Murabaha: an identified asset and disclosed sale price
Murabaha is a sale arrangement in which a financier acquires an identified asset and sells it to the customer at a disclosed cost plus an agreed profit. In a collectively funded project, documents must show who purchases the asset, when ownership and risk pass, and how investors’ rights relate to the sale receivable. The asset cannot be reduced to a label attached to an unexplained cash advance. Check supplier invoices, delivery specifications, the payment schedule and remedies for defective or undelivered goods. Eisar’s published financing descriptions provide an Indian cooperative example to examine, subject to membership and actual contract terms.
Ijara: payment for the use of an asset
Ijara concerns leasing the use of an asset for an agreed rent and period. The agreement should allocate ownership responsibilities, operating expenses, damage risk and the consequences of early termination. Any later ownership transfer needs its own clear terms; paying rent does not automatically make the lessee the owner. Cheraman describes equipment leasing within its non-deposit-taking NBFC activities. That institutional offering does not establish that an unrelated crowdfunding platform can lawfully pool public money into leases. Examine the proposed investment vehicle, management fees, insurance arrangements and exit mechanism before contributing capital.