A Call to the Faithful
The How
Ijarah
A finance company buys an asset and leases it out to users for a fee. The asset must be used by Shariah compliant companies and both parties should know what it is being used for.
Musharaka
A finance company and the customer buy an asset in joint ownership. The periodical payment from the customer goes towards increasing his equity in the asset until he gains complete ownership. The company makes money from the profits as long is it owns part of the asset.
Murabha
A finance company buys an asset and sells it to a user at a profit. The ownership is transferred to the user who pays back the amount in installments. The rate of return is fixed in advance and is for the time value of the money.
Takaful
Takaful is a communal insurance where liabilities are shared by the community.
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