Poverty alleviation through micro credit is only possible with an interest free micro credit program.  It is not possible with the interest based micro credit programs.

Micro credit institutes have been doing their business all over the word for a long time. But they did not succeed in alleviating poverty, which according to them, was the main objective of their program. It is because these micro credit programs are base on interest. Their high rate of interest makes the business worse for the borrowers. To make micro credit an active tool for poverty alleviation, we are going to introduce an interest free micro credit program in Bangladesh. To learn more about this new program visit http://karnafuli.angelfire.com/ and click on Reformed micro credit program. This proposed micro credit program is based on Mudarabah mode of business.

The definition of Mudarabah : A form of partnership where one party provides the funds while the other provides expertise and management. The latter is referred to as the Mudarib . Any profits accrued are shared between the two parties on a pre-agreed basis, while loss is borne by the provider(s) of the capital, who is called the rabb-ul-mal .