The fintech arm of Southeast Asia’s first decacorn, Grab, will offer a Shariah compliant financing product to eligible Grab drivers and delivery partners, in collaboration with Islamic fintech company, Sedania As Salam Capital (SASC).
The introduction of Grab Cash Financing-i is a prime example of how agnostic fintech companies can play an instrumental role in delivering Shariah compliant financial solutions. In fact, Grab has been offering Takaful schemes for its drivers and partners in Malaysia.
Available to Grab partners earning as little as RM800 (US$190.65) a month, the financing is designed to lower the barriers to microfinancing, typically inaccessible to those below a certain income level and lack a formal credit history.
The solution was engineered using SASC’s GoHalal Finance Program, a platform facilitating the design or conversion of financial products to comply with Shariah. The program includes the Shariah certification process and advisory on documents, a ready-to-use Tawarruq platform that provides real-time 24/7 trading of digital commodities, digital agreements using automated digital Akad, a secured direct debit e-mandate, Takaful protection, digital marketing services and a financial marketplace.
Since introducing the program, Grab has seen a take-up rate of 16% among eligible Grab drivers and delivery-partners, according to Sean Goh, the managing director and head of Grab Financial, Grab Malaysia. The program was piloted last December.