The Problem: Riba-Based Loans Burden Women Entrepreneurs
Many women entrepreneurs struggle to find financing that aligns with their faith. Riba-based loans impose interest, contradicting Islamic principles and burdening small businesses. The global Islamic finance industry manages around $4 trillion in assets, yet practical solutions for women entrepreneurs remain limited. This underscores the need for a fair, transparent alternative.
The Solution: Decentralized Islamic Finance on Base
Qist is the first decentralized Islamic finance platform on Base offering a product based on asset sale by installments (Murabaha). Instead of a riba loan, Qist purchases the required asset (e.g., equipment or goods) and sells it to the entrepreneur at cost plus a disclosed profit margin, with a fixed repayment schedule. Payments are made in USDC stablecoin, with no interest (riba) or gharar (excessive uncertainty). If the client repays early, the remaining profit is refunded. This flexibility supports emerging businesses.
Real Story: Funding a Home-Based Bakery Without Riba
Umm Sarah, a Saudi entrepreneur, wanted to expand her home bakery business. She needed an industrial oven costing $5,000. Traditional banks demanded interest and guarantees, while Qist offered Islamic financing: Qist bought the oven and sold it to Umm Sarah for $5,300 payable in 10 monthly installments. She paid $500 as a down payment, then $480 per month. After 5 months, she paid the remaining balance early, and Qist refunded $150 of the remaining profit. She thus saved $150 compared to a riba loan.
Shariah Principles in the Qist Process
Qist operates according to Islamic finance principles: (1) The seller (Qist) owns the asset before sale, (2) no riba at any stage, (3) no gharar (full disclosure of terms), (4) profits are predetermined, (5) early repayment yields a refund of unearned profit. The contract is open source and verified on BaseScan, ensuring transparency. Platform fees are only 2% of the sale price, used for operations with no hidden interest. A 3-day grace period for late payments eases pressure on women entrepreneurs.
How Qist Implements This
To implement: (1) The entrepreneur submits a financing request specifying the desired asset and purchase link. (2) Qist reviews and purchases the asset using USDC. (3) Qist offers an installment sale contract at cost + disclosed profit (maximum 2% fee + transparent margin). (4) The entrepreneur pays the initial down payment (10-20%) and receives the asset. (5) She pays monthly installments via USDC. (6) If she pays early, the remaining profit is calculated and refunded. All steps are on-chain, ensuring transparency. True Islamic finance, fair and riba-free.
Discover how a woman entrepreneur funded her project via Qist: qist.info
Informational content, not financial advice