e-Cooperative
e-Cooperative
This is a cost-plus financing product whereby Samaha purchases the item and resell it to the member with mark-up. The member can serve as an agent of Samaha by identifying exactly the product he wants acquire through a reputable vendor, while the cooperative society purchases directly once validation process is completed. The cost and profit margin will be disclosed to the member. The agent or member usually forfeits his/her agency fee.
Service Ijarah (also known as Ijarah al-Khadamat) is an Islamic financing arrangement where
Samaha leases services to a customer with the following flow:
1. Service Procurement: The bank procures the required service from a service
provider.
2. Lease Agreement: The Samaha then leases the service to the customer under a
contractual
agreement.
3. Payment Terms: The customer pays for the service over a specified period,
often in
installments.
4. Profit Margin: The bank charges a rental fee (ujrah) for the service, with
the difference
between the spot rental and the forward rental representing the profit margin.
Service Ijarah can be used for various needs, such as education, healthcare, travel such as
Hajj and Umrah, and other personal expenses. It's a flexible and Sharia-compliant way to
finance services without involving interest (Riba).
A benevolent loan, also known as Qard al-Hassan is an interest-free loan provided for welfare purposes. It is a form of social service in Islamic finance where the lender does not charge any interest, and the borrower is only required to repay the principal amount. This particular product is mainly for an emergency situation in the society.
Musharaka refers to a partnership where Samaha and a member(s) contribute capital to a business venture and share the profits and losses according to an agreed ratio. In musharaka, profits are distributed according to the agreed-upon ratio, while losses are shared in proportion to each partner's capital contribution.
Diminishing Musharaka (also known as Declining Musharaka or Shirkat al-Mutanaqisah) is a partnership arrangement where one partner gradually buys out the other partner's share until they become the sole owner of the asset.