Unlike traditional banks that often charge high-interest rates, The Islamic Welfare Society Bhatkal in India provides interest-free Islamic loans to those in need. In doing this, the Islamic institution aims at providing a helping hand to those in need.
Rather than charging interest, the Islamic Society accepts jewelry and gold as collateral.
However, in their 33 years of service, they have yet to sell or auction off a single piece of jewelry or gold, showing how sustainable their model is, for both themselves and the borrower.
It’s worth mentioning that this service is not designed for Muslims only and people of any faiths are welcome to benefit from it. Roughly, 30% of the customers are non-Muslim!
Unfortunately, the Indian government has yet to recognize the organization as a bank, and therefore they have to operate as a society in Bhatkal.
Nevertheless, the Islamic Welfare Society Bhatkal is a shining example of how an Islamic institution can thrive in helping those in need in through Islamic teachings and principles.