How Shariah Compliant Investment is Helping Small Businesses to Thrive?

1. Title: How Shariah Compliant Investment is Helping Small Businesses to Thrive? The Malaysian region has got more hold of the Islamic-driven people in great numbers apart from individuals belonging to different regions. From the economical point of view, small to medium scale businesses are the backbone of the country that help enhance the funds, growth, and development. Especially for small scale enterprises to thrive ahead, Shariah-compliant business financing in Malaysia is the best way to raise funds trustfully. Moreover, it helps the economy to grow more by aiding individual borrowers in a truthful manner. So, if you are thinking to invest some money into the driving economy of the country, then you have the best resource available in the form of Islamic lending. But first of all, you need to understand what is it, how does it work, and what is forbidden in it. Know the Basics of Islamic Financial Loan Facility in Malaysia As per the Islamic funding option in Malaysia which is fully governed by Shariah-compliant principles, it is a matter of clear consciousness to help the individuals need of money. It follows the principles of fiscally helping without any profit motive which is considered as harmful (Haram) or risky for the users. It means to say that, the investors like you cannot call for Riba as the rate of interest against the loan for business investment in Malaysia offered to individual borrowers. You are not even allowed to charge the loan fee which is a common practice in a standard-driven business loan offer. In short, as a true Islamic individual living in Malaysia and looking for some investment for the betterment of the country’s economy, you can abide by such rules to help the poor. Things that are Forbidden Now, you know the purpose of funding people in Malaysia as per the governing rules of Shariah- compliant. Next to know is the forbidden things against which the loan amount should not be used. * Tobacco * Gambling * Alcohol * Pork * Entertainment activities like music, cinema, etc. * Pornography * Arm sales Common Practices of Islamic Driven Business Loan Facility

2. * Musharaka: It is the form of profit and loss sharing rules under this particular loan facility. According to this rule, profit and loss will be equally shared among the lender and the borrower. * Ijara: It permits the financial institution to earn a profit by charging rentals. * Murabaha: It is an agreement in which an asset is sold for cost plus profit. Conclusion Follow the path of goodness by helping small businesses and the economy of Malaysia thrive high with an Islamic form of the lending option.