Qordul Hasan; The Solution for Traditional Financial 'Helping Hand' Instrument Trap

Abstract

Objective – The aim of this study is to identify how Qordul Hasan, an Islamic financial scheme, can be a solution for traditional financial “helping-hand” instrument trap.

Methodology/Technique – By investigating on facts and literature, the results show that Qordul Hasan scheme appropriate to solve the financial trap that cause by traditional financial “helping-hand” instruments.

Findings – There are (1) Traditional financial “helping-hand” instruments such as rentenir, ijon, and arisan Pyo, lead to increase financially high dependency for poor. Eventually, the dependency becomes a trap. (2) Qordul Hasan has a suitable scheme to alleviate the poor from financial trap.

Novelty – As a social scheme, Qordul Hasan give a financial help. It is useful for paying debt or starting up. Gradually, when the poor have been detached from the trap, Qordul Hasan can be converted to commercial finance.

Type of Paper: Review

Keywords: Qordul Hasan, Traditional Finance, Financial Trap

JEL Classification: I22, P40, P49