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Business
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Number of pages / Number of words: |
20 / 5597 |
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Despite the failure to get a ban on usury enforced at the national level, an experimental local bank was founded in the late 1950's in a rural area of Pakistan which charged no interest on its lending. The bank was backed by a small number of pious landowner prepared to deposit funds without any interest reward...
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Credit was advanced to poorer landowners for agricultural improvements. No interest was charged but a small administrative fee was levied to cover the operating expenses of the bank.
They were no shortage of borrowers but depositors viewed their payments into the bank as a once and for all effort. The institution soon ran out of funds...
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