The first Shariah-compliant digital financing solutions for community credit
KUALA LUMPUR, 22 FEBRUARY 2021 - Sedania As Salam Capital Sdn Bhd (SASC) has launched the GoHalal Financing Program, a platform which seeks to offer Shariah-compliant financing that would enable an Islamic Financing environment by equipping the community credit companies (or “licensed moneylenders”) with necessary procedures and required tools for their financial offerings.
Targeted to serve as a holistic platform for licensed moneylenders to tap into the broader Islamic market, it was the first-of-its-kind to be offered to community credit companies registered with the Ministry of Housing and Local Government’s (KPKT).
The GoHalal Financing Program is multifaceted that comes with a set of components including Shariah certification process and advisory on Shariah-compliant documents, ready-to-use Tawarruq platform that provides real-time 24/7 trading of digital commodities, digital agreements using automated digital Akad, secured direct debit e-mandate, takaful protection, digital marketing services and a financial marketplace.
CEO Nisa Ismail says the program will meet the rising demands for Shariah financing options and help ease the cash flow of those affected by the virus outbreak. Moody recently revealed that Malaysia remains a major market for Islamic finance in Southeast Asia with 35.6% (as of end-June 2020) of the industry’s market share total financing (excluding DFIs).
According to Nisa, micro-businesses and informal workers, segments remain underserved due to their high-risk nature. “With the extension of the movement control order (MCO), these people do not have the financial muscle to absorb financial impacts caused by the lockdown. We hope the program can help address that.”
For community credit companies, the GoHalal Financing Program is set to address their long-standing pain points.
The ability of the GoHalal Financing Program to supplement the financing with takaful protection covering death and TPD, featured with automated direct debit e-mandates benefits the community credit companies to mitigate the risk of non-performing loans through structured repayment commitment with payment instructions linked to the borrower’s bank account upon receiving their approvals.
Nisa further explains, “We want to foster a safe lending environment and increase the online lending trustworthiness through innovative digital technology.”
The GoHalal Financing Program presents opportunities to both the community credit companies and prospective borrowers seeking alternative funding to match their financing needs. To put this into effect, credit community companies are required to sign up with the GoHalal Financing Program through SASC. For more information, visit here.
This article was also mentioned in The Borneo Post. To read more, click here.