NANOCREDIT FOR EMPOWERING THE UNDERPRIVILEGED: A COMPREHENSIVE SYSTEMATIC REVIEW

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Poverty is a universal reality that takes various forms worldwide. It is considered the most detrimental economic and social issue, being the root cause of human rights violations due to its destructive effects on individuals and society. In the modern era, poverty has become a major global issue, hindering economic and human development and leading to deprivation of well-being. Any credit type, micro or nano credit, must be implemented well to help the poor. Recently, there has been an interest in nanocredit. Although there are limited studies on nanocredit, there have been some attempts to review the topic. In contrast to other research, this study adopts a different methodology to thoroughly review the literature on the development of nanocredit to address the innovative and reliable tools that are dependable financial inclusion for the underprivileged. This study is being conducted to comprehensively review and analyse current research on nanocredit. Scopus, Web of Science (WoS), Emerald Insights, and Google Scholar index the reviewed literature from 2000 to 2022 for published article access. Studies have presented that nanocredit is a new paradigm in the lending industry with fewer requirements and bureaucracy. Although it is still lacking in fully complying with Shariah guidelines, nanocredit is a saviour for the poor in improving their quality of life. In simple understanding, nanocredit should be the bridge that connects Islamic finance and Islamic philanthropy.