A sharia compliant peer-to-peer lending platform. Coming soon.
Sharia compliant commodity based peer to peer lending platform
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Financing for Muslims is desperately difficult to find. An estimated 2.78 million UK Muslims are unable to benefit from the increasingly popular peer-to-peer lending market, and many Muslim businesses, 13,400 of them in London alone, are unable to access conventional financing as it would jeopardise their beliefs and values.
We intend to open up the lending market for Muslims by allowing borrowers to secure Sharia compliant financing directly from their peers for the first time in the UK. Peer to Peer lending dramatically reduces the cost, complexity and time often associated with conventional finance methods for borrowers, whilst at the same time dramatically increasing the returns on investment for lenders in comparison to traditional financing and saving models. All without compromising the beliefs and values of faith.
Our online Sharia compliant peer to peer platform will directly connect creditworthy businesses (the borrowers) looking for funding with investors (the lenders) looking to support their growth.
We will process this request, for a small fee through a Commodity Murabaha (cost plus profit) agreement, where rather than giving the borrower money at a profit (interest), they are sold commodities at an agreed profit rate and differed payment term. The borrower than sells the commodities in the open market to monetise.
Commodity Murabaha Financing Process
Borrower issues a promise to purchase for commodities.
Lender issues a purchase offer which the commodity supplier accepts and ownership of the commodities are transferred to lender.
Lender issue a Murabaha which the borrower accepts and ownership of the commodities are transferred from the lender to the borrower.
Borrower sells commodities in the open market to monetise the value of the commodities.