March 2023 - Limra Assets

Compare SME Loans and Microfinance Schemes

By Nur SyafiqahBlog

Malaysian small enterprises can get money in two ways: through SME loans and microfinance schemes. Even though both try to help people get money, there are some differences between the two.

Once you have your business idea, securing the money to fund it can be tricky. With so many different business loans and funding schemes available in Malaysia, it’s hard to know where to start.

SME loans and microfinance programmes are used for different things and have varying eligibility conditions, loan amounts, repayment durations, interest rates, and ways to apply. Before choosing which choice to go with, business owners should carefully look at their financial demands and their eligibility.

SME Business Loans in Malaysia

SME loans are usually given by commercial banks or other financial organisations. They are made to help small and medium-sized businesses satisfy their financial demands. Compared to microfinance schemes, these loans usually offer higher loan amounts, longer time to pay back the loan, and cheaper interest rates. To get a SME loan, you often need collateral or an excellent credit score, and the application procedure can be longer.

The Malaysian government has also implemented multiple initiatives to help small and medium enterprises (SMEs) grow. From matching grant schemes to soft loans with low-interest rates, various financing options are available for businesses of all sizes.

Microfinance Programmes

Another great option for businesses in Malaysia is the microfinance loan. Microfinance loans are small, unsecured loans typically given to entrepreneurs with low incomes. They are made for smaller firms or people who might not be able to get standard loans.

These loans can be used for a variety of purposes, such as working capital, business expansion, or even to purchase new equipment.

Most of the time, these programmes are run by non-profits or government agencies. They give smaller loan amounts, shorter time periods to pay them back, and higher interest rates than SME loans. Most microfinance programmes do not require collateral and have less strict rules about who can get them.

One of the best things about microfinance loans is that they have a very low-interest rate. In fact, the average microfinance loan in Malaysia has an interest rate of just 6.5%! This makes them a great option for businesses that are looking to save on their financing costs.

Conclusion

Whether you’re looking for an SME loan or a microfinance loan, there are a variety of financing options available for businesses in Malaysia. The best way to find the right loan for your business is to compare rates and terms from multiple lenders. Be sure to review your financial projections before applying so you can be sure you’re getting the best deal possible.

About Limra Assets

Limra Assets is a Shariah-compliant financing solutions financier that provides loans for property financing, SME businesses loans and gold investment. We offer a range of financing options to help individuals and businesses, including alternative financing for businesses that are unable to obtain funds. Our goal is to provide access to funds for investments in a Shariah-compliant manner that focuses on transparency, customer service, and competitive rates, Limra Assets can be a valuable partner in your gold investment journey.

If you’re interested in learning more about Limra Assets and our Shariah-compliant financing solutions for property purchases, gold purchases or business loans, please contact us for more information.

Disclaimer:

It is important to note that taking out a loans for any purchases and gold investment, whether through Limra Assets or any other lender, carries risks and should be approached with caution. It is important to carefully consider your financial situation and investment goals before taking out a loans, and to ensure that you fully understand the terms and conditions. Additionally, investing in gold carries its own risks and should be done with the guidance of a financial professional. This information and all external links are provided for educational purposes only and should not be considered financial advice.

March 31, 2023

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How Does Islamic Property Financing Work?

By Nur SyafiqahBlog

Islamic property financing, also known as Shariah-compliant property financing, is a form of financing that adheres to the principles of Islamic law (Shariah). Islamic property financing operates on the basis of shared risk and reward, and prohibits the payment or receipt of interest (riba).

Here’s how Islamic property financing works:

Ownership: In Islamic property financing the bank and the borrower both own the property jointly. The borrower is entitled to use the property for a specified period of time, while the bank owns the remaining portion of the property.
Profit and Loss Sharing: Instead of charging interest on the loan, the bank and the borrower share in the profit and loss associated with the property. For example, if the borrower rents out the property, the bank and the borrower would share in the rental income based on their ownership stake in the property.
Payment: The borrower makes periodic payments to the bank, which represent a portion of the rent or revenue generated by the property. These payments are structured so that the bank receives a return on its investment, but does not charge interest.
Repayment: At the end of the financing period, the bank transfers its share of ownership in the property to the borrower. This transfer is usually done through a gradual process, with the borrower gradually purchasing the bank’s share over time.

Islamic property financing can be a complex process and requires both the bank and the borrower to adhere to strict guidelines and principles.

However, for those who are interested in Shariah-compliant financing, Islamic property financing can provide an alternative to traditional forms of financing that may not align with their beliefs or values.

About Limra Assets

Limra Assets is a Shariah-compliant financing solutions financier that provides loans for property financing, SME businesses loans and gold investment. We offer a range of financing options to help individuals and businesses, including alternative financing for businesses that are unable to obtain funds. Our goal is to provide access to funds for investments in a Shariah-compliant manner that focuses on transparency, customer service, and competitive rates, Limra Assets can be a valuable partner in your gold investment journey.

If you’re interested in learning more about Limra Assets and our Shariah-compliant financing solutions for property purchases, gold purchases or business loans, please contact us for more information.

Disclaimer:

It is important to note that taking out a loans for any purchases and gold investment, whether through Limra Assets or any other lender, carries risks and should be approached with caution. It is important to carefully consider your financial situation and investment goals before taking out a loans, and to ensure that you fully understand the terms and conditions. Additionally, investing in gold carries its own risks and should be done with the guidance of a financial professional. This information and all external links are provided for educational purposes only and should not be considered financial advice.

March 31, 2023

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islamic financing solution with syariah compliant in financing

What Does Shariah Compliant Financing Mean?

By Nur SyafiqahBlog

Shariah compliant finance means that a financial transaction or product is in line with Islamic law. (Shariah). Shariah is the moral, ethical, and legal rule that tells Muslims how to act in all parts of their lives, including commerce and money.

Shariah-compliant financing is based on the idea that risk and reward are shared, and it is forbidden to pay or receive interest. (Riba).

Shariah-compliant financing structures, on the other hand, are meant to give investors and borrowers a fair return on their money while also following the rules of ethical and socially responsible investing.

Some common methods of funding that follow Shariah law are:

Mudarabah:

Mudarabah is a type of cooperation where one partner puts up the money (called “rab al-maal”) and the other puts in the work. (known as the “mudarib”). The rab al-maal gives the money to start a business, while the mudarib runs the business on a daily basis. Profits are split between the partners in a way that has already been decided, while losses are always paid for by the rab al-maal.

Murabahah:

Murabahah is a type of cost-plus financing in which the bank buys an asset for the borrower and then sells it back to the borrower at a higher price. This markup shows how much money the bank made from the transaction. The borrower pays the bank back over time in installments that add up to the initial cost of the item plus the markup.

Musharakah:

Musharakah is a type of business partnership in which two or more people put money into a firm together. Profits and losses are split between the people involved based on how much they own of the business. This sort of funding is commonly utilised for big projects that need a lot of money.

Sukuk:

Sukuk is Shariah-compliant bonds that provide investors with a part of the income made by the asset they are investing in instead of interest payments. The income made by the asset is split among the investors based on how much of the Sukuk they own. Large infrastructure projects including toll highways, airports, and power plants are commonly financed with Sukuk.

Overall, Shariah-compliant financing is designed to provide investors and borrowers with a socially responsible and ethical alternative to traditional forms of financing. These financing structures are based on shared risk and reward, and are designed to promote long-term sustainability and ethical investing practices. You can learn more about the advantages of Shariah Complaint Financing here.

Learn More About Islamic Shariah Compliant Financing

About Limra Assets

Limra Assets is a Shariah-compliant financing solutions financier that provides loans for property financing, SME businesses loans and gold investment. We offer a range of financing options to help individuals and businesses, including alternative financing for businesses that are unable to obtain funds. Our goal is to provide access to funds for investments in a Shariah-compliant manner that focuses on transparency, customer service, and competitive rates, Limra Assets can be a valuable partner in your gold investment journey.

If you’re interested in learning more about Limra Assets and our Shariah-compliant financing solutions for property purchases, gold purchases or business loans, please contact us for more information.

Disclaimer:

It is important to note that taking out a loans for any purchases and gold investment, whether through Limra Assets or any other lender, carries risks and should be approached with caution. It is important to carefully consider your financial situation and investment goals before taking out a loans, and to ensure that you fully understand the terms and conditions. Additionally, investing in gold carries its own risks and should be done with the guidance of a financial professional. This information and all external links are provided for educational purposes only and should not be considered financial advice.

March 30, 2023

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