Funding
Register your business project and get Shari'a-compliant funding
Investment Agreement Schemes
Compare the different investment schemes and understand why Zeed uses Shari'a-compliant schemes.
Conventional Investment Scheme
Loan-Based Contract
In conventional investment based on loans, investors provide business capital to Business Entities (BEs) using a qardh contract, which is a loan contract in Islamic law. This qardh contract is an agreement where investors lend a certain amount of funds to BEs with the obligation to repay the principal loan at a specified time.
Loan Repayment With Interest
Then after the business is completed, the BE returns the loan funds along with interest that was agreed upon initially.
Interest on this loan is Riba
Interest on this loan is referred to as Riba, which is an additional value that must be paid by the borrower to the lender beyond the principal loan amount. In Islamic perspective, Riba is considered a prohibited and forbidden practice because it causes injustice and exploitation against the borrower.
Syirkah Mudhorobah Scheme
Partnership-Based Contract
In the syirkah mudhorobah scheme, the contract used is not a loan contract, but a syirkah (partnership) contract. Mudhorobah is a form of cooperation between two or more parties where investors (shahibul mal) provide some capital to the BE (mudhorib) to be managed in a business.
Profit Sharing
After the business is completed, profits will be shared according to the initial agreement (for example, 40% investor, 60% manager).
Risk and Loss
If a loss occurs, the cause of the loss will be examined. If the loss is the fault of the business manager, then the business manager must bear that loss. However, if the loss is caused by natural factors outside the business manager's control, then the capital owner must be prepared to bear it.