The Islamic Welfare Society, Bhatkal provides interest-free Islamic loans to people who would want it in contrast to ancient banks that usually charge high interest rates. As a result, this can be a really convenient choice for recipients, that are poor. The cash being lent out is supported by the mosque.
These days interest-free funding is laborious to seek, and the current economic model has led to a monetary stress on the poor increasing day by day. However, within the small town of Bhatkal in India, a Muslim establishment aims to produce a ray of hope for those in need.
Rather than charging interest, the Islamic Society accepts jewelry and gold as collateral.
However, in their thirty-three years of service, they have yet to sell or auction one piece of jewelry or gold, showing how sustainable their model is, for both themselves and therefore the recipient.
This service isn’t designed for Muslims solely and other people of any faiths are welcome to take loans. Interestingly, 30 percent of their customers are non-Muslim!
Unfortunately, the Indian government has not yet recognized the organization as a bank, and so they work as a society in Bhatkal.
Despite everything, the Islamic Welfare Society Bhatkal seems to be a brilliant example of how an Islamic establishment will develop in serving to those in need through Islamic teachings and principles.