Get To Know More About The Types Of Islamic Financing – Sharia financing can be one solution to solve your financial problems with sharia principles. Generally, this type of financing is provided by Islamic banks, but nowadays you can find many non-bank institutions that provide this financing.
This type of financing uses sharia principles in the way it works and is managed. It is divided into 3 types of financing, including sharia working capital Financing, sharia investment financing, and sharia consumer financing. All three have different goals and ways of working. To understand more about financing based on sharia principles, see the explanation below.
Types Of Sharia Working Capital Financing
Sharia working capital financing is intended for entrepreneurs who need funds for their working or business capital. Of course, the recipient of this financing is an entrepreneur who has a business or company that has prospects and does not violate Islamic sharia and applicable laws and regulations.
This type of financing is still further divided into two based on the scheme, namely the sale and purchase scheme and the cooperation scheme. The contract used and the method of payment is certainly different, the following is an explanation.
Buy And Sell Scheme
For sharia working capital financing with a sale and purchase scheme, the contract used is the Murabaha contract. Where the bank will finance the purchase of working capital needs for you. This scheme is given if the needs of entrepreneurs tend to purchase material needs. At the beginning of the agreement, the yield to be received by the bank has been determined based on mutual agreement. The yield is the cost of goods plus the margin.
This scheme is also known as a profit-sharing scheme or mudharabah and musharaka. Financing is based on the desire of both parties to cooperate. So that the contract agreement has written a profit-sharing scheme that has been mutually agreed upon. The payment scheme includes principal returns plus profit sharing for Islamic banks.
Types Of Sharia Investment Financing
Sharia investment financing is channeled to purchase capital goods to build new businesses. This financing can be short-term or long-term. Not only to build new businesses, but this type of sharia financing is also channeled to entrepreneurs who need capital for project relocation, expansion, and replacement of factory machines. There are two contracts used, namely the Murabaha contract and the ijarah vomiting bit talk contract.
Types Of Sharia Consumptive Financing
Sharia consumptive financing is intended for individuals outside of businesses which are usually for consumptive purposes. This financing is usually required to meet secondary needs. Sharia consumer financing uses two types of contract systems, namely murabahah contracts and ijarah contracts.
Sale and purchase contracts in Islamic consumer financing are among the most frequently used and the most important. The contract agreement with the Murabaha contract system is considered easier to calculate. Where the payment scheme is in the form of cost of goods plus a margin.
Sharia consumer financing with ijarah contracts is usually used to finance services. Even so, the concept is similar to the buying and selling system, only with the object in the form of services. Examples of sharia consumer financing with this ijarah contract include Umrah travel package services. The payment scheme is in the form of a principal return plus an umrah or fee.