Halal Entrepreneurship: The Seller Must Own the Asset
In Islamic finance, the bank does not lend money with interest; instead, it buys the asset and then sells it on installments. This aligns with the principle that the seller must own the asset before selling it. On Qist, this mechanism funds your project: the platform buys the asset (e.g., equipment or software) and pays for it in full, then sells it to you at cost plus an explicit profit margin, in installments without interest.
Payment in USDC: Stability and Transparency
All transactions on Qist are conducted in USDC, a stablecoin pegged to the US dollar, preventing price volatility that could lead to gharar (uncertainty). This ensures you know exactly the amount due each installment, and payments are automated via smart contracts on Base, eliminating the need for an intermediary bank.
No Riba or Gharar: Foundation of Islamic Finance
Riba (interest) and gharar (uncertainty) are prohibited in Shariah. Qist ensures all terms are clear from the start: fixed price, fixed installment schedule, and no hidden fees. If you pay all installments on time, there are no additional costs. In case of delay, you get a 3-day grace period with no penalties, as monetary penalties are considered riba.
Surplus Returned: Profit Sharing Principle
If you repay the financing before the due date, Qist returns a portion of the profit margin proportional to the remaining period. This reflects the spirit of fairness in Islamic transactions, where neither party benefits unfairly from the other's hardship or early settlement.
How Qist Implements This
During Entrepreneurship Week, an entrepreneur can apply for project financing via the Qist platform. After eligibility verification, the platform buys the required asset (e.g., a machine or software license) and becomes its owner, then sells it to the entrepreneur in monthly installments in USDC. The contract is open and verified on BaseScan, with a total fee of 2% of the asset value. No banks, no interest, no gharar.
Discover Qist: qist.info
Educational content, not financial advice