Increasing Financial Inclusion in the Muslim World: Evidence from an Islamic Finance Marketing Experiment

  title={Increasing Financial Inclusion in the Muslim World: Evidence from an Islamic Finance Marketing Experiment},
  author={Dean S. Karlan and Adam Osman and Nour Musallam Shammout},
  journal={Randomized Social Experiments eJournal},
Low utilization of household credit in developing countries may be partially due to religious considerations. In a randomized marketing experiment in Jordan, this paper estimates the effect of sharia-compliant loan features on demand for credit. To comply with Islamic law, the sharia-compliant product uses a bank fee rather than an interest payment structure, while keeping the rest of the product features very similar. Sharia-compliance increased the application rate for loans from 18 percent… 
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