ABSTRACT
The majority of Muslims turn to relatives, moneylenders and neighbours for securing a loan. As per the Sachar Committee Report , ‘The access of Muslims to bank credit is low and inadequate and average size of the credit is also meagre and low compared with other socio-religious communities both in Public Sector Banks (PuSB) and Private Sector Banks (PrSB)’. The Reserve Bank of India has found lack of thrust for increasing the credit flow to minorities in lead banks. Besides, Muslims have not received it according to their share in minority population. Having encountered the apathy of the PuSBs and PrSBs in awarding loans to Muslims, some concerned community members have started cooperative banks, in big cities of India, specifically to serve the financial need of the poor among Muslims. Not only Muslim countries but many modern, secular and industrialized countries like UK, France, Japan, Singapore and Hong Kong have become hub of Islamic banking.
