musharakah”? Why it is innovated by contemporary scholars? How musharakah mutanaqisah is used in Islamic banks and financial?
Basics of Musharakah (Joint-Venture) and Use In Islamic Banks
What are the basic rules and conditions of musharakah contract? And how it works in Islamic financial institutions?
Introduction to Musharakah/Partnership
What is musharakah? Why it is an ideal contract? What are the different types of musharakah?
Modern Application of Murabaha
What are the applications of murabaha in modern Islamic financial institutions? What is MPO and how MPO is different from an ordinary murabaha?
Introduction to Murabaha
Murabaha forms the backbone of the Islamic banking system. What is murabaha? What are its basic conditions, and how does it work in Islamic banks? Learn about murabaha in the classical context and how it's used in the modern Islamic finance context.
Classifications of Sale Contracts
What are the different types of sale contracts? How these types are different from each other and what are their conditions for validity?
Understanding The Contract of Sale
What is sale? What are the types of sale? How valid sale is differentiated from void sale? What are the basic things we need to observe in the contract of sale?
Key Elements of An Islamic Contract
What's an Islamic contract? What are the key elements of an Islamic contract, and what are the requirements for a contract to be valid and lawful?
Prohibition of Excessive Uncertainty (Gharar)
Learn why excessive uncertainty (gharar) is prohibited and what types of conditions could be excessively uncertain.
Basics of Riba (Interest) and Its Two Major Types
The word riba literally means excess, increase or addition. But what is riba from Shariah point of view and what are the major types of riba?
18 Reasons Why Riba Is Prohibited
Warnings against riba (usury) date back as far as 2,000 BC. Learn why so many religions despise and prohibit riba, and learn the basis for why usury is prohibited in Islamic finance.
Shariah and Its Role in the Islamic Financial System
What is Shariah? What does it have to do with a financial system? How can a 1,400 system of rules inform decisions about a modern, digital financial system?
Introduction to the Islamic Financial System
An Islamic financial system is governed by additional rules designed to help a society establish social justice and eliminate financial exploitation.
BMT: Combining Social Impact & Commercial Finance is a Recipe for Success
BMTs reduce poverty through a ramp of financial services tailored to the levels of economic development within their community by combining faith-based donations with commercial finance.