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Ada Pertanyaan? Kami punya jawabannya.

Apa itu pendanaan crowdfunding?

Crowdfunding adalah layanan pengumpulan uang secara digital, yang ditujukan langsung kepada suatu proyek. Pembiayaan crowdfunding ditujukan kepada suatu proyek niaga yang dapat menghasilkan profit dan pengembalian uang kepada pendana.

 

Apakah perbedaan Crowdfunding Syariah Ethis dengan pembiayaan digital lain?

Pembiayaan Crowdfunding Syari’ah menggunakan landasan kontrak (akad) berbasis bagi hasil dan tidak berpedoman pada suku bunga (riba). Dana Crowdfunding juga disalurkan ke proyek yang membawa dampak sosial dalam skala lebih besar.

 

Bagaimana Ethis menyelesaikan kesepakatan antara pihak-pihak yang terlibat?

Semua kontrak / perjanjian akan dikirim melalui aplikasi penandatanganan E-Signing ke alamat email investor yang terdaftar di Ethis. Penandatanganan dilakukan secara elektronik atau dengan sistem digital.

 

Ada berapa kontrak (akad) syariah yang digunakan Ethis?

Kami menggunakan beberapa akad sesuai prinsip keuangan Islam yaitu bagi hasil usaha (Mudharabah), agency / perwakilan (wakalah), pemesanan barang (Isthisna) dan jual beli (Murabahah) yang di terapkan pada skema pembiayaan.

 

Bagaimana cara menggunakan layanan Ethis?

Untuk menjadi user Ethis, Anda dapat melakukan registrasi pada menu Bergabung melalui situs website.

 

Apa saja yang diperlukan untuk menjadi Pengguna layanan Ethis?

Berdasarkan POJK No.77, setiap pengguna layanan jasa keuangan harus melengkapi beberapa dokumen berupa NIK, NPWP, Nomor Rekening transaksi.

 

Apa saja manfaat dari layanan crowdfunding Ethis?

Sebagai pengguna, Anda dapat melakukan transaksi pemberian dana langsung pada proyek pengembangan properti serta mengajukan pembiayaan atas proyek properti yang Anda miliki.

 

Apakah pengguna dapat memiliki lebih dari satu akun?

Setiap pengguna hanya dibolehkan menggunakan satu akun di platform Ethis. Hal ini bertujuan untuk keamanan transaksi sesuai regulasi yang telah ditetapkan pemerintah.

Pendanaan apa saja yang ditawarkan oleh Ethis?

Saat ini kami membuka pendanaan untuk modal konstruksi & brigding financing untuk proyek pengembangan perumahan.

 

Siapa saja dan apa persyaratan untuk memohon pendanaan Ethis?

Individu pemilik perusahaan dan perusahaan developer dapat mengajukan pembiayaan proyek melalui halaman pendanaan kami.

 

Apakah seluruh proyek properti dapat didanai oleh Ethis?

Hingga saat ini kami tengah berfokus pada proyek pengembangan perumahan rakyat (middle – low cost housing) sebagai upaya mendorong jumlah supply perumahan untuk kalangan masyarakat menengah – kebawah.

 

Bagaimana cara mengirimkan aplikasi pendanaan ke Ethis?

Pengajuan pendanaan dapat dilakukan secara online melalui form dan melengkapi data – data proyek terkait.

 

Berapa lama proses aplikasi saya dapat persetujuan untuk pendanaan?

Proses seleksi proyek berkisar antara 2 – 4 minggu dengan durasi crowdfunding 45 hari maksimum.

 

Apakah ada sekuritas jaminan untuk pendanaan Ethis?

Sebagai proteksi atas pemberi dana, beberapa aset dapat dijadikan sebagai sekuritas untuk mitigasi risiko.

 

Adakah biaya yang dikenakan oleh Ethis untuk pendanaan crowdfunding?

Biaya platfom yang kami kenakan hanya sebesar 5% dari nominal pendanaan, ditambah Rasio Bagi Hasil (PSR%) yang akan diberikan kepada pemilik dana (Funder).

 

Adakah denda yang dikenakan saat keterlambatan pengembalian dana?

Syariah tidak membenarkan adanya tambahan biaya denda dalam hutang dan pembiayaan, akan tetapi untuk mencegah keterlambatan operasional kami akan menetapkan potongan 0.1% dari PSR untuk didonasikan setiap 1 bulan keterlambatan.

Apakah crowdfunding untuk pendanaan real estate memiliki resiko?

Penting untuk dipahami bahwa semua alternatif investasi dalam bentuk pendanaan termasuk crowdfunding di pendanaan pengembangan real estate memiliki kemungkinan akan kehilangan modal. Dianjurkan untuk berinvestasi menggunakan tabungan surplus, dan diversifikasi investasi / pendanaan di berbagai kampanye proyek.

 

Mungkinkah saya kehilangan dana yang digunakan untuk pendanaan melalui platform Ethis?

Mungkinkah saya kehilangan dana yang digunakan untuk pendanaan melalui platform Ethis?”]Dalam keadaan buruk, modal yang didanakan mungkin tidak dapat diperoleh kembali, jika terjadi kegagalan total, semua modal ada kemungkinan hilang.

 

Bagaimana Ethis mengelola atau meminimalisir suatu resiko?

Fungsi keuangan syariah adalah berdasarkan pembagian risiko, bukan transfer risiko. Bagaimanapun, jaminan dalam pendanaan akan kuat jika pihak yang memberikan jaminan juga kuat. Ethis memiliki proses penyaringan yang ketat dan teliti untuk mengurangi risiko pihak lawan dan proyek, serta risiko pasar dan eksternal. Ethis menggalakkan uji tuntas sebelum melakukan kampanye proyek.

Bagaimana Crowdfunding Real Estate bisa memberikan dampak sosial kepada masyarakat?

Ethis memberdayakan pendana yang berpenghasilan rata-rata, karena berinvestasi di real estate biasanya memerlukan harta yang lebih banyak. Oleh karena itu orang yang berpenghasilan cukup biasanya belum bisa memasuki pasar ini. Crowdfunding memberikan kesempatan kepada mereka untuk bergabung dalam pendanaan bersama pendana lainnya. Crowdfunders dapat memulai dengan investasi dalam jumlah kecil. Tetapi, mereka juga dapat menikmati keuntungan bagi hasil sesuai proyek pilihan yang didanai.

 

Apakah Ethis termasuk perusahaan yang bergerak di bidang sosial?

Ethis adalah platform finansial yang bertujuan memberikan dampak sosial yang positif. Dana dari komunitas investor akan kami salurkan ke proyek-proyek pengembangan real estate di wilayah dan komunitas yang membutuhkan bantuan. Kami membangun rumah bersubsidi dan perumahan murah. Selain itu, kami juga mendukung proyek Pengembangan Tanah Waqaf dan proyek yang ramah lingkungan.

 

Apa yang membedakan Ethis dengan platform crowdfunding bidang real estate lainnya?

Di Ethis anda dapat berinvestasi dalam berbagai jenis proyek yang berbeda. Namun, kami memiliki preferensi dalam proyek yang memiliki dampak sosial. Terutama untuk perumahan yang terjangkau di Indonesia, yang diperkirakan masih memerlukan penyediaan rumah dalam jumlah besar. Dengan bangga, kami dapat berada di antara mereka untuk membantu warga berpenghasilan rendah, mengubah status mereka sebagai penyewa menjadi pemilik rumah.

Dalam hal ini, dana crowdfunding kami hanya digunakan untuk membiayai developer dan kontraktor real estate, bukan berdagang atau jual-beli properti untuk disewakan.
Kami juga menggunakan dana dari kampanye crowdfunding untuk menyediakan pendanaan sementara dengan jangka waktu yang singkat kepada Developer real estate.

Apa itu Syari'ah? Dan apa yang dimaksud dengan Keuangan Syari'ah?

Islam bukan hanya sekedar agama; tapi juga pedoman hidup yang mengandung kode hukum dan etika yang berhubungan dengan masalah sosial, ekonomi dan politik. Muslim diharuskan untuk hidup sesuai dengan Syari’ah di semua aspek kehidupan. Syari’ah menentukan batasan pada semua jenis keuangan dan investasi yang diperbolehkan untuk komunitas Muslim. Keuangan Islam dapat didefinisikan sebagai badan kontrak keuangan dan aturan yang telah diadopsi dari kekayaan warisan penelitian ilmiah dalam Fiqh Muamalat (hukum transaksi Islam) dan dimodifikasi untuk mematuhi peraturan perbankan modern, namun tetap sesuai dengan prinsip-prinsip Syari’ah.

 

Dalam Islam, dana harus digunakan secara produktif, dan hasil keuntungan harus dilakukan melalui perdagangan dan cara pendanaan yang sah menurut Islam. Pendanaan secara berkelompok harus mencakup elemen pembagian risiko dan idealnya harus dipastikan bahwa penerima dana akan menggunakan dana dengan cara yang diperbolehkan dalam Islam. Jika terdapat bunga pada hasil pendanaan maka dianggap sebagai penyalahgunaan akad dan sepenuhnya dilarang dalam Islam. Syari’ah juga tidak mengizinkan perdagangan atau pendanaan / investasi dalam industri atau komoditas yang tidak etis, seperti: senjata, perjudian, alkohol, perbankan atau asuransi konvensional, makanan atau minuman non-halal, hiburan non-halal, dan banyak lagi.

 

Apakah Ethis sudah sesuai dengan prinsip syari'ah?

Seluruh kontrak yang digunakan Ethis dilandasi oleh aturan-aturan syari’ah. Dokumentasi kami disiapkan oleh petugas legal yang telah mempunyai pengalaman dalam aturan-aturan syari’ah.

 

Apakah perbedaan pendanaan syari'ah dengan pendanaan konvensional?

Salah satu tujuan utama dalam prinsip syari’ah adalah menciptakan keadilan / keseimbangan sosial. Sistem syari’ah lebih memperhatikan dampak dari kegiatan pendanaan yang berfokus pada ekonomi, masyarakat dan lingkungan. Dalam hal ini, Ethis memperhatikan segala aktivitas yang dilakukan mempunyai aspek-aspek tersebut. Lain halnya dengan sistem keuangan konvensional yang kurang mempertimbangkan nilai etika, lingkungan, atau sosial karena tujuan utamanya adalah memaksimalkan laba.

 

Apakah memberi pendanaan syariah lebih beresiko daripada pendanaan konvensional?

Setiap investasi / pendanaan pasti mempunyai resiko. Sama seperti konvensional, pendanaan berbasis syari’ah membutuhkan evaluasi karena menggunakan metode manajemen risiko seperti: menganalisa bisnis planning pada suatu proyek, mengelola keuangan dari si penerima dana, mengamati riwayat pembayaran utang, dan hal-hal terkait lainnya. Namun, agar investasi / pendanaan sesuai dengan syarat syari’at Islam, hal ini memerlukan beberapa analisa tambahan yang harus dilakukan untuk memastikan bisnis proyek yang membutuhkan pendanaan patuh pada prinsip-prinsip syari’ah. Pendanaan dalam bidang industri atau komoditi yang tidak sesuai syari’ah, seperti: perdagangan/produksi senjata, perjudian, perdagangan alkohol, perbankan atau asuransi konvensional, makanan dan minuman non-halal, hiburan non-halal, dan sejenisnya tidak diperbolehkan dalam syari’ah.

Bisakah anda menjelaskan Crowdfunding dalam pengertian yang lebih awam?

Crowdfunding adalah aktivitas penggalangan dana dengan jumlah kecil dari sekelompok pendana yang tergabung di suatu online platform. Dana yang dikumpulkan bisa digunakan untuk kegiatan amal, investasi atau keduanya dengan syarat menyatakan tujuan kegiatan tersebut dengan jelas. Pemilik projek yang mengajukan pendanaan juga disarankan untuk menyebutkan alasan meminta pendanaannya.

Bagaimana platform crowdfunding bisa digunakan untuk aktivitas investasi?

Aktivitas investasi dalam sistem crowdfunding dibagi menjadi 2: Equity dan Debt. Ketika proyek memilih menggunakan platform equity crowdfunding, para pendana yang tergabung secara online mengharapkan pembagian ekuitas dalam proyek tersebut dari pemilik proyek tersebut. Investor dapat memanfaatkan model ini sebagai sumber investasinya karena tidak memerlukan akreditasi untuk menjadi seorang investor.

Dalam crowdfunding berbasis hutang, seseorang dapat mengajukan pinjaman yang disediakan oleh platform yang sesuai, biasanya lebih dikenal sebagai pinjaman Peer-to-Peer (P2P). Jumlah pinjaman didapatkan dari hasil kontribusi member crowd investor dengan memberikan pinjaman dalam jumlah yang berbeda. Penentuan suku bunga dan durasi pengembalian pinjaman berdasarkan proses credit score si peminjam / borrower. Score ini disebutkan oleh platform berdasarkan informasi yang didapatkan dari borrower sendiri. Metode ini memberikan kesempatan para investor untuk membuat portfolio pinjaman untuk mendiversifikasi resiko yang berbeda dari setiap peminjam yang berbeda.

Hak apa yang didapatkan oleh pendana jika berinvestasi di crowdfunding platform?

Pendana yang tergabung bersama Ethis berhak mendapatkan pengembalian modal atau profit sesuai dengan kesepakatan yang tertulis dalam kontrak. Payout dilakukan ketika aset (tanah atau properti), atau ketika pengerjaan proyek telah selesai.

Apakah ada opsi untuk meminta kembali uang yang telah didanakan sebelum jatuh tempo?

Tidak

Apakah ada jaminan modal yang didanakan melalui platform crowdfunding?

Tidak ada jaminan modal dalam prinsip syariah. Tetapi Ethis mempunyai serangkaian upaya dalam meminimalisir kemungkinan terburuk dalam berinvestasi melalui platform Ethis.

Apakah investor dapat memastikan keamanan modal awal yang didanakan pertama kali?

Tidak. Ada beberapa kemungkinan buruk yang tidak dapat diprediksi oleh Ethis atau diluar kemampuan Ethis.

Di Ethis, dana investasi akan disalurkan ke proyek properti yang sebenarnya dan bukan properti yang dijual ulang. Kami memberi mandatori kepada developer untuk memiliki kepemilikan tanah sebelum menjadikannya proyek yang akan didanai oleh pendana Ethis atau bekerjasama dengan Ethis. Standar ini kami jaga untuk membantu kami dalam membagi laba bersama para pendana ketika tanah terjual.

Bagaimana cara Ethis me-manage resiko?

Kami melakukan proses screening yang ketat untuk pemilihan proyek. Kami memiliki beberapa professional dari berbagai negara dengan pengalaman dalam bidang properti yang cukup lama. Mereka membantu Ethis dalam menginvestigasi latar belakang developer sebelum menerima proyek tersebut. Dalam beberapa kasus tertentu, kami juga dapat menjadi atau memiliki hubungan sebagai co-developer untuk memegang penuh dalam hal pendanaan, penggunaan dana, dan pengawasan perkembangan proyek.

Bagaimana penjadwalan laporan dari pengawasan proyek dilakukan

Informasi akan dibagikan setiap bulannya, paling sedikit, terkhusus jika ada perkembangan yang signifikan.

Apakah mungkin pendana mendapatkan bagian saham di proyek properti yang ia pilih?

Tidak. Saat ini, pendana yang tergabung di Ethis hanya mendapatkan keuntungan bagi hasil ketika proyek tersebut berhasil terjual kepada end buyers. Ethis tidak melayani pembagian saham seperti platform equity crowdfunding lainnya.

Bagaimana jika proyek yang dibiayai menerapkan prinsip syariah ketika tahap crowdfunding, tetapi setelah pengembalian modal usaha proyek tersebut menjadi tidak berprinsip syariah?

Setelah pengembalian modal dan pembagian hasil, pendana tidak memiliki hubungan apapun atau kepemilikan proyek tersebut. Penerapan prinsip syariah menjadi tanggung jawab penuh pemilik.

Mengapa Ethis tidak menunjuk seorang atau pihak ketiga untuk mengawasi dan memastikan developer tidak melarikan diri?

Untuk saat ini, model bisnis kami menggunakan perusahaan kami sendiri; yaitu PT. Ethis Modal Indonesia (EMI) atau perusahaan terafiliasi yang menjadikan kami sebagai co-developer sehingga dapat masuk langsung ke dalam proyek tersebut dan memiliki fungsi yang sama dengan kustodian.

Kenapa developers lebih memilih untuk mengajukan pembiayaan ke Ethis daripada ke bank?

Proses pengajuan aplikasi dan pelayanan kami lebih cepat dan praktis daripada bank, begitu juga syarat dan ketentuannya (lihat pertanyaan sebelumnya).

[:en]Join Us.

 

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What is the flow of my investment from start to end?

Ethis matches your investment with a credible developer that we have screened in the project you choose. In Indonesia, the investment will be placed with PT Ethis as the co-developer or project partner. This gives an extra layer of protection to ensure the funds are managed properly.

The developer or contractor will use the investment to start or continue the development of the project. Sales can happen before project completion, or for some projects sales are already confirmed before the crowdfunding campaign.

Units are sold to the end buyer or to an Islamic Bank. Once the payment is received by the developer, the agreed share is transferred to EthisCrowd investors.

How are developers and projects screened?

Projects are screened by local partners first, then screened further by Ethis HQ in Singapore. A few criteria and considerations include:

  • Developers must have valid registration documents and good track records.
  • Legal registration, complete with the necessary documentation and permits
  • Land ownership status
  • Commercial viability, including sellability and availability of financing
  • Strong sales plan and team, or pre-secured buyers
  • On-site inspections and checks
  • Social impact and environmental responsibility

How do EthisCrowd investors earn profits?
The general process is that EthisCrowd investors enter into a profit-sharing or revenue-sharing agreement with the property developer for the project they choose to invest in. These sharing ratios are fixed, and the actual realised profits will thus depend on the sales and performance of the project the campaign is funding.

Payouts are made when the property is sold to the end-buyer or to Islamic Banks who then enter a long-term sale with the end-buyer. In Indonesia, PT Ethis works with BTN Syariah and Bank Syariah Mandiri.

What are the projected returns or profits?
Profits are based on conservative projections. In most cases projected sales prices are known and thus projected profits are known. However, there are no fixed profit or interest rates charged for financing. During our 2 years of operation our investors have been earning an average of 10% to 16% on their investments.

Are the projected timeframes accurate?
The projected timeframes published have already factored in a buffer for delays but payouts may at times be delayed further due to business and external circumstances.

Are there fees for EthisCrowd investors?
Registration to become an EthisCrowd member is free. The only fees you have to pay are those your bank charges for remittance when you transfer your investment to your selected project if it is outside the country your bank is located.
Does Ethis take share of the profits
Ethis collects an operating fee of 5% from the total amount raised from each fully funded project. This amount is not deduced from the returns paid to the investors.  Investors will receive returns as indicated on their contracts for all successful projects. If a project is fully funded but for some reason the project is cancelled, the funds of investors are returned and Ethis does not take its 5% operating fee.
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Risk Management Info

Is Real Estate Crowdfunding risky?
It is important to understand that all alternative investments including real estate crowdfunding can expose investors’ to loss of capital. It is recommended to invest only surplus savings, and to diversify investments across various campaigns.

Can I lose money investing in campaigns on EthisCrowd.com?
In the worst-case scenario, the full invested capital may not be recoverable. In the event of total failure, all capital may be lost.

How are risks managed or reduced?
Islamic finance functions based on risk sharing, not risk transfer. In any case, guarantees in Alternative Investment are only as strong as the parties giving the guaranty.  Ethis has a strict and rigorous screening process to reduce project and counterparty risk, as well as market and external risks. EthisCrowd is encouraged to do its own due diligence before investing.

Is it convenient for a person to invest in a foreign real estate market?
Yes. All you have to do is have is a bank account and the ability to make international bank transfers.

How do I check if an overseas developer is credible?
Ethis takes care of that for you. Once the project is listed all the info about the developer will be posted on the webpage for the project. You can then proceed to do your own due diligence about the developer based on the information provided as you see fit. You may also contact Ethis directly with any further enquiries you may have that may not have been answered on the project page.

 

Socially Responsible Investment (SRI) Info

How does Real Estate Crowdfunding empower people?

Ethis empowers the average investor. Real estate investment is typically available to high net worth individuals, and therefore average person usually cannot afford to enter this lucrative market. We level the playing field.
Crowdfunding allows for big capital to be created and mobilized by many. Crowdfunders can start by investing a small amount, and even spread more investments over multiple projects and campaigns at a time. Crowdfunders are also able to choose the campaigns they want to support.

Is Ethis a Social Enterprise?
Ethis is a platform for good. We match excess capital from our community of investors to projects for development of real estate in communities and territories that require help. We build subsidised estates and affordable housing. We support Corporate Waqaf projects and Waqaf land Development. We also develop eco-friendly projects.

What makes Ethis different from other real estate crowdfunding platforms?

At Ethis we invest in a variety of different kinds of projects. However, we have a strong preference for social impact projects. Our most preferred projects are affordable housing in Indonesia, a country that has a shortage of 18 million homes. We are proud to be among those helping the lower income citizens there move up from being renters to homeowners.

 

Our crowdfunding funds is often for real estate developers and contractors, not trading or flipping or buying property to rent.
We also use funds from our crowdfunding campaigns to provide bridging or temporary financing with short time-frames to real estate developers.

 

Legality in Singapore

Is Crowdfunding regulated by the Monetary Authority of Singapore (MAS)?

    • Crowd funding may be regulated under various legislation in Singapore depending on the form or method of fundraising.
    • For example, if the equity-based model is used, the crowd funding exercise would involve an offer of securities. This is subject to the requirements set out in the Securities and Futures Act (Cap. 289) (the “SFA”).
    • On the other hand, crowdfunding arrangements which do not involve the offer of securities (for example, where contributions are in the form of donations or pre-payment for merchandise) are not subject to MAS’ regulations.

Are overseas crowdfunding platforms that facilitate any offer of securities to Singapore investors caught under the applicable legislation?

    • This depends on the business model of the overseas crowdfunding platforms. For example, offers made through an overseas crowdfunding platform that solicits funds from investors in Singapore will be subject to prospectus and other applicable (e.g. licensing) requirements under the SFA such as; project or business proposal, the form of return (if any), how and when you might get a return, and the risks involved. However, given the borderless nature of the internet and the fact that many such crowdfunding platforms do not have any presence in Singapore, there are practical limits to the enforcement of local requirements. Thus, it is all the more important that consumers exercise vigilance when considering participating in such offers.
    • Before you contribute funds through such overseas crowdfunding platforms, you should ascertain if the platform is authorised or required to be authorised to facilitate such offerings, including in Singapore. You are encouraged to deal with regulated persons. The regulatory regime of MAS aims at safeguarding the interests of investors by ensuring that only competent and professional persons provide financial services to investors in Singapore. If you deal with an unregulated entity, you should be aware that the protection afforded under laws administered by MAS will not apply.

What can I do if I encounter problems arising from my participation in a crowdfunding agreement?

    • If you suspect that a person has breached the requirements under the SFA or FAA, you can report the matter to MAS by sending your feedback to consumers@mas.gov.sg.
    • If you have suffered a loss as a result of a breach of contract, you can approach the Consumers Association of Singapore (“CASE”) or the Singapore Mediation Centre (“SMC”). You can also take legal action, which can be a time-consuming and costly process. If you wish to seek legal advice or to engage a lawyer to take legal action on your behalf, the Law Society maintains a list of all registered lawyers in Singapore which can be accessed on their website at http://www.lawsociety.org.sg/

Is MAS considering developing rules and regulations to cater specifically to offer of securities made through crowdfunding?
MAS notes that crowdfunding is emerging in some countries as an alternative source of financing for start-ups and small companies. MAS is closely monitoring the developments in other jurisdictions on this front and looking into an appropriate regulatory framework for such new business models.

Is Ethis regulated?

  • There are no regulations at this time in Singapore for the type of crowdfunding activity Ethis is involved in. For this reason Ethis is not regulated by MAS. However, Ethis does report its activities to MAS in order to obtain regulatory advice and to make sure no laws are being violated. Ethis seeks to keep its business practices fair and transparent, and in doing so we aspire to implement crowdfunding best practices.
  • The activity of Ethis does not qualify as equity crowdfunding nor does it equate to issuing any kind of security or futures. Ethis arranges profit or revenue sharing agreements between its investors and the developers of the respective projects being invested in.

Are the Mudharaba contracts legally valid?
The Mudharaba contracts are enforceable in Singapore. Each contract is formed after a process of offer and acceptance occurring electronically via e-signed contracts.

Who are the parties to the contract?
The investor(s) and the property developer(s) are contractual parties to each contract. Ethis PTE Ltd or “Ethis Singapore”  is not a party to the contracts. Ethis Singapore simply facilitates the contracting process between the two parties by sending and transferring the contracting documents between the two parties in the beginning of the contract, and monitoring the payout process from the investee company to the investors at the end of the contract.

Are the monies guaranteed or protected?
No. In Singapore, only deposits placed with banks or finance companies are protected by the Deposit Insurance Scheme. As the Ethis crowdfunding platform is not a bank or a finance company, any monies placed with Ethis are not guaranteed by the government. However, since Ethis invests in fixed assets with value even in the worst case scenario the monies invested do not disappear. The assets will be sold and investors will be returned an amount equal to the percentage of value they invested in the project. This means that they will share in the loss if there are losses, and they will share in the profit if there are profits.

 

Shariah Issues

What is Islamic Finance? What is Shariah?

    • Islam is more than a religion; it’s also a way of life that contains a code of laws and ethics that deal with social, economic and political matters. Muslims are expected to live according to Shariah in all aspects of life. Shariah places restrictions on the types finance and investments that are permissible for the Muslim community. Islamic finance can be defined as the body of financial contracts and rules that have been adopted from the rich heritage of scholarly research in Fiqh Muamalat (Islamic law of transactions) and modified to comply with modern banking regulations while remaining in accordance with the principles of Shariah. In Islam money must be used in a productive way, and generating return on your money must be done through Islamically legitimate and ethical trade or investment. According to Shariah, group investments must include an element of risk sharing and ideally it should be confirmed that the investee will use the funds in a manner permissible in Islam. Generating interest on money is seen as income through exploitation and is fully prohibited in Islam. Shariah also does not permit trade or investment in unethical industries or commodities, such as: arms, gambling, alcohol, conventional banking or insurance, non-halal food or beverages, non-Halal entertainment and more.
    • Ethis aims to build a community of investors and businesses where risks are shared and capital is channelled into real economic activity that benefits the communities receiving the investments. Essentially, Ethis contracts follow the basic Islamic principle of sharing risk while seeking profit rather than the model used by banks which is transferring risk while seeking profit. Part of implementing this principle is clarifying that there are no capital guarantees because guaranteeing capital in investment is akin to Riba (interest) and it also contradicts the principle of risk sharing. We exercise all options to practice responsible management at the highest level, but we do not guarantee anyone against all the unexpected misfortunes of life. This is because we don’t believe in one party only bearing to gain while the others bear the possibility of loss. We profit together or we share loss together.

Is Ethis Shariah-Compliant?

  • All contracts that Ethis uses are based on Shariah compliant contract structures. The documentation is prepared by lawyers who have significant experience with structuring Shariah compliant contracts. We are currently in the process of obtaining official certified Shariah compliant status from recognized Islamic certification bodies in Singapore and Malaysia.

Does Shariah compliant Investment involve more risk than conventional investment?

    • With any type of investment, risk is determined several factors. Shariah and conventional investments need to be evaluated using the same risk management techniques such as analyzing the business plan of the project, the track record of the one seeking financing in terms of cash flow as well as debt repayment, etc. For investments to be qualified as Shariah compliant however, there is an extra level of analysis that must be carried out to ensure the businesses that are seeking funding are adherent to the principles of Shariah.Investment in businesses involved in non-Shariah compliant industries or commodities, such as arms, gambling, alcohol, conventional banking or insurance, non-halal food or beverages, non-Halal entertainment and more, is not permitted by Shariah.

How are Shariah compliant investments different from conventional investments?
A key purpose for imposing Sharia is to promote social justice. Shariah is more concerned with ethical, social, economic, and political impacts of investments on the economy, society and environment. It then directs investments towards responsible activity that benefits the abovementioned categories of concern. Conventional finance does not have the same ethical, environmental or social considerations as it’s primary objective is profit maximization.

 

Other Common Questions

Can you explain Crowdfunding in layman terms?
Crowdfunding is raising small portions of a total fundraising amount from a large group of people online. The funds raised from the crowd can be used for charity, or investment or a hybrid, whichever one is intended should be clearly declared by the platform hosting the crowdfunding service. It should also be mentioned by the project owner who is requesting the funds.

How does the investor use crowdfunding?

Investment crowdfunding is commonly divided into 2 kinds: Equity and Debt. When a project uses equity crowdfunding they seek equity investment from a large pool of investors online. The project owners or “issuers” give the investors an equity portion in their company in exchange for the funds invested. The investors can benefit from this model because there is no need to be an accredited investor to invest.
For debt based crowdfunding, a person seeking a loan will place their requested loan amount on an appropriate platform that provides crowdfunded loans, also known as Peer-to-Peer (P2P) loans. The loan amount is produced by several portions of the total amount being contributed by various members of the crowd. The interest amount and the repayment period will be determined by the credit score of the borrower. This score will be produced by the platform based on personal information gathered from the borrower. This method gives investors the opportunity to create a portfolio of loans to various people in order to diversify the default risk.

What are the rights of the funder/ investor when investing in a CF platform?
EthisCrowd investors have a right to the returns or profits depending on the agreement within the contract. Payout occurs when an asset (land or property) is sold, or when payment is made for work done.

Are there any sellback options before maturity?
No.

Is there any capital guarantee possible with CF investment, especially if the project fails?
Capital guarantee is not an option as mentioned in the Shariah Issues section. A profit equalization reserve is possible but not currently available with Ethis. Therefore it is advised that only surplus funds be invested in Ethis projects.

Can the investor at least be sure that the initial capital invested can be guaranteed?

No, it cannot be 100% guaranteed. It can be said that it is extremely unlikely for it to happen, but in the case of very extreme unfortunate circumstances your capital may be lost. We like to remind our investors that a guarantee is only as dependable as the entity that makes it. We trust guarantees from large banks because we believe they are very capable to pay back, but as time has proven, even some of the biggest players in the banking industry have fallen and taken the savings and investments of their customers with them.
At Ethis we invest in actual property and not the resale of property and we require developers to have a claim or ownership of the land before we channel investments to them. Keeping this standard helps us to have a right to profits from the land whenever it sold, even if it is much later than the date we project. So the more likely misfortune is delay in profits if the project is delayed, or a loss of some of the capital if the land and or project is sold at a loss for some reason.

What’s the method of risk management?
We screen the background of developers with great scrutiny in all projects. We have professionals with several years experience in the respective countries of the projects to first investigate the backgrounds of the developers before considering a project. Secondly, when we can we have a company we own or have affiliation with to become the co-developer of the project in order to hold the funds and make sure they are used properly as well as to monitor the progress of the project.

What is the reporting schedule for monitoring the project?
Frequent updates, at least monthly, especially when there is significant progress.

Is it possible to give investors a share in the Real Estate?
Not at this point. Currently, investors gain only the right to share profits with Ethis once the projects are sold to the end buyers. Giving a share would equate to equity crowdfunding and that’s not a service we provide.

What happens if a project is Shariah compliant when during the time of the investment, but after the exit it becomes Shariah non-compliant?
After the exit the investor has no affiliation or ownership with the project. The Shariah compliance of the use is the full responsibility of the owner.

Why not appoint a custodian to watch over the developer to make sure developers don’t run away with the money?
Currently our model is to use a company that we own or an affiliated company to enter into the project as a co-developer to serve the same function as a custodian.

What if a custodian was employed to manage the money in such a way that cash is disbursed in installments to the developers according to how much progress is made in the construction?
Our assigned co-developers do this for us.

Do the Indonesian home buyers get a title and the mortgage doc?
In Indonesia the end buyers of our projects are Islamic banks. Once the banks buy the houses they sell them with Islamic home loans to the buyers. In the case of Islamic mortgages, the bank and buyer share ownership first and the title remains with the bank. At the end of payment of the mortgage the title is transferred to buyer.

Is the ownership freehold?
Depends on the project. For most landed housing projects, the homebuyer makes the purchase with freehold status. For apartment units, it’s is usually strata-title.

Why do the developers come to Ethis instead of a bank?
There are several reasons. The most common is because our service is faster and simpler than banks. If the response from our investors is good, we can raise the money in a matter of days and we can have it in the bank account of the developer within a month. Our application process is simple we have and so are our terms (see above question: How are developers and projects screened). We don’t make the developers seeking funding jump through so many hoops like the banks do.

Questions? We have some answers.

The Basics

 

What is Crowdfunding?

The gathering of many people online to financially support a cause, business or individual. Each person giving a (small or large) fractional amount towards a fixed target amount.

What is Islamic Crowdfunding?

The combination of the technology of crowdfunding with the structures of Islamic finance and principles of Fiqh Muamalat.

What is Ethis?

Ethis Pte. Ltd. (Ethis) is a FinTech company registered and based in Singapore (Reg number 201026801E). We operate EthisCrowd.com, the world’s 1st Islamic Real Estate Crowdfunding platform. The name Ethis fuses the words Ethical and Islamic in line with our aims to be a premiere platform where both ethical and Islamic investors can come to find projects in line with their values to invest in. EthisCrowd.com is a community of approximately 17,000 individuals from around the word.

PT Ethis Indo Asia (PT Ethis) is an Indonesian associated company of Ethis Pte Ltd Singapore. PT Ethis is licensed in Indonesia as a real estate developer (Reg No 4014061031101517), contractor, investor and broker. It develops real estate, and also handles project and financial management of projects in Indonesia.

In 2016, the Ethis team successfully acquired the world’s first Peer-to-Peer lending (P2P) crowdfunding license with Islamic Investments, awarded by the Securities Commission of Malaysia.

What does Ethis do?
EthisCrowd.com empowers its growing community to finance the development of real estate projects around the world from the comfort of their homes. We connect EthisCrowd investors to social impact and other types of real estate opportunities in emerging regions of the world. We strive to ensure all our activities are ethical and aligned to the principles and spirit of Islam.

What is the flow of my investment from start to end?

Ethis matches your investment with a credible developer that we have screened in the project you choose. In Indonesia, the investment will be placed with PT Ethis as the co-developer or project partner. This gives an extra layer of protection to ensure the funds are managed properly.

The developer or contractor will use the investment to start or continue the development of the project. Sales can happen before project completion, or for some projects sales are already confirmed before the crowdfunding campaign.

Units are sold to the end buyer or to an Islamic Bank. Once the payment is received by the developer, the agreed share is transferred to EthisCrowd investors.

How are developers and projects screened?

Projects are screened by local partners first, then screened further by Ethis HQ in Singapore. A few criteria and considerations include:

  • Developers must have valid registration documents and good track records.
  • Legal registration, complete with the necessary documentation and permits
  • Land ownership status
  • Commercial viability, including sellability and availability of financing
  • Strong sales plan and team, or pre-secured buyers
  • On-site inspections and checks
  • Social impact and environmental responsibility

How do EthisCrowd investors earn profits?
The general process is that EthisCrowd investors enter into a profit-sharing or revenue-sharing agreement with the property developer for the project they choose to invest in. These sharing ratios are fixed, and the actual realised profits will thus depend on the sales and performance of the project the campaign is funding.

Payouts are made when the property is sold to the end-buyer or to Islamic Banks who then enter a long-term sale with the end-buyer. In Indonesia, PT Ethis works with BTN Syariah and Bank Syariah Mandiri.

What are the projected returns or profits?
Profits are based on conservative projections. In most cases projected sales prices are known and thus projected profits are known. However, there are no fixed profit or interest rates charged for financing. During our 2 years of operation our investors have been earning an average of 10% to 16% on their investments.

Are the projected timeframes accurate?
The projected timeframes published have already factored in a buffer for delays but payouts may at times be delayed further due to business and external circumstances.

Are there fees for EthisCrowd investors?
Registration to become an EthisCrowd member is free. The only fees you have to pay are those your bank charges for remittance when you transfer your investment to your selected project if it is outside the country your bank is located.
Does Ethis take share of the profits
Ethis collects an operating fee of 5% from the total amount raised from each fully funded project. This amount is not deduced from the returns paid to the investors.  Investors will receive returns as indicated on their contracts for all successful projects. If a project is fully funded but for some reason the project is cancelled, the funds of investors are returned and Ethis does not take its 5% operating fee.

 

Risk Management Info

Is Real Estate Crowdfunding risky?
It is important to understand that all alternative investments including real estate crowdfunding can expose investors’ to loss of capital. It is recommended to invest only surplus savings, and to diversify investments across various campaigns.

Can I lose money investing in campaigns on EthisCrowd.com?
In the worst-case scenario, the full invested capital may not be recoverable. In the event of total failure, all capital may be lost.

How are risks managed or reduced?
Islamic finance functions based on risk sharing, not risk transfer. In any case, guarantees in Alternative Investment are only as strong as the parties giving the guaranty.  Ethis has a strict and rigorous screening process to reduce project and counterparty risk, as well as market and external risks. EthisCrowd is encouraged to do its own due diligence before investing.

Is it convenient for a person to invest in a foreign real estate market?
Yes. All you have to do is have is a bank account and the ability to make international bank transfers.

How do I check if an overseas developer is credible?
Ethis takes care of that for you. Once the project is listed all the info about the developer will be posted on the webpage for the project. You can then proceed to do your own due diligence about the developer based on the information provided as you see fit. You may also contact Ethis directly with any further enquiries you may have that may not have been answered on the project page.

 

Socially Responsible Investment (SRI) Info

How does Real Estate Crowdfunding empower people?

Ethis empowers the average investor. Real estate investment is typically available to high net worth individuals, and therefore average person usually cannot afford to enter this lucrative market. We level the playing field.
Crowdfunding allows for big capital to be created and mobilized by many. Crowdfunders can start by investing a small amount, and even spread more investments over multiple projects and campaigns at a time. Crowdfunders are also able to choose the campaigns they want to support.

Is Ethis a Social Enterprise?
Ethis is a platform for good. We match excess capital from our community of investors to projects for development of real estate in communities and territories that require help. We build subsidised estates and affordable housing. We support Corporate Waqaf projects and Waqaf land Development. We also develop eco-friendly projects.

What makes Ethis different from other real estate crowdfunding platforms?

At Ethis we invest in a variety of different kinds of projects. However, we have a strong preference for social impact projects. Our most preferred projects are affordable housing in Indonesia, a country that has a shortage of 18 million homes. We are proud to be among those helping the lower income citizens there move up from being renters to homeowners.

 

Our crowdfunding funds is often for real estate developers and contractors, not trading or flipping or buying property to rent.
We also use funds from our crowdfunding campaigns to provide bridging or temporary financing with short time-frames to real estate developers.

 

Legality in Singapore

Is Crowdfunding regulated by the Monetary Authority of Singapore (MAS)?

    • Crowd funding may be regulated under various legislation in Singapore depending on the form or method of fundraising.
    • For example, if the equity-based model is used, the crowd funding exercise would involve an offer of securities. This is subject to the requirements set out in the Securities and Futures Act (Cap. 289) (the “SFA”).
    • On the other hand, crowdfunding arrangements which do not involve the offer of securities (for example, where contributions are in the form of donations or pre-payment for merchandise) are not subject to MAS’ regulations.

Are overseas crowdfunding platforms that facilitate any offer of securities to Singapore investors caught under the applicable legislation?

    • This depends on the business model of the overseas crowdfunding platforms. For example, offers made through an overseas crowdfunding platform that solicits funds from investors in Singapore will be subject to prospectus and other applicable (e.g. licensing) requirements under the SFA such as; project or business proposal, the form of return (if any), how and when you might get a return, and the risks involved. However, given the borderless nature of the internet and the fact that many such crowdfunding platforms do not have any presence in Singapore, there are practical limits to the enforcement of local requirements. Thus, it is all the more important that consumers exercise vigilance when considering participating in such offers.
    • Before you contribute funds through such overseas crowdfunding platforms, you should ascertain if the platform is authorised or required to be authorised to facilitate such offerings, including in Singapore. You are encouraged to deal with regulated persons. The regulatory regime of MAS aims at safeguarding the interests of investors by ensuring that only competent and professional persons provide financial services to investors in Singapore. If you deal with an unregulated entity, you should be aware that the protection afforded under laws administered by MAS will not apply.

What can I do if I encounter problems arising from my participation in a crowdfunding agreement?

    • If you suspect that a person has breached the requirements under the SFA or FAA, you can report the matter to MAS by sending your feedback to consumers@mas.gov.sg.
    • If you have suffered a loss as a result of a breach of contract, you can approach the Consumers Association of Singapore (“CASE”) or the Singapore Mediation Centre (“SMC”). You can also take legal action, which can be a time-consuming and costly process. If you wish to seek legal advice or to engage a lawyer to take legal action on your behalf, the Law Society maintains a list of all registered lawyers in Singapore which can be accessed on their website at http://www.lawsociety.org.sg/

Is MAS considering developing rules and regulations to cater specifically to offer of securities made through crowdfunding?
MAS notes that crowdfunding is emerging in some countries as an alternative source of financing for start-ups and small companies. MAS is closely monitoring the developments in other jurisdictions on this front and looking into an appropriate regulatory framework for such new business models.

Is Ethis regulated?

  • There are no regulations at this time in Singapore for the type of crowdfunding activity Ethis is involved in. For this reason Ethis is not regulated by MAS. However, Ethis does report its activities to MAS in order to obtain regulatory advice and to make sure no laws are being violated. Ethis seeks to keep its business practices fair and transparent, and in doing so we aspire to implement crowdfunding best practices.
  • The activity of Ethis does not qualify as equity crowdfunding nor does it equate to issuing any kind of security or futures. Ethis arranges profit or revenue sharing agreements between its investors and the developers of the respective projects being invested in.

Are the Mudharaba contracts legally valid?
The Mudharaba contracts are enforceable in Singapore. Each contract is formed after a process of offer and acceptance occurring electronically via e-signed contracts.

Who are the parties to the contract?
The investor(s) and the property developer(s) are contractual parties to each contract. Ethis PTE Ltd or “Ethis Singapore”  is not a party to the contracts. Ethis Singapore simply facilitates the contracting process between the two parties by sending and transferring the contracting documents between the two parties in the beginning of the contract, and monitoring the payout process from the investee company to the investors at the end of the contract.

Are the monies guaranteed or protected?
No. In Singapore, only deposits placed with banks or finance companies are protected by the Deposit Insurance Scheme. As the Ethis crowdfunding platform is not a bank or a finance company, any monies placed with Ethis are not guaranteed by the government. However, since Ethis invests in fixed assets with value even in the worst case scenario the monies invested do not disappear. The assets will be sold and investors will be returned an amount equal to the percentage of value they invested in the project. This means that they will share in the loss if there are losses, and they will share in the profit if there are profits.

 

Shariah Issues

What is Islamic Finance? What is Shariah?

    • Islam is more than a religion; it’s also a way of life that contains a code of laws and ethics that deal with social, economic and political matters. Muslims are expected to live according to Shariah in all aspects of life. Shariah places restrictions on the types finance and investments that are permissible for the Muslim community. Islamic finance can be defined as the body of financial contracts and rules that have been adopted from the rich heritage of scholarly research in Fiqh Muamalat (Islamic law of transactions) and modified to comply with modern banking regulations while remaining in accordance with the principles of Shariah. In Islam money must be used in a productive way, and generating return on your money must be done through Islamically legitimate and ethical trade or investment. According to Shariah, group investments must include an element of risk sharing and ideally it should be confirmed that the investee will use the funds in a manner permissible in Islam. Generating interest on money is seen as income through exploitation and is fully prohibited in Islam. Shariah also does not permit trade or investment in unethical industries or commodities, such as: arms, gambling, alcohol, conventional banking or insurance, non-halal food or beverages, non-Halal entertainment and more.
    • Ethis aims to build a community of investors and businesses where risks are shared and capital is channelled into real economic activity that benefits the communities receiving the investments. Essentially, Ethis contracts follow the basic Islamic principle of sharing risk while seeking profit rather than the model used by banks which is transferring risk while seeking profit. Part of implementing this principle is clarifying that there are no capital guarantees because guaranteeing capital in investment is akin to Riba (interest) and it also contradicts the principle of risk sharing. We exercise all options to practice responsible management at the highest level, but we do not guarantee anyone against all the unexpected misfortunes of life. This is because we don’t believe in one party only bearing to gain while the others bear the possibility of loss. We profit together or we share loss together.

Is Ethis Shariah-Compliant?

  • All contracts that Ethis uses are based on Shariah compliant contract structures. The documentation is prepared by lawyers who have significant experience with structuring Shariah compliant contracts. We are currently in the process of obtaining official certified Shariah compliant status from recognized Islamic certification bodies in Singapore and Malaysia.

Does Shariah compliant Investment involve more risk than conventional investment?

    • With any type of investment, risk is determined several factors. Shariah and conventional investments need to be evaluated using the same risk management techniques such as analyzing the business plan of the project, the track record of the one seeking financing in terms of cash flow as well as debt repayment, etc. For investments to be qualified as Shariah compliant however, there is an extra level of analysis that must be carried out to ensure the businesses that are seeking funding are adherent to the principles of Shariah.Investment in businesses involved in non-Shariah compliant industries or commodities, such as arms, gambling, alcohol, conventional banking or insurance, non-halal food or beverages, non-Halal entertainment and more, is not permitted by Shariah.

How are Shariah compliant investments different from conventional investments?
A key purpose for imposing Sharia is to promote social justice. Shariah is more concerned with ethical, social, economic, and political impacts of investments on the economy, society and environment. It then directs investments towards responsible activity that benefits the abovementioned categories of concern. Conventional finance does not have the same ethical, environmental or social considerations as it’s primary objective is profit maximization.

 

Other Common Questions

Can you explain Crowdfunding in layman terms?
Crowdfunding is raising small portions of a total fundraising amount from a large group of people online. The funds raised from the crowd can be used for charity, or investment or a hybrid, whichever one is intended should be clearly declared by the platform hosting the crowdfunding service. It should also be mentioned by the project owner who is requesting the funds.

How does the investor use crowdfunding?

Investment crowdfunding is commonly divided into 2 kinds: Equity and Debt. When a project uses equity crowdfunding they seek equity investment from a large pool of investors online. The project owners or “issuers” give the investors an equity portion in their company in exchange for the funds invested. The investors can benefit from this model because there is no need to be an accredited investor to invest.
For debt based crowdfunding, a person seeking a loan will place their requested loan amount on an appropriate platform that provides crowdfunded loans, also known as Peer-to-Peer (P2P) loans. The loan amount is produced by several portions of the total amount being contributed by various members of the crowd. The interest amount and the repayment period will be determined by the credit score of the borrower. This score will be produced by the platform based on personal information gathered from the borrower. This method gives investors the opportunity to create a portfolio of loans to various people in order to diversify the default risk.

What are the rights of the funder/ investor when investing in a CF platform?
EthisCrowd investors have a right to the returns or profits depending on the agreement within the contract. Payout occurs when an asset (land or property) is sold, or when payment is made for work done.

Are there any sellback options before maturity?
No.

Is there any capital guarantee possible with CF investment, especially if the project fails?
Capital guarantee is not an option as mentioned in the Shariah Issues section. A profit equalization reserve is possible but not currently available with Ethis. Therefore it is advised that only surplus funds be invested in Ethis projects.

Can the investor at least be sure that the initial capital invested can be guaranteed?

No, it cannot be 100% guaranteed. It can be said that it is extremely unlikely for it to happen, but in the case of very extreme unfortunate circumstances your capital may be lost. We like to remind our investors that a guarantee is only as dependable as the entity that makes it. We trust guarantees from large banks because we believe they are very capable to pay back, but as time has proven, even some of the biggest players in the banking industry have fallen and taken the savings and investments of their customers with them.
At Ethis we invest in actual property and not the resale of property and we require developers to have a claim or ownership of the land before we channel investments to them. Keeping this standard helps us to have a right to profits from the land whenever it sold, even if it is much later than the date we project. So the more likely misfortune is delay in profits if the project is delayed, or a loss of some of the capital if the land and or project is sold at a loss for some reason.

What’s the method of risk management?
We screen the background of developers with great scrutiny in all projects. We have professionals with several years experience in the respective countries of the projects to first investigate the backgrounds of the developers before considering a project. Secondly, when we can we have a company we own or have affiliation with to become the co-developer of the project in order to hold the funds and make sure they are used properly as well as to monitor the progress of the project.

What is the reporting schedule for monitoring the project?
Frequent updates, at least monthly, especially when there is significant progress.

Is it possible to give investors a share in the Real Estate?
Not at this point. Currently, investors gain only the right to share profits with Ethis once the projects are sold to the end buyers. Giving a share would equate to equity crowdfunding and that’s not a service we provide.

What happens if a project is Shariah compliant when during the time of the investment, but after the exit it becomes Shariah non-compliant?
After the exit the investor has no affiliation or ownership with the project. The Shariah compliance of the use is the full responsibility of the owner.

Why not appoint a custodian to watch over the developer to make sure developers don’t run away with the money?
Currently our model is to use a company that we own or an affiliated company to enter into the project as a co-developer to serve the same function as a custodian.

What if a custodian was employed to manage the money in such a way that cash is disbursed in installments to the developers according to how much progress is made in the construction?
Our assigned co-developers do this for us.

Do the Indonesian home buyers get a title and the mortgage doc?
In Indonesia the end buyers of our projects are Islamic banks. Once the banks buy the houses they sell them with Islamic home loans to the buyers. In the case of Islamic mortgages, the bank and buyer share ownership first and the title remains with the bank. At the end of payment of the mortgage the title is transferred to buyer.

Is the ownership freehold?
Depends on the project. For most landed housing projects, the homebuyer makes the purchase with freehold status. For apartment units, it’s is usually strata-title.

Why do the developers come to Ethis instead of a bank?
There are several reasons. The most common is because our service is faster and simpler than banks. If the response from our investors is good, we can raise the money in a matter of days and we can have it in the bank account of the developer within a month. Our application process is simple we have and so are our terms (see above question: How are developers and projects screened). We don’t make the developers seeking funding jump through so many hoops like the banks do.

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