The convenience of zakat integration into microfinance setting: An analytical path

The value of using Zakat funds in Microfinance platform was uncritically accepted among researchers, founding their reasoning on the social objective of Islam through Zakat to eradicate poverty; the previous studies have undermined the philosophical and religious nature of Zakat and ignored the substantial literature developed through centuries creating a comprehensive system of the situation, The purpose of this study is to explore the convenience of using Zakat into Microfinance schemes in context of The eligibility of the suggested integration and the sustainability and competency of funds provided by Zakat in eradicating poverty. A qualitative research method of interpretation of contemporary scholarly texts done on Zakat is employed supported by a formula developed to test Zakat worthiness as a tool of poverty alleviation. This paper finds that nevertheless, Zakat funds are competence and worthy in materially reducing poverty; still the theoretical settings hinder its integration into Microfinance scheme; however, an alternative approach has emerged through the process and is strongly recommended to be followed in future researches.