Infographics
Deposit handling
Customers deposit money into the bank, which then uses these funds to provide Shariah-compliant financing to other clients, such as through Murabahah or Ijarah.
Earning mechanism
Clients repay the financing amount along with an agreed profit (not interest), and the bank earns its income from these profit-based transactions.
Deposit handling
Customers deposit money into the bank, which then uses these funds to provide interest-bearing loans to borrowers.
Earning mechanism
Borrowers repay the loan with interest, allowing the bank to profit from the interest rate spread—the difference between loan and deposit rates—while depositors receive interest income on their savings.
How it works
Participants contribute money to a Takaful fund managed by a Takaful operator, with contributions made on the basis of donation (tabarru'). In the event of misfortune, such as an accident or death, affected participants receive compensation from the shared fund.
Underlying principle
Takaful is based on risk-sharing and mutual cooperation, operating under Shariah principles without involving interest (riba) or uncertainty (gharar).
How it works
The company provides coverage and pays out claims in the event of insured risks (e.g. accidents, death).
Underlying principle
Conventional insurance is based on risk transfer, where the insurer assumes the policyholder’s risk, and it generates profit through interest-bearing investments and risk pricing.
