Musharakah Mutanaqisah (Diminishing Partnership)

MFLC Maal’s Musharakah Mutanaqisah lets you co-own and gradually acquire full ownership of assets through ethical Islamic financing.

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Purpose

Asset development and construction
Property acquisition and development
Infrastructure development projects

Eligibility

Age: Aged between 18 and 65 years
Contractor: 05 years’ experience in the field and shall be a registered contractor at MFLC
Guarantor with stable income source shall be included in the facility (for individuals)

Key Features

Finance Limit: Above MVR200,000
Collateral: Project based property
Tenure: Between 60 to 120 months (5 to 10 years)
Grace Period: 3 to 12 months
Equity: Minimum 20% of total project cost

Do I need to pay interest in these products?

No. Both products avoid riba (interest). Payments are structured as rental or asset purchase instalments under Shariah-compliant contracts.

What is Diminishing Musharakah?

Diminishing Musharakah is a co-ownership partnership where MFLC Maal and the customer jointly acquire an asset (e.g. home). The customer gradually buys out MFLC Maal’s share through agreed instalments until full ownership transfers to the customer.

How does repayment work in Diminishing Musharakah?

Repayment consists of two components:

Rental payment for using MFLC Maal’s share of the property
Purchase payment to acquire MFLC Maal’s share gradually.

What types of assets can be financed under Diminishing Musharakah?

Currently, MFLC Maal offers this product for Project, Asset and Residential properties. Other categories may be evaluated based on Shariah and operational approval.

Who is eligible to apply?

Applicants must be between 18 and 65 years of age with a verifiable income source. In the case of individual applicants, a guarantor with a stable source of income must be provided to support the facility. Contractors are required to have at least five years of experience and be registered with MFLC.

How do I apply for a Maal Product?

Application forms will be available from MFLC Head Office, hulhumale’ office and also can be downloaded from our website via the Downloads section on our website : www.mflc.mv

Submit the required documents to one of our branches (male’ or hulhumale’) or email all documents to apply@mflc.mv

How long does it take to process a facility?

If all the required documents are in order, on average, it takes between three to five working days to process.

What is MFLC Maal?

MFLC Maal is the Islamic financing division of MFLC offering Shariah-compliant products to support customers’ asset and home financing needs without involving interest-based transactions.

How does MFLC ensure Shariah compliance?

MFLC Maal products are structured under globally recognised Islamic contracts such as Diminishing Musharakah and Ijarah, approved by our Shariah Committee.

How can I contact MFLC?

You can contact us from our land line number 3315605/3315606

For any requests or any information you can communicate with us via info@mflc.mv