The Circular Economy of the Islamic Group Lending Model:‎ Lending Money for Garbage in Return

The Model of Group Lending has been flourishing in the Microfinance Industry. This model has been used ‎widely to serve the needy and un-bankable group of people by lending money plus interest addition. Islamic ‎finance also embraces this model by omitting the interest and applying the Qardul Hassan to finance the ‎members' daily needs. This divine scheme's problem is the microfinance's sustainability since they have a burden ‎to bear the operational cost due to the non – interest feature of the financing. This paper tries to solve this ‎problem by utilizing the household garbage as the media to repay the Qardul Hassan financing to the Islamic ‎Microfinance Institution (IMFI). This would enable to create more added value product, selling it to get more ‎income and achieving the organization sustainability.