Akhuwat Islamic Microfinance and Beneficiaries’ Standard of Living: A Qualitative Study

Abstract

Islamic Microfinance is considered to be an effective tool for poverty reduction as well as financial inclusion for impoverished. This research analyzes the role of interest free loan on standard of living of beneficiaries of Akhuwat Islamic microfinance. The qualitative research design was employed in order to conduct the present research. Total 60 respondents from three regions (North, Central, and South Punjab) were selected for the current study by using purposive sampling. The in-depth interviews were conducted on the sampled beneficiaries for the purpose of collection of data by using semi-structured interview guide. The data were analyzed by using thematic analysis. The results showed that beneficiaries’ overall standard of living was improved due to utilization of interest free loan in purposeful income generating activity. Moreover, the originality of this study may contribute to the body of knowledge that has implications for academicians, practitioners, and policy makers. The findings underscore the practical significance of interest-free financing in uplifting livelihoods, offering valuable implications for academia, practitioners, and policy formulation within the microfinance landscape.