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Islamic Financing
Enter halal market
with confidence
through 100% Shariah-compliant financing
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No collateral required
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Fast capital injection
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No branch visit required
Key Benefits of our Islamic Financing Solutions
Support the growth
of socially responsible
and ethical finance
Facilitate businesses
on their journey towards
Halal-readiness
Funding Societies Islamic Financing is open to
- Sole proprietorship, partnership, limited liability partnership, a private limited company (non-subsidiary of a listed company) or unlisted public limited company registered with SSM
- Businesses whose core activities are listed as Shariah-compliant business activities as per Masryef Shariah Committee guideline
- Minimum 30% local shareholding by Malaysians
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Invoice Financing-i
Maximise Your Business Potential in the Halal Business World.
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A credit line from RM100,000 to
RM1 million -
Profit rate from 0.8% per month
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Tenure of up to 120 days
Business Term Financing-i
Scale up your halal business with no collateral required!
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Financing facility limit up to RM500,000
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Profit rate 1% per month
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Tenure of up to 18 months
Micro Financing-i
Small business financing made simple with a quick application
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Financing up to RM200,000
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Rates between 0.8% - 1.5%
per month -
Tenure up to 18 months
Shariah-compliant Islamic
Financing Solutions for
your Halal Business
No Collateral Financing
We focus on your business potential and want to help you grow.
No Hidden Fees
What you see is what you get. Aside from what is displayed, there are no other fees or charges.
Quick Application
We have an online application that saves you the hassle of having to leave the comfort of home, or work.
Flexible Repayment
Flexible repayment tenures to suit your business needs.
How SME Digital Financing Works?
An eligible business applies for business financing by submitting the necessary details.
Our credit and risk teams review each application objectively and fairly.
Our established investor network funds the business financing on the platform.
After funding, the funds get disbursed to the business immediately.
We've got you covered
Not what you’re looking for?
We have other financing solutions available to serve your needs.
Frequently asked questions
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Is Islamic financing meant for Muslim-based businesses only?
No, Islamic financing is not exclusive to Muslim-based businesses only. In fact, Islamic financing can be utilized by businesses of all faiths and backgrounds. The key features of Islamic financing is adherence to Islamic principles, which promotes ethical and socially responsible investments and avoiding interest-based transactions, speculation, and excessive risk-taking. As long as a business is willing to work within these guidelines, it can benefit from any Islamic financing solution.
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What are the main differences between Islamic and conventional financing?
The main differences between Islamic and conventional financing are:
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Riba: Islamic financing prohibits the payment or receipt of interest (riba), while conventional financing allows for the payment and receipt of interest.
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Profit and Risk Sharing: Islamic financing relies on profit-sharing arrangements, such as mudarabah and musharakah, where the financier and the customer share in the profits and risks of the investment.
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Underlying Assets: Islamic financing requires that transactions be backed by tangible assets, whereas conventional financing may be based on intangible assets or creditworthiness.
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Objective: Islamic financing aims to promote social justice and economic welfare by providing financing for socially responsible and ethical projects. This can include projects related to education, healthcare, and renewable energy, among others.
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What are the Shariah principles adopted for Funding Societies’ Shariah-compliant financing?
The Shariah principle used is Commodity Murabahah via Tawarruq arrangement. To put it simply, it involves a sale of an asset by a seller to a purchaser on a murabahah basis on cost-plus profit for a deferred payment.
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Who can apply for Funding Societies’ Shariah-compliant financing?
Any businesses whose principal activities are Shariah-compliant (e.g. not related to tobacco, liquor, gambling etc.) can apply for the financing.
Funding Societies will be conducting Shariah screening to ensure the funds raised are utilised for general working capital requirements and business purposes of the issuer which are Shariah compliant.
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Is it allowed to impose a fee on late or incomplete payments in Islamic business financing, and is it in accordance with Shariah principles?
Late Payment Charges which consist of Compensation (Ta’widh) and Penalty (Gharamah) is permissible to be charged subject to the following conditions:
For default payment before maturity date: Compensation (Ta’widh) may be imposed and shall not be more than 1% p.a. on the outstanding amount and shall not be compounded.
For default payment after maturity date: Compensation (Ta’widh) may be imposed and shall not be more than 1% p.a. on the outstanding balance (outstanding principal and accrued profit). Funding Societies may charge both Compensation (Ta’widh) and Penalty (Gharamah) as Late Payment Charges at a maximum rate of 10% p.a.. However, only the Compensation (Ta’widh) portion can be recognised as income and the rest shall be channeled to a charity body.
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How do I apply?
If this is your first time with us, here is a run-through on the application process.
Step 1: Complete the Application form on our page
Step 2: Submit all the documents required for this application
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Company Registration Forms
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Copy of all Director(s) NRIC/Passport
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Latest 6-months Bank Statement
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Latest Audited Accounts & Management Accounts (if available, not applicable to Micro Financing-i)
Step 3: Wait for your email confirmation for financing approval
Step 4: Accept our financing offer (If you’d like)
We will credit your money into a designated business bank account and begin your repayment cycle in the next following month.
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Are there any fees and charges?
Just like any other financing product, the following fees and charges will be applicable:
1. Micro Financing-i
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Drawdown Fee: 5% of the approved financing amount, deducted upon disbursement.
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Guarantee Fee: 5% of the approved financing amount, deducted upon disbursement.
2. Invoice Financing-i
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Facility fee: One-Off 1% of the limit of line facility
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Drawdown Fee: Up to 2% of financing amount per transaction based on tenure
3. Business Term Financing-i
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Origination Fee: 4% of the approved financing amount, deducted upon disbursement.
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What constitutes a Shariah-compliant business?
A Shariah-compliant business is one that operates in accordance with Islamic principles, which emphasize ethical and socially responsible practices that align with Islamic values. Specifically, a Shariah-compliant business should avoid engaging in activities that are prohibited by Shariah law, such as dealing with interest-based transactions, gambling, alcohol, and other prohibited activities. Additionally, Shariah-compliant businesses should prioritize fairness, transparency, and accountability in their operations and transactions.