How does Shariah-compliant P2P lending work at Ethis Indonesia?

At Ethis Indonesia, we only offer P2P lending to businesses and not individuals. Our transaction is based on Musharakah, a limited-scope joint-ventures partnership to fund the purchase of an issuer’s assets. Each project will go through a thorough shariah screening by our shariah advisory team before it’s launched for funding.

Investors will appoint PT SMB, our sister company, to enter into a Musharakah partnership with the issuer on their behalf through a Wakalah (representative) agreement. Once a project has been fully funded, the amount raised from the P2P lending will be transferred to the issuer to purchase the asset.