How it works

Step 1: Application Submission

The process begins with you submitting an application tailored to your needs.

• Choose the type of financing you require: personal, business, or asset-backed.

• Provide details about your intended use for the funds or asset.

• Submit necessary documentation (e.g., identification, income proof, or business details).

Step 2: Shariah Compliance Screening

Once your application is received, it is reviewed by our expert Shariah Advisory Team to ensure compliance with Islamic finance principles.

• No Interest (Riba): All transactions are structured to avoid interest.

• Ethical Purpose: Financing must be for permissible (halal) purposes.

• Transparency: Terms, conditions, and fees are clear and fair.

Our scholars oversee the process to ensure every agreement aligns with Islamic law.

Step 3: Structuring Your Financing

Content:
We structure each transaction using appropriate Shariah-compliant contracts based on your specific financing needs. Below are the models we use:

1. Murabaha (Cost-Plus Financing)

• Suitable for asset-backed financing (e.g., vehicles, equipment).

• How It Works:

  • La Riba Finance purchases the item (e.g., car, machinery) on your behalf.

  • We sell the item to you at an agreed markup.

  • You repay the amount in fixed installments, free of interest.

2. Musharakah (Partnership)

• Ideal for business financing or joint ventures.

• How It Works:

  • We partner with you by investing funds in your business.

  • Profits are shared based on an agreed ratio.

  • Losses are shared based on the proportion of invested capital.

3. Mudarabah (Profit-Sharing)

• Used for business financing where you provide expertise, and we provide capital.

• How It Works:

  • You act as the entrepreneur, and we act as the financier.

  • Profits are shared as per the agreed ratio.

  • Losses are borne solely by us unless caused by negligence or breach of agreement.

4. Ijarah (Islamic Leasing)

• Suitable for asset-backed financing (e.g., vehicles, property).

• How It Works:

  • We purchase the asset and lease it to you for a fixed period.

  • You pay agreed-upon rental amounts.

  • Ownership can be transferred to you at the end of the lease period, if agreed.

5. Tawarruq (Commodity-Based Financing)

• Used for personal loans to provide cash ethically.

• How It Works:

  • La Riba Finance buys a commodity on your behalf and sells it to you at a higher deferred price.

  • You sell the commodity to a third party for immediate cash.

  • This structure allows you to access funds without interest, complying with Shariah principles.

Step 4: Agreement Signing

Once the structure is finalized, we provide a clear and transparent agreement:

• The agreement outlines the financing terms, repayment plan, and all conditions.

• We ensure you understand every aspect before proceeding.

Step 5: Disbursement or Asset Delivery

After the agreement is signed:

• For Asset Financing: The asset is delivered to you, ready for use.

• For Personal Loans: Funds are made available through the Tawarruq process.

• For Business Financing: Capital is invested or disbursed as per the Musharakah or Mudarabah agreement.

Step 6: Ethical Repayment

Repayments are structured to be affordable, fair, and ethical:

• Fixed installment plans for Murabaha and Ijarah agreements.

• Profit-sharing mechanisms for Musharakah and Mudarabah agreements.

• Transparent terms with no hidden fees or interest charges.

Our Shariah Compliance Commitment

Ensuring Compliance with Islamic Principles

At La Riba Finance, we work closely with our Shariah Advisory Board to ensure every transaction meets the following principles:

• Prohibition of riba (interest).

• No gharar (excessive uncertainty) or unethical practices.

• Adherence to Islamic contracts, fostering fairness and trust.

Every product and process is audited and reviewed regularly to maintain the highest standards of compliance.

Why Choose La Riba Finance?

• 100% Shariah-compliant financing tailored to your needs.

• Transparent processes with no hidden charges.

• Expert oversight by our Shariah Advisory Board.

• Ethical financing that supports your goals without compromising your faith.

Customer reviews

Discover what our clients think about our service

The loan process was so simple and quick! I got the funds I needed without any hassle. Highly recommended!

Amina K.

Excellent customer service and very transparent about the terms. I appreciate how they made everything easy to understand.

Yusuf R.

★★★★★

★★★★★

Get in touch

Share with visitors how they can contact you and encourage them to ask any questions they may have.

Phone

+27 64 77 77 777

Email

info@laribafinance.com