By combining the contract of Muḍārabah (non-profit-oriented), Takāful (mutual risk coverage), and Qarḍ Taysīr (interest-free financing), the Muḍārabah Taysīr model provides a creative and Sharīʿah-compliant framework for microfinance. This hybrid strategy places a strong emphasis on risk-sharing, moral financial conduct, and easier access to capital, especially for micro businesses (MEs). Under this arrangement, a microfinance organisation (Muḍārib) receives cash from a donor (Rabb al-Māl) and disburses interest-free loans to micro-entrepreneurs. A Takāful fund is created to distribute risk among stakeholders and reduce default risks. The Rabb al-Māl bears the responsibility for losses that are discovered and above the Takāful fund's capacity, as long as these losses do not result from the Mudarib’s transgression (Taʿaddī), negligence (Taqṣīr), or violation of agreed-upon terms (Mukhalafah al-Shurut). Targeting entrepreneurs, rural communities, and other marginalised groups, the concept is especially helpful in advancing financial inclusion. It supports the Maqāṣid al-Sharīʿah (wealth preservation) and the (SDGs) of the UN, which include poverty reduction and economic advancement, by easing the debt load on borrowers and promoting sustainable development. It offers a workable, moral alternative to traditional microfinance methods by reducing dependency on interest-based loans and implementing risk-sharing systems. The model's capacity to tackle fundamental issues in microfinance, such as risk management, financial sustainability, and borrower debt levels, is demonstrated by the conceptual framework. It is advised that more research be done to evaluate its practical implementation, especially with regard to the Takāful fund pool's longevity and efficiency as well as the incorporation of FinTech, Waqf, and Zakāt innovations to increase its efficacy.