An Islamic Finance Perspective of Crowdfunding and Peer-To-Peer (P2P) Lending

M. Kabir Hassan, Mustafa Raza Rabbani (), Shahnawaz Khan () and Mahmood Asad Moh’d Ali ()
Additional contact information
Mustafa Raza Rabbani: University of Bahrain
Shahnawaz Khan: Bahrain Polytechnic
Mahmood Asad Moh’d Ali: University of Bahrain

A chapter in FinTech in Islamic Financial Institutions, 2022, pp 263-277 from Springer

Abstract: Abstract The present chapter makes an honest attempt to provide a comprehensive overview of sharia compliance of the disruptive innovation called Crowdfunding and P2P lending. Islamic finance startups are comparatively small and high-risk investment avenues which makes it not so attractive for the conventional banks and finance providers to provide finance to them. Crowdfunding and P2P lending have merged as a savior for them as these startups can obtain finance without too much documentary formalities. The chapter explores whether these innovative financing models complies to the strict norms of the sharia or not? It takes qualitative route to make a conclusion based on the extensive review of literature and views of the sharia scholars. The chapter concludes that although crowdfunding looks more connected to the profit and loss sharing (PLS) methods of Islamic finance whereas, P2P lending needs a serious attention from the sharia scholars to further investigate its sharia compliance. The chapter is expected to help the future researchers in further exploring the sharia compliance of the innovative Islamic financial services such as P2P lending and Crowdfunding.

Keywords: Fintech; Sharia compliance; Crowdfunding; P2P lending; SME (search for similar items in EconPapers)
JEL-codes: D47 D82 G21 G24 Z11 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-14941-2_13

Ordering information: This item can be ordered from
http://www.springer.com/9783031149412

DOI: 10.1007/978-3-031-14941-2_13

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().