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SME Bank is a government-owned bank that provides financing solutions for small and medium-sized enterprises (SMEs) in Malaysia. The bank offers various financing schemes, including working capital financing, trade financing, and project financing.

SME is an acronym for small and medium-sized enterprises. In Malaysia, an SME is defined as a company with full-time employees not exceeding 200 and with paid-up capital below RM50 million or annual sales turnover not exceeding RM250 million.

The SME Development Division of the Ministry of International Trade and Industry (MITI) is responsible for formulating and coordinating policies and initiatives to develop SMEs, In Malaysia. 

In order to qualify as an SME, your business needs two things: sales turnover and the number of full-time employees.

This will depend on what sector you are in economically; there are different criteria for each one!

Islamic personal loans are a type of financing that is based on the principles of Shariah, or Islamic law. These loans are sometimes referred to as Shariah-compliant, Muslim, or halal loans.

Shariah prohibits the charging of interest, or riba, on loans. As a result, Islamic personal loans typically involve a fee for service rather than interest. This fee is often calculated as a percentage of the total loan amount and is paid upfront.

In addition to not charging interest, Shariah-compliant loans also typically prohibit other activities considered harmful, such as gambling, speculation, and deceit.

The word shariah simply means the way. In reference to Islam, shariah is not a set of fixed rules but serves as an overarching concept that helps Muslims better understand how God wants them to live their lives. Shariah law is a moral guide developed over centuries of study and debate by Muslim scholars. There are numerous interpretations of shariah, but they all center around similar themes such as compassion, fairness, and honesty.

Five key principles make up shariah law:

1. Tawhid: The belief in the oneness of God
2. Uluhiyyah: The worship of God
3. Risalah: The belief in the prophets of Islam
4. Adl: The principle of justice
5. Ihsan: The idea of doing good for the sake of God

These principles are reflected in the way Islamic finance works. For example, tawhid is the basis for the prohibition of Riba, which will be discussed later. The principle of adl dictates that all contracts must be fair and just, while ihsan reminds Muslims that they should always strive to do good deeds.

The earliest origins of commercial transactions date back to the time of the Prophet Muhammad in the 7th century. Trade was conducted through barter, or the exchange of goods and services until the concept of currency developed. The first Muslim currency was introduced in AH 77 (696–697 CE), after the Prophet’s death, and was called the dinar. It was made of gold and silver and was equal to 4.3 grams of gold or 23 grams of silver.

According to the Quran, Allah has given humans the power to earn and own property. The act of earning money is considered a gift from God that should be used wisely and in accordance with His laws. Money should not be hoarded; rather, it should circulate for the good of society. Furthermore, money should not be used to exploit others or to gain an unfair advantage.

Islamic laws, or Sharia, were gradually codified beginning in the 8th century. While there are many interpretations of Sharia, the Quran and Sunnah (or traditions) of the Prophet Muhammad are the primary sources. The four Sunni schools of jurisprudence, Hanafi, Maliki, Shafi’i, and Hanbali, as well as the Shia school, all provide rulings on economic transactions

Here are the steps you should take in order to plan your business loan:

Before we get into the advantages of Islamic property financing, it is important to understand how it works. In traditional mortgages, the lender loans the borrower a sum of money and charges interest on that loan.

With an Islamic mortgage, the bank does not charge interest. Instead, they enter into a partnership with the borrower where they share in the profits or losses of the property. This means that if the property increases in value, the bank will make a profit. If the property decreases in value, the bank will lose money.