Musharakah Mutanaqisah Term Financing-i (Diminishing Partnership)

Musharakah Mutanaqisah Term Financing-i (Diminishing Partnership)

Musharakah Mutanaqisah Term Financing-i (MMTF-i) is a term financing that used to finance the purchase of the landed or non-landed assets, completed or under construction, especially when the customer have already executed the Sale and Purchase Agreement for the intended asset such as business premises, land, factory premises, and have paid a portion of the Purchase Price for a long term financing with fixed or variable profit rate.

Shariah Concept

MMTF-i is structured under the Shariah concept of Musharakah Mutanaqisah or known as Diminishing Partnership. Under this concept, the customer and the Bank will jointly participate in the ownership of an asset. The equity of the Bank will be divided into the musharakah units and the customer will purchase the Bank’s unit. As the installment progressed, the customer’s ownership increase, while the Bank’s units representing its ownership of the assets will diminish until the customer owns 100% of the asset. MMTF-i also adopts Shariah concept of Ijarah whereby throughout the tenure, the Customer leases the portion of the asset that the Bank owns, Customer pays monthly installment for the purpose of purchasing the Bank’s unit as well as rental.


  1. Sole Proprietors
  2. Partnerships
  3. SMEs
  4. Private & Public Limited Co
  5. Government / Statutory Bodies


  1. Acquisition and co-ownership of completed landed and non-landed asset, completed under construction.


  1. Competitive pricing rate and margin of financing
  2. Flexible Payment Period
  3. Globally accepted Shariah concept used


With your financial needs well taken care of, our promise to you is that we'll stand by your side throughout our relationship. At AFFIN ISLAMIC, we become your trusted confidant the moment you share your vision with us.

For more details, please contact our Contact Centre at 03-8230 2222, or visit the nearest AFFINBANK / AFFIN ISLAMIC branch today.

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