Jenina Ibañez · · 1 min readFunding Societies launches Shariah-compliant financing products
Funding Societies, a digital financing company headquartered in Singapore, is launching new Shariah-compliant trade financing products for MSMEs in Malaysia.
The financing solutions are based on Commodity Murabahah (Tawarruq), or the practice of buying commodities with deferred prices before selling to a third party.
Wong Kah Meng, co-founder and CEO of Funding Societies Malaysia / Photo Credit: Funding Societies
The zero-collateral financing is available for Malaysian MSMEs that have been operating for at least a year. Funding Societies offers a credit line of up to 1 million ringgit (US$228,000).
The Islamic fintech (iFinTech) solutions have no hidden fees and can be repaid through flexible options, the company website said. Businesses that are Shariah-compliant – or those that do not primarily work in the tobacco, liquor, or gambling sectors – can apply.
The fintech company partnered with Masryef Advisory for guidance on Shariah principles.
These financing products are aimed at benefiting both Muslim and non-Muslim investors and will give underserved MSMEs more access to Islamic financing, says Khairil Anuar Mohd Noor, principal at Masryef Advisory.
See also: Are Malaysia’s startup efforts finally paying off?
Currency converted from Malaysian Ringgit to US Dollar: US$1 = 4.39 ringgit
Editing by Miguel Cordon and Jaclyn Tiu
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