Interest free by structure, not by slogan

Every SahulatKar plan uses two separate contracts, each with one clear job, so there is no gray area in between.

• Wakalah, the agency contract: you appoint SahulatKar as your Wakeel, your agent, to buy the exact item you chose from the store you chose.
• Murabaha, the cost plus profit sale: once the item is bought, SahulatKar sells it to you at its cost price plus a fixed profit margin that is shown to you in full.

That is the entire mechanism. SahulatKar earns from a genuine trade markup on a real item, not from lending you money and charging you for time. Ownership of the item passes to SahulatKar first, however briefly, and only then passes to you under the Murabaha sale. That order of events is what separates a trade from a loan, and it is why the two contracts are kept distinct rather than collapsed into a single agreement.

This is also why the profit is called a profit and not a fee. A fee is charged for a service regardless of what happens to an underlying asset. A trade markup is earned specifically because ownership of a real, identifiable item changed hands. The distinction sounds technical, but it is the entire basis on which a Murabaha sale is treated differently from an interest bearing loan under Islamic commercial law.

The two contracts are not abstract paperwork. They map onto a specific sequence of events, each one visible to you as it happens:

• You choose a specific item, at a specific store, at a specific price, and request financing for it.
• You sign the Wakalah agreement, appointing SahulatKar as your agent to buy that exact item on your behalf.
• SahulatKar, acting as your agent, completes the purchase from the store. At this moment, ownership of the item passes to SahulatKar.
• SahulatKar then offers to sell the item to you under a Murabaha contract, disclosing the cost price and the profit margin separately.
• You review the full price breakdown and sign the Murabaha sale. Ownership of the item now passes from SahulatKar to you.
• You take delivery and begin repaying the agreed installments, whether that is Pay in 4 or a 3, 6 or 9 month Pay Monthly plan.

Every step in that sequence is timestamped and recorded. If you ever want to understand exactly when ownership passed for a specific order, that record is what answers the question, not a general statement about how the product works.

The profit margin on a Murabaha sale is fixed at the moment the contract is signed, as a specific rupee amount tied to that specific item and that specific plan length. It is not a rate applied to a running balance, which is the mechanism that allows conventional interest to compound over time.

Because the profit is a fixed amount agreed once, there is no daily, monthly, or annual rate being recalculated against what you still owe. Paying an installment late does not cause the remaining balance to start accruing additional profit. The only additional amount that can ever apply is the disclosed late fee, and, as covered on a separate page, every rupee of that fee is routed to charity rather than kept as revenue.

If you choose to settle a plan earlier than scheduled, SahulatKar may, at its discretion, offer a voluntary rebate on the remaining profit. This is known in Islamic finance as Ibra, a discretionary waiver rather than a contractual obligation, and it reflects the same principle behind the rest of this structure: your price should never be worse for having paid us back sooner.

Your cost price, the profit amount, and the profit percentage are written into the contract itself. They cannot rise later, cannot compound, and cannot reappear as a processing fee or a service charge.

Whatever plan length you choose, the total you agreed to on day one is exactly the total you pay by the final installment. There is no small print that changes that number. On a Pay in 4 plan, that means the first installment collected at checkout and each of the three that follow add up to the exact figure you saw before signing. On a 3, 6 or 9 month Pay Monthly plan, the same rule applies across however many installments you chose.

This is also why SahulatKar does not offer a variable rate product of any kind. A variable rate, by definition, means the total cost is not fully known at signing. That is incompatible with a Murabaha sale, where full disclosure of the price is a condition of the contract being valid in the first place, not just good customer practice.

Our contract structure follows the SECP Islamic Finance Guidelines and AAOIFI Shariah Standard No. 8 on Murabaha. Every contract template must pass a recorded compliance review before it is used with a single customer.

That review checks each template against the essential conditions of a valid Murabaha sale: that the item is real and identifiable, that SahulatKar takes on genuine ownership risk for however brief a window, that the cost and profit are disclosed separately rather than bundled into one number, and that the profit is fixed rather than a running rate.

We are building our Shariah governance in the open. SahulatKar is completing its licensing, and as our Shariah advisory board is formally appointed, its scope and rulings will be published on this page. Until then, we describe exactly how the product works rather than claim a certification that has not yet been issued. If a formal ruling ever requires a change to how a contract is structured, that change will apply going forward and will be reflected here, not left as an asterisk in a terms document nobody reads.