Integrating Waqf with Islamic Microfinance Institutions: Growth Expansion and Sustainable Development in India- Short Communication Atif Aziz 1 and B.D. Pandey 2 1 Research Scholar, Department of Management, Sadhu Vaswani College, Barkatullah University, Bhopal (India) 2 Professor, Department of Management, Sadhu Vaswani College, Barkatullah University, (Bhopal India) Corresponding Author Email: - atifaziz82@gmail.com Acceptance Date 18th July, 2020 Ansari Journal of Ultra Scientist of Engineering and Management (AJUSEM) Vol. 4(1), 9-11 (2020). website :- www.enggandmgtjournal.org ISSN No. 2581-5687 (Online) Abstract In India, the population of Muslims is about 180 million and the majority of them live below poverty line and if non-Muslims are taken together this number reaches to about 77% of total Indian population, Microfinance is providing financial services to poor people, who traditionally lack access to banking and related services. Islamic Microfinance is based on Islamic principles in which interest/ Riba / Usury is prohibited. When loan is given without interest on the borrowed money, this loan is known as Qard-e-Hasana. The operational costs incurred in Islamic Microfinance Institutions (IMFI) is one of the major issues i.e. from where operational costs (which includes rent of space, salary of personnel, other overhead costs etc) should be compensated as no interest is charged in Islamic Microfinance. Islamic microfinance products are still quite small relative to the conventional microfinance sector and there is hindrance in growth, expansion and sustainable development due to the above discussed issue. Many IMFI charge 3-5% as service charge from the borrowers to cover operational cost, this service charge is interest/ riba as fixed amount is charged on the borrowed money, secondly, it gives an extra financial burden to the people who are already poor and needy. The primary purpose of IMFI is to provide financial support to the financially venerable people of the society and poverty alleviation. The problem discussed above can be solved by using Masjid space for IMFI office and using resources obtained from Waqf and Infaq. Key words : Islamic Microfinance Institution (IMFI), Riba, Interest, Waqf, Infaq, India. Introduction In India, the population of Muslims is about 180 million and the majority of them live below poverty line and if non-Muslims are taken together this number reaches to about 77% of total Indian population, Microfinance is providing financial services to poor people, who traditionally lack access to banking and related services 5 . For sustainable expansion growth and progress of any Islamic Microfinance institution (IMFI) the problem of finding a way out to meet operational costs as no interest is charged from the borrowers is a big challenge. To meet the incurred operational costs many IMFI charge service charge of 3-5 % from the borrowers. According to some scholars it is permissible and for some other scholars it is other form Riba as fixed amount is being charged by changing name of interest to service charge. In any IMFI two types of accounts are opened