Ruhollah Kazemi Robati 1
Abstract
The endowment and pious foundation in Islam are so important that the progeny of Prophet (AS) has been and will be an examples for others in this regard; having attention to endowment in the words of Islamic leaders equals to the importance of the holy Quran. Endowment was a common deed among ancient people and then by the appearance of Islam, it emphasized on committing this charity. This is why the jurists have discussed a lot about it and its dimensions and thus made some rules for it.
Interest-free loan institutions have been one of the solutions proposed in the last two decades to accelerate the investment process and strengthen the financial and savings foundations, and ultimately empower communities and poverty alleviation by promoting productivity by emphasizing the use of credits. Getting small loans from banks involves many guarantees that poor and low-income people cannot afford. Therefore, these people may turn to informal financial relationships and receive money with illegal profits from others in cities and villages. This is why, the establishment of new Islamic institutions and methods in lending and financing can both meet the financial needs of the needy and provide both a legal framework and financial incentives to create the opportunities for employment and thus sets up small businesses. The purpose of this research is to review the endowment as a new Islamic source in finance.
Keywords: Granting funds, credit institutions, endowment, pious foundation
- Graduate of Criminal Law