Muslim Association of Malawi (MAM) with funding from a Kuwait business person will be giving out Sharia-compliant interest free loans to the youths.
Sharia has no jurisdiction in Malawi and the loans will in no way pave for compliance of the Islamic loans but only putting their faith in practise.
According to the Islamic faith, paying or charging interest on any loan is not permitted.
MAM treasurer general Bujad Kalera confirmed the development.
Kalera said MAM is very concerned with the status of Malawi Muslim youth where most of them are jobless and have no income generating activity.
“Islam taught us to work hard to earn a living, so we are very concerned with our youth,” he said.
Kalera further added that those with already existing businesses will have an advantage to the loan.
One of the Muslim artists Ahmad Pilo, who is also a video and audio producer, said the loan will help artists in production of new songs.
Pilo said as artists they don’t benefit from sales of their music due to piracy.
Adding on the same development Ishmael Katawala said music is playing a great role in spreading the message of Islam.
Katawala further said the loan will boost talents of youngsters.
The loans is in form of money a minimum of K1 million will be given to be refunded within a period of one year.
Katawala said those taking out the loans will pay back exactly the same amount as those who use the traditional scheme, essentially making a charitable donation rather than paying back interest.
The new loans will operate under the islamic model of ‘Takaful’, where people contribute money into a pool system to guarantee other members against loss or damage.Follow and Subscribe Nyasa TV :