Diminishing Musharakah

Q: What is Diminishing Musharakah?

Diminishing Musharakah is a Shariah-compliant partnership financing model where Amal Takaful and you jointly purchase an asset. You gradually buy out our share over time until you become the full owner.

Q: How is it different from a normal loan?

Unlike a loan:We start as co-owners of the asset.You make payments that buy out our share, plus a small usage fee (rent) for the part we still own.No interest (Riba) is charged — the arrangement is 100% halal.

Q: What kinds of assets can I finance?

Vehicles (e.g., delivery vans, motorbikes, tractors)Business equipment or machineryReal estate (land, shops, houses)Other long-term, income-generating assets

Q: How does the repayment work?

Each payment you make has two parts:Buyout portion – reduces Amal Takaful’s share.Usage fee (rent) – paid only for the share Amal Takaful still owns.Over time, our ownership reduces, and yours increases — until you own 100%.

Q: Do I pay rent forever?

No. The rent reduces as our share reduces. Once you fully own the asset, rent stops completely.

Q: What happens if I can’t pay on time?

We do not charge interest or penalties. Instead, we will restructure your repayment plan to ease the burden while keeping the agreement Shariah-compliant.

Q: Can I sell the asset before I finish buying it out?

Yes, but only with Amal Takaful’s consent, since we are co-owners until you complete the buyout. The sale proceeds would be divided according to ownership shares at that time.

Q: How fast is approval?

Most applications are processed within 5–7 working days, depending on the asset type and supporting documents.

Q: What types of projects or assets are not eligible?

Assets linked to haram industries (alcohol, gambling, pork, etc.) or speculative activities are not eligible under Shariah.

Your Path to Home Ownership

Diminishing Musharakah is a unique and Shariah-compliant way to finance the purchase of a major asset, such as a home. It's a co-ownership agreement that gradually transfers full ownership to you.

Joint Ownership

Start as co-owners with Amal Takaful

Gradual Buyout

Ownership shifts fully to you over time

Shariah-Compliant

Full-ethical, only fair profit and rent

What Is Diminishing Musharakah?

Diminishing Musharakah is a partnership-based financing model where:

We jointly purchase an asset with you.
You make regular payments to buy out our share gradually.
You also pay a usage fee (rent) for our share while we still co-own it.
Over time, you become the sole owner of the asset.

It’s like starting as co-owners — and ending as your asset, your full ownership.

Example:

You want to buy a motorbike worth TZS 1,000,000.

You pay TZS 200,000 upfront.

We pay the remaining TZS 800,000.

Every month, you pay us back in two parts:

A small rent for the part we still own.
A portion that buys out our share.

Each month, our share gets smaller and your share gets bigger.

After finishing all payments, you become the full owner of the motorbike.

No interest, no hidden costs — just a fair, gradual transfer of ownership.

Key Features:

We buy the asset together; you and Amal Takaful both own a share.
With every installment, you purchase more of our share until you become the sole owner.
Each payment has two parts: a fair rent for the share we still own, and a buyout portion.
Works for assets like property, vehicles, or machinery, with repayment tailored to your ability.

Diminishing Musharakah is a safe, ethical, and transparent way to own a home, giving you the peace of mind that comes with a Shariah-compliant financing solution.

How Diminishing Musharakah? Works

Joint Ownership

We partner with you to buy an asset (e.g., a house). We both own a share of it.

Lease & Purchase

You lease our share of the property from us and pay a regular rent. You also make additional payments to gradually purchase more of our share.

Gradual Transfer

With each payment, your ownership stake in the property increases, while ours decreases.

Final Ownership

Once you've purchased all of our shares, you become the sole owner of the asset.

Who Can Apply?

What You’ll Need to Apply

Start Today

With Diminishing Musharakah, you don’t just borrow — you partner. Step by step, the asset becomes fully yours.

Frequently Asked Questions (FAQ)

What is Diminishing Musharakah?

Diminishing Musharakah is a Shariah-compliant partnership financing model where Amal Takaful and you jointly purchase an asset. You gradually buy out our share over time until you become the full owner.

How is it different from a normal loan?

Unlike a loan:

We start as co-owners of the asset.
You make payments that buy out our share, plus a small usage fee (rent) for the part we still own.
No interest (Riba) is charged — the arrangement is 100% halal.

What kinds of assets can I finance?

Vehicles (e.g., delivery vans, motorbikes, tractors)
Business equipment or machinery
Real estate (land, shops, houses)
Other long-term, income-generating assets

How does the repayment work?

Each payment you make has two parts:
1. Buyout portion – reduces Amal Takaful’s share.
2. Usage fee (rent) – paid only for the share Amal Takaful still owns.
Over time, our ownership reduces, and yours increases — until you own 100%.

Do I pay rent forever?

No. The rent reduces as our share reduces. Once you fully own the asset, rent stops completely.

Do I need to pay a down payment?

Yes. You contribute an initial portion (e.g., 20–30%), and Amal Takaful covers the rest. This ensures shared risk and partnership.

What happens if I can’t pay on time?

We do not charge interest or penalties. Instead, we will restructure your repayment plan to ease the burden while keeping the agreement Shariah-compliant.

Can I sell the asset before I finish buying it out?

Yes, but only with Amal Takaful’s consent, since we are co-owners until you complete the buyout. The sale proceeds would be divided according to ownership shares at that time.

How fast is approval?

Most applications are processed within 5–7 working days, depending on the asset type and supporting documents.

What types of projects or assets are not eligible?

Assets linked to haram industries (alcohol, gambling, pork, etc.) or speculative activities are not eligible under Shariah.

Apply for Diminishing Musharakah

Apply Now in 3 Easy Ways. Choose the method that works best for you: