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Tamkin Microfinance Crowdfunding

Overview

Tamkin Application aims to connect financial surplus and requirement between parties according sharia principles. There are several parties involved:

  • Fund Provider
  • Fund User
  • Rating and Eligibility Analyst
  • Platform Administration

In general, there are two types of usage of fund:

  • Social Transaction : fund providers lend money to fund receiver with the specified amount, payment period, and payment amount. As per sharia requirement, this loan cannot incur benefit to the lender. Therefore the amount of money paid back to fund provider must equal to the amount lent.

  • Commercial Transaction : fund providers involve in business relationship with fund user. The relationships can be one of the following :

    • Trading of Goods or Services : fund providers use their money to purchase goods/service required by fund users in cash. After the transaction completed, the goods/service is now on fund providers' posession. Fund user then purchase the goods/services with installment. Fund providers gain profit from the price difference between their cost of acquisition and the selling price of the goods/service. In sharia terms this transaction is called murabaha (for goods) and ijarah (for services).

    • Joint Ownership : fund providers inject capital to fund users' business/project. At the beginning of transaction, calculation is performed to determine share/ownership proportion between fund provider and fund user. Ownership proportion will then define profit sharing ratio between parties. Upon agreed interval (monthly, quarterly, etc), profit/loss is reported and profit/loss sharing is distributed between parties. At the end of transaction, fund users and providers evaluate the current standing and determine whether the project is to be continued or terminated. Upon termination, calculation is again performed to split the capital according to ownership proportion.

Fund providers and fund users are under the assumption of not knowing each other. Hence the rating and eligibility analyst. This party will conduct physical visit to fund users' location of business, examine the operation, assess the financial health, and ultimately give recommendation/rating of the fund user. For their effort, certain amount of fee will be incurred to support the operation of rating and eligibility analyst.

Lastly, the operation of Tamkin platform is also provided for certain amount of fee. The fee of both Tamkin and analyst will be charged per transaction basis.

In order to support the business process, the application will provide the following features:

Fund Provider

  • Registration

    • Personal Information
    • Banking Account

  • Fund Usage Selection (Social or Commercial)

  • Project / Fund User Selection

    • Filter by geographic location
    • Filter by fund requirement
    • Filter by business type
    • Filter by rating (rating method to be discussed later)

  • Fund Transaction

    • Disburse
    • Receive profit sharing
    • Fund return

  • Detailed project report

    • Cashflow Report
    • Financial Statement

  • Portfolio report

    • Overall view across funded projects

Fund User

  • Account Registration

    • Personal Information

  • Project Registration

    • Project information
    • Type of fund usage (social or commercial)
    • Type of business relationship (purchase or ownership sharing)
    • Amount of fund required
    • Payment schedule
    • Project Termination

  • Project Report

    • Cashflow Report
    • Profit/Loss Sharing Report

Rating/Eligibility Analyst

  • Registration

  • Analyze Project

    • Geographic Location
    • Photos
    • Operational Condition
    • Financial Condition
    • Cashflow Estimates
    • Character Assessment

  • View Project Report

Tamkin Administrator

  • User Management
  • Activate/Deactivate/Lock User
  • Activate/Deactivate/Lock Project
  • Monitor Projects
  • Utilities