Objective –The purpose of this study is to examine the impact of interest-free microfinance arrangements on the
livelihood of women in India. Studies reveal that the existence of interest-free microfinance, as well as its outcome on
the livelihood of weaker sections of society (particularly women), overall improved their well-being.
Methodology –Exploratory and cross-section analysis is used to understand the satisfaction level among non-
conventional microfinance arrangements. Survey of non-conventional microfinance beneficiaries exposes the status of
women’s’ earnings, financial literacy, skills development, employment generation, household savings and poverty
alleviation.
Findings–Interest-free microfinance products like Zakat, Sadaqah, and KarzeHasna will successfully meet micro-
financing core objectives of poverty alleviation, women empowerment, gender equality, prosperity, and employment.
The analysis showed that the performance of interest-free microfinance consumers is better than conventional
microfinance consumers.
Novelty –This study is an original which is based on the demographic, sociocultural and regulatory framework of
interest-free micro finance systems to identify the acceptability in the Indian financial system. The discussions in the
study are mainly concerned with the empirical review of the impact and effect of interest-free microfinance on the
lifestyle of female microfinance users after obtaining a loan i.e., their income, expenditure, saving, entrepreneurship,
consumption, and women participation in earning income in India.
Type of Paper: Empirical
JEL Classification: G20, G21.
Keywords: Entrepreneurship; Livelihood; Education Development; Living Standards; Women Empowerment