Economic Empowerment Model through Sharia’ Financing: A Case Study on the Beneficiary of ‘Mesra Soft Loan’ in Bandung City

: The paper aims to elaborate on an Islamic finance instrument as an empowerment tool in empowering the micro-small economic sector. Particularly, this study seeks to analyze socio-economic empowerment effect on the beneficiaries through an Islamic finance instrument issued by the Bandung City Government, called ‘Mesra Soft Loan' or ‘Kredit Mesra'. This research was conducted in several places in Bandung City, West Java, Indonesia, which focused on PD. BPR Kota Bandung and Masjid Baitul Ma'mur, Bandung Kidul Districts. The community, through sharia’ cooperative group, was collected to be empowered in a mosque. The contract of qardhul hasan instruments was applied from funds budgeted by the Government of Bandung City that channeled through the partnership of PD. BPR Kota Bandung and sharia' cooperatives in community mosques. This qardhul hasan instruments, through Kredit Mesra program, had given exceptional impact in developing and empowering the micro-small economic sector in the city. This program had succeeded in impacting the social, economic, and spiritual aspects of society as an empowerment program.