Shari'ah means a way or path. In Islam, Shari'ah refers to the divine guidance & laws as given by the Holy Quran, the Hadith (sayings) and the Sunnah of the Prophet Muhammad (Peace Be Upon Him).

What are the main principles of Islamic Finance?

• Islamic Commercial Laws.
• The Prohibition of Riba which is the taking or receiving of interest.
• Linked to real Asset.
• The prohibition of speculative behavior (Gharar), which means that gambling (Maysir) and extreme uncertainty is prohibited and consequently, contractual obligations and disclosure of information are central obligations to financial business transactions

Momentum sahih has not only developed Shari’ah-compliant logbook financing but it has adopted an end to end Shari’ah process. The shariah logbook financing processes are approved and certified by the Momentum sahih independent Shari’ah Supervisory Board comprising of eminent scholars in the field of Islamic finance:

• Sheikh Khalfan Abdallah.
• Sheikh Ali Mahmoud.
• Professor Mohammed Salim Badamana.

Conventional financial institutions can sell Shari’ah-compliant products because Islamic law does not require that the seller of the product be Muslim or that its other services also be Islamic. It does require that the product or service be in compliance with Shari’ah guidelines.

Islamic finance is an interest free finance system. It is asset based as opposed to currency based. A deal is structured on exchange or ownership of assets and money is simply the payment mechanism to effect the transaction. The basic framework of Islamic finance is based on elements of Shari'ah, which governs Islamic societies. The major difference between Islamic finance and conventional finance is that Islam teaches us that money itself has no intrinsic value and forbids people from profiting by lending the money without accepting any level of risk.

Riba literally means increase, addition, expansion or growth. It is however, not every increase or growth which has been prohibited by Islam. In Shari'ah, Riba technically refers to the premium that must be paid on a financial transaction without any consideration.

No. We participate in the risk of transaction and accordingly earn profit. Interest is fixed and does not require participation in risk. The fact that the profits we make through trade and share with customers are similar to interest rates is because we operate in a conventional economic environment. The safest and best way for you to judge is to check the value of what you would receive from conventional financial institutions. We make every effort to remain competitive so that our customers are not penalized by banking in a way that is true to their faith.

No. Shariah logbook financing is available to anyone who may wish to use interest free banking. Anyone of any religious background is welcome to apply for the products at momentum credit.

No. We participate in the risk of transaction and accordingly earn profit. Interest is fixed and does not require participation in risk. The fact that the profits we make through trade and share with customers are similar to interest rates is because we operate in a conventional economic environment. The safest and best way for you to judge is to check the value of what you would receive from conventional financial institutions. We make every effort to remain competitive so that our customers are not penalized by banking in a way that is true to their faith.

• The Holy Quran.
• The Sunnah of the Holy Prophet (Peace Be Upon Him).
• Ijma' (consensus of the Ummah).
• Qiyas (Analogy).

Prohibition of interest is not limited to Islam. It is also prohibited in Judaism and Christianity - for reference see Exodus 22:25, Leviticus 25:35-36, Deuteronomy 23:19, Psalms 15:5, Proverbs 28:8, Nehemiah 5:7 and Ezekiel 18:8,13,17 & 22:12.

During the time of the Prophet Muhammed, many people gained from lending money at exorbitant rates, thereby gaining from the misfortune of others. As a result, the payment of interest was forbidden in Islam because it was unjust.

Islam teaches that money should be used in a useful way. You cannot make money from money, but you can generate wealth through legitimate trade in goods and items. The risks and rewards must however be shared

Sahih Logbook Financing Facility is a leasing facility whereby Momentum Credit Limited (“Momentum”) purchases a motor vehicle belonging to Customer who is need of funds, pays the Customer an agreed amount of money, then leases out the motor vehicle back to the Customer (lessee) for a specified duration of time. Customer will then use the motor vehicle the same way they had been using it before while paying back to Momentum, specified monthly rental amounts.

At the end of the lease period and on completion of payment of the last monthly rental payment in full, the motor vehicle will be gifted and transferred back to the Customer by Momentum and the original logbook handed back to the Customer.

The Shari’ah concept applied to this Logbook Financing Facility is Ijarah Muntahia Bitamleek. ▪ Ijarah refers to leasing of assets whereby a financier such as Momentum (as lessor), purchases an identified asset from a Customer and then leases out the asset back to the Customer or lessee at an agreed rental payment and pre-determined lease period upon the ‘aqd’ (contract). The ownership of the asset remains with the lessor while the lessee only owns the right to use the asset. At the end of the lease period and completion of payment of the last monthly rental payment, the lessor (such as Momentum) transfers back the asset to the lessee (the Customer) by way of ‘Hibah’ (gift).

Prohibition of interest is not limited to Islam. It is also prohibited in Judaism and Christianity - for reference see Exodus 22:25, Leviticus 25:35-36, Deuteronomy 23:19, Psalms 15:5, Proverbs 28:8, Nehemiah 5:7 and Ezekiel 18:8,13,17 & 22:12.