Sugeng Hadi Utomo, Moeheriyono
Microfinance Institutions (MFIs) has the advantage of a strong commitment to empowering small and micro businesses, more flexible procedures, and proximity to the rural areas. This study focused on MFIsdevelopment model as an alternative for rural economic development is still facing obstacles after the eruption of Mount Kelud in the past and limited capital perpetrators business. This research usedescriptive qualitative to describes the development of models of Microfinance Institutions as an alternative source of small business financing in the rural after the eruption of Mount Kelud in East Java provincial government. The population in this study is the regional government of East Java Province. While the sample is Blitar, Tulungagung, Kediri, and Nganjuk district. A purposive sample was taken from each piece, which is considered relevant and important to represent this study. Microfinance Institutions became one of the alternatives empowerment of small rural enterprises.Model 1.General loans, Investment loans, and Consumptive credit, that as offered by MFIs roommates have been running in the area. Model 2.Murabaha, Mudarabah, Musharakah, and Qardhul Ijaroh Hasan, as implemented by the Cooperative based on the principle sharia.Model 3. Working Capital Loan and Loan to Maturity as implemented by the cooperative based on the conventional principles, such as savings and loans. IJER © Serials Publications.
Faculty of Economics, Universitas Negeri Malang-Indonesia, Indonesia; Faculty of Economics, Universitas Bhayangkara Surabaya-Indonesia, Indonesia
