Know What’s Behind the Success of Shariah Compliant Investment in Malaysia

1. Title: Know What’s Behind the Success of Shariah Compliant Investment in Malaysia Islamic financing is a great and well-defined way of investing money into small and medium-size businesses across Malaysia. Such an investment strictly from Islamic investors is done to improve the overall economy of the country. And, to make borrowers become self-sufficient to sustain for a long time and offer a real- time offering to customers. For the information, Islamic financing is governed by Shariah-Compliant investment rules in Malaysia introduced 30 years ago. At present, it has become a $2.5 trillion industry and accounts for $1.75 trillion or 70% of the total assets owned by Islamic investors and banks. Since governed by a convenient framework as per the Shariah-Compliant, investing money will be a successful affair based on the mentioned points. 1. No Interest Charged on Loan Riba or the interest charges as per the governed investment is completely forbidden. It means to say investors cannot ask for the interest charges from borrowers in return for lending money to them. Thus, Shariah-Compliant investment does not have an interest charge as the obligation to follow. In the midst of this, you must be thinking as to how Islamic investors make money after doing the investment. Well, they buy the underlying product like a car, personal assets or something and after that lease, re-sell it on installment to the client at a fixed price which is more than the original market value. So, in this way itself, they make money online by following the forbidden rule of Riba and still doing justice to borrowers to earn profit. 2. Sharing Partnership One of the governed rules of such Islamic investment is making a great profit when borrowers experience the same. It is one valid point to ensure long term success from our peer-to-peer funding in Malaysia. The term Musharakah, it is a form of partnership between Islamic lenders and the borrower to share an equal amount of profit. Also, the losses are shared in proportion with more on the lender’s side while following the rules and regulations. 3. Follow the Mudarabah It is an Islamic term under which there is a partnership which is called Rab-ul-Mal between the borrower and the Islamic investor. According to this, the investor provides the necessary capital which is called Mudarib to start or expand the existing business under which profits are shared equally and losses born by the investor only. Conclusion Invest your money wisely in profitable peer-to-peer lending as governed by the rules of Shariah- compliant investment. Simply prepare to earn a great deal of profit and success ahead after understanding the rules of investment.