Micro Finance

Micro Finance is a source of financial assistance to those who wish to try their luck in trade or some pey business and they are unable to reach the banks and get benefited by the services provided by them. There are two types of such people: Banking on the basis of contacts by individual trader or pey businessman. Based on Group Model, various traders collecvely approach the bank under the leadership of any team leader. The basic aim of the Micro Finance is to free the people from the clutches of poverty and destuon and make them economically sound and stable. As per the procedure whoever intends to get benefited by this scheme, he/she shall have necessarily an account with Taqwa. All the customers with Saving, Current or Tawfeer (pigmy) account with Taqwa can avail the benefit of this scheme. The quantum of Micro Finance is minimum ₹ 10,000/- or its mulples with a maximum limit of ₹1,00, 000/-. To avail Micro Finance, the customer compulsorily shall have a deposit of half the amount of Finance in any one of his account with Taqwa. For example, to avail ₹10,000/- as Micro Finance, there must be around ₹5000/- in the account of the customer. And then, Taqwa will collect an expected profit of 0% to 2.5% monthly on the finance amount of ₹ 10,000/- based on his business condion. In this scheme Taqwa will give tenure of 120 days and during this period the customer will repay the amount according to his convenience. Aer the compleon of spulated period, if the amount is not repaid fully, then for the balance amount a new agreement will be executed wherein the customer will pay expected profit of 0% to 2.5% monthly to the Taqwa. Under the risk management process, Taqwa will collect a postdated Cheque from the customer. If anyone repays the availed amount of Micro Finance before the spulated me, e.g. if somebody repays the amount to Taqwa within one month, then the expected profit of one month only will be collected from him/her. In case any trader faces loss in the Micro Finance amount availed from Taqwa,asper the Shari'a principle 'Wakala', aer due scruny the Taqwa will bear the loss too. This scheme is based on the Shari'a principle called 'Wakala Investment'. However, Shari'a term 'Musharaka' or 'Mudaraba' too may also be applied on this scheme, as per the requirement.

• Micro finance a/c can be opened instantly by digital banking.
• Minimum finance is Rs. 10,000/- for four months. Repayment is daily.
• Expected profit is 0% to 5%.
• SMS alert service is available.
• Passbook is issued to record deposits and finance transactions.
• Sharia term applied is “Wakala Investment”.