|Conventional Business just lends to its customer actually a loan contract.
|| Islamic Business purchases assets and create joint enterprise through Musharakah – Shirkah-tul- ‘Aqd.
|Conventional Business has no Shariah Compliant assets in its ownership.
|| Islamic Business has Shariah Compliant assets through purchases of the existing mortgage assets portfolio.
||Islamic business earns profit through rental agreement.
|No loss will be borne.
||Islamic Business may suffer from loss according to the spirit of Musharakah – Shirkah-tul- ‘Aqd.
|Conventional Business charges Interest as income.
|| Islamic Business earns profit from Musharakah Pool as per agreed profit-sharing mechanism.
|Penalties may be charge for late payment as income.
||Charity may be applicable for late payment for charitable purpose (note: not an income of PMRC).