Bank Proposal
Proposal 1: A 15% profit margin per annum for the capital outlay
Profit Margin – 15% out of RM250,000
Profit for 1st year:
Investor: 15% x RM250,000 = RM37,500
Profit for 2nd year:
Investor: 15% x RM250,000 = RM37,500
Profit for 3rd year:
Investor: 15% x RM250,000 = RM37,500
Review:
This proposal is relates to loan procedure. The investor acted as a creditor lend their money, RM 250, 000 to the entrepreneur (debtor). No matter, either the entrepreneur gain profit or not, the investor will gain their profit (interest) 15% of capital outlay (RM250,000) every year. Therefore from the above transaction, the proposal is like a loan transaction which is lend by a creditor to the debtor.
Proposal 2:
A 12% profit sharing per annum
Profit Margin – 12: 88
Profit for 1st year:
Rab al mal: 12% x RM100,000 = RM12,000
Mudarib: 88% x RM100,000 = RM88,000
Profit for 2nd year:
Rab al mal: 12% x RM150,000 = RM18,000
Mudarib: 88% x RM150,000 = RM132,000
Profit for 3rd year:
Rab al mal: 12% x RM50,000 = RM6,000
Mudarib: 88% x RM50,000 = RM44,000
If Loss:
If the investment resulted in a loss of, then all this loss