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Shariah Compliance

Our commitment to Shari’ah Compliance

Compliance is not merely a function or department here at Lendo.
We hold our business conduct according to Islamic Ethics inclusive of principles and values.

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Tawarruq Process

01

Apply for financing by submitting the Invoice

Required documentation
Required documentation
  • Financing application form

  • Submit the Invoice

02

Accept the financing application by the platform

Required documentation
Required documentation
  • Financing acceptance notification

03

Signing the facility agreement and the offering financing

Required documentation
Required documentation
  • Financing Facility Agreement

  • Financing Offer

  • Master Murabaha Agreement between the platform and the Client. (it is only a facility Agreement no purchase or sale will be executed at this stage)

  • PoA to sell the commodities on behalf of the Client.

04

Open the Investment to the Investors

Required documentation
Required documentation
  • Platform T&C.

  • Privacy Policy.

  • Power of attorney agreement for the platform to carry out purchase and sale operations on behalf of Investors

05

Purchase the Commodity from Broker (A)

Required documentation
Required documentation
  • Murabaha Agreement

  • Request to purchase commodities through the Islamic Treasury transaction system “on behalf of the Lenders” from Broker (A).

  • Accept the Purchase from the Islamic Treasury transaction system from Broker (A)

  • Issue the commodities ownership certificate to the borrower.

06

Selling the commodity at spot and transferring the amount of financing to the SME

Required documentation
Required documentation
  • The platform sells the commodity (on behalf of the borrower) to the broker (B) and transfers the financing amount to the borrower

Why is Lendo Shariah Compliant?

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The remarkable thing about the Islamic Finance industry is that it has observed massive growth, not just in Muslim states, but globally. At Lendo, we understand our investor’s needs and obligations.

Therefore, we have worked with Islamic finance experts and Islamic legal advisors to create and abide by a structure that ensures all the invoice financing solutions we provide are shariah compliant.

How Morabaha Works?

Investor
commodity
commodity
01 SME Appoints Lendo as it’s agent to buy commodity. Lendo buys commodity from Trader 1
02 SME then sells the commodity to Lendo at Cost + Profit on deferred terms
commodity
03 Lendo sells the commodoty to Tarder 2
shariah

How Does Lendo Ensure
Shariah Compliance?

When SMEs apply for invoice financing, Lendo makes sure to thoroughly check that their business activity and use of funds are in line with the principles of Sharia. And only then are they forwarded to be displayed on the Lendo platform as an investment opportunity.

Our team is trained to ensure that these values are regularly and consistently met. Moreover, our Sharia Supervisory Board oversees all processes and products and suggests any changes they think should be made.

Lendo believes in doing business simply, transparently and ethically without compromising on your faith and religious values.

View our Shariah Certificate

Lendo's sharia supervisory board

Shariyah Review Bureau W.L.L. (SRB) has been appointed by Lendo ("the Company") as the Shari'a Advisor to advise the Company with respect to the Shari'a compliant products (the "Products") interpretation and compliance with the Shari'a principles. Shariyah Review Bureau W.L.L. is a Middle East-based firm with an international scholarly platform of 35 reputable Shari'a scholars covering the major global Shari'a compliant markets, including Malaysia, Kingdom of Saudi Arabia, Algeria, Egypt, Qatar, UAE, Sudan and Kingdom of Bahrain.

Licensed by the Central Bank of Bahrain it provides Ancillary services covering Shari'a review, structuring, compliance certificates (fatwa), and Shari'a supervisory audit services. The Shari'a Supervisory Board appointed to review and certify the Products's documentation and activities of Lendo is Sheikh Muhammad Ahmad. SRB will also assign the Shari'a audit team to confirm its operations and investments align with the Shari'a principles and report that to the Shari'a Supervisory Board, BOD and stakeholders on an annual basis.

After issuing the annual Shari'a audit report, the SSB will issue their annual Shari'a Supervisory Board areport addressed to the BOD confirming the Shari'a compliance of the Products' transactions executed during the year.

FAQs

Have more questions? Get prompt responses from a friendly, professional and knowledgable support team. Visit our FAQs page

What is Lendo?

Lendo is a Saudi Crowdlending Fintech, which aims to develop the financing market by offering fast, efficient, and convenient solutions

Is Lendo a Saudi Company and Registered in Saudi?

Yes! Lendo is a Saudi registered company authorized and supervised by the Saudi Central Bank (SAMA)

What is crowdlending?

It's a Peer-to-Peer (P2P) form of financing that reduces the number of intermediaries or middleman between borrowers and lenders. For instance, at Lendo we take cash from a pool of individuals (investors) and loan it to Small and Medium Enterprises (borrowers) with specified risk rating, loan duration, and Interest rate.

Who can invest in Lendo Opportunities?

Any Saudi national or resident above 18.

Got more questions?

Please Contact us and we will answer your questions

Lendo is located in 6533 Al Olaya St. – Alworood, Riyadh 12251 – 2609, Saudi Arabia.
Lendo Saudi Financing Company | Regulated by the Saudi Central Bank | CT: 1010499636 | License No. 61 / AU / 202203
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RISK WARNING
The competent finance team at Lendo evaluates the credentials of each business before finalizing a user agreement. As a buyer-centric entity, Lendo adheres to a set of compliance practices and mechanisms to ensure that only authentic listings are featured on the platform for funding purposes. Nonetheless, it is imperative for investors to understand that they are lending to SMEs which maybe at the early-stages of establishing their presence in the industry. Therefore, the level of risk associated with such investments is higher which could also result in a potential loss and delays in repayment. It is necessary to understand that you could lose your money.
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