‫بسم هللا الرحمن الرحيم‬

Shari’ah Financing
A Presentation by Norfaisah Abolais
ASA PHILIPPINES FOUNDATION, INC.
Drafting of circulars
Updating and yearly publishing of Operational
Guidebook
Organizing Trainings
Promotional Exam for ABM, AAA, ARA & DD
Conference hall & its equipment
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OFFICIAL ACCOUNT FOR STAFF
DIRECTOR | HUMAN RESOURCES
MS. FAISAH CACASI MOHD SHARIEF
KENNETH REY B. PLASTICO
Regional Administrator
0925-7310-123

LEONILYN P. MALABAG (00204)

Regional Administrator
0932-847-5117

RHEA RETES
Regional Administrator
0932-853-6025
RONNIEL A. JAVIER
Acting Branch Manager
Under the supervision of Ms. Malabag

JESTHONY L. JAMO
Branch Manager
0925-832-0795

DARWIN D. SABADO
Branch Manager
0932-847-5121
Manay, April Mawili
Area Administrator
+639253042791

JHENIE GRACE L. BINONDO

Branch Manager
0925-802-8599

NORFAISAH ABOLAIS
Acting Area Administrator
Shari’ah Financing Implementer
0933-862-8896
 Shari’ah Financing
‘’ShariFin’’
• KEY POINTS
is banking TO REMEMBER:
or financing activity that complies
with sharia (Islamic law) and its practical application through
HALAL - Shari’ahofstandard
the development Islamic economics.

• Sharia – is the body of Islamic Law

Ethics of the Shari’ah Law originate from:

 The Holy Quran

HARAM - forbidden by Islamic Law
 Sunnah (the sayings, deeds and endorsements of Prophet
Muhammad PBUH)

ADMINISTRATIVE ORDER NO. 1036-18

 SHARI`AH COMPLIANCE: MAIN PRINCIPLES

CONTRACTS

Lawful
Mutual Avoid
Contractual
Consent
Objective

Interest Uncertainty Gambling Other prohibitions

(riba) (gharar) (maysir/qimar) e.g. Liquor, pork
 Products that
exchangeable
for money

Products
Products are
are not
traded in the
open market prohibited
Shari’ah in Islam
Compliant
Products

Products Products are

that are not traded
free from under
Riba threats
10
PRODUCTS WE OFFER:

1. Murabaha
2. Ijarah/Subsidiary Financing
3. Qard Hassan
 1. Murabaha

Nanay ASA Philippines

Shari’ah Financing
‘’Murabaha’’
As of December 31, 2018
 Murabaha

• The Murabaha can be denoted as “Sale Product With Profit”.

• Is the most popular and most common mode of Islamic financing.

It is also known as Mark-up or Cost-plus financing. It is used if
one (a client) wishes to purchase equipment or goods instead of
availing loaned COST
money PLUS
from anvs.
institution
INTEREST like ours.
• Our Nanays will buy the items on behalf of ASA.
• Regular Loan Transaction
Cost plus - charging fixed profit on sale of goods
• 23/46 EWP
Interest- money paid at for the use of money lent
Murabaha

Step by step Murabaha financing

1. Client and ASA PHILIPPINES sign an agreement to enter into

Murabaha.

ASA Philippines Nanay

Agreement to
Murabaha
FINANCING AGREEMENT FORM
“FAF”

10000 11500

10,000
Murabaha

Step by step Murabaha financing

2. Client appointed as agent to purchase goods on
foundation’s behalf.

ASA Philippines Nanay

ASA PHIL.
Agreement to
Murabaha
Agency
Agreement
 10,000

10,000

1 Sack Sinandoming = 2,500

1 sack B-10 = 2,500
1 Sack Young Master = 2,500
1 Sack NFA = 2,500
P 2500 x 4 =10,000

Delegation of Authority to purchase goods DAPG

 Murabaha

Step by step Murabaha financing

3. ASA disburse money to client for purchase of goods.

ASA Philippines Nanay

Islamic
Bank
Agreement to
Murabaha

Agency
Agreement

Disbursement to the client

 Declaration of Purchase DOP

Date of Loan
Disburse
AMOUNT OF
LOAN WITH
COST PLUS

11500
10-0001 OCT. 22, 2018 10-0010

PN no. of FAF
DAPG NO.

I sack of rice 2800

LIST OF BOUGHT I sack of rice 2800
GOODS, LABOR I sack of rice 2800
AND FARE COST I sack of rice 2800
FARE COST 200 AMOUNT OF
LABOR 100 LOAN WITH
COST PLUS
RESELL
AMOUNT OF
11500
GOODS
OCT. 29, 2018
Date of Return (one week
after release)
Murabaha

Step by step Murabaha financing

4. Client purchases goods on ASA’s behalf and takes

their possession.

Nanay

4 Sacks of Rice
P 2500 Each x 4
= P 10,000
 Murabaha
Step by step Murabaha financing

5. Client makes an offer to purchase the goods from

the foundation and ASA accepts the offer .

ASA Philippines Accept the

offer Nanay

Offer to purchase
 Murabaha

Step by step Murabaha financing

6. The Foundation sells the Asset(s) to client on

cost plus basis and transfers ownership.
.
ASA Philippines Nanay

Murabaha Agreement
+
Transfer of Title
1 2 3 4 = P 10,000
+ 1,500

= P 11,500

Total Loan :
10,000 + 1500 cost plus
 Murabaha
Step by step Murabaha financing

7. Client pays agreed price to ASA according to an agreed

schedule 23 Equal Weekly Payment or 6 months/ 46 Equal
Weekly Payment or 1 year.

ASA Philippines Nanay

Payment of Price
 DOP

Nanay

ASA PHIL. PURCHASE OF

GOODS
FAF and DAPG

PAYMENT
ASA Philippines Nanay
2. Ijarah

Application for asset on Ijarah basis

Agreement to Ijarah

Client and ASA purchases goods.

Payable for 1 year or 46 weeks

ASSET IS UNDER THE NAME OF FOUNDATION

 Shari’ah Financing
‘’Qard Hassan’’

# of Persons Amount Disbursed

Year 2018 1,403 13,355,000
Prior Years (Since 2009) 46,259 162,541,500
TOTAL 47,662 175,896,500
We don’t buy things by ourselves
for our clients for the following
reasons:

 Satisfaction of our clients

 We may not be able to do it efficiently
for all of our clients.
What Our Branches Must Do:

1. Post a tarpaulin that states:

“This Branch is implementing Shari’ah Financing.’’

2. Conduct an orientation to all groups

with existing active Muslims clients.
3. Conduct an orientation to all prospect
Muslim clients.
4. Carefully use the three – set forms for
Shari’ah Financing.
1.

’
What Our Branches Must Do:

1. Post a tarpaulin that states:

“This Branch is implementing Shari’ah Financing.’’

2. Conduct an orientation to all groups

with existing active Muslims clients.
3. Conduct an orientation to all prospect
Muslim clients.
4. Carefully use the three – set forms for
Sharia’h Financing.
4. SET FORMS FOR SHARI’AH FINANCING

Disbursement of Loan
During fill out of form
Return 1 Week after Release
Under custody of Nanay and return during HBV
Thank you and Wassalam.

Prepared by:
Norfaisah Abolais
Shari’ah Financing Implementer
Acting Area Administrator
Training Research and External Affairs Department
0933-862-8896