Consumer & Retail Banking
Consumer & Retail Banking
Dec 27, 2017

The Difference of Interest and Profit Sharing

In the banking world there are currently two types of Banks namely Conventional Bank and Sharia Bank. Both types of Banks certainly have different systems, one of which is the difference in terms of profit sharing system with its customers. In Conventional Bank this system is known as Interest while in Syariah Bank known as Revenue. In a previous article, Bank Muamalat has discussed the difference between KPR Syariah and KPR Conventional, so this time Bank Muamalat will give description about the difference of Interest and Profit Share which can be seen through the following table:



Profit Sharing

1.     Determination of the interest rate made at the time of the contract with the guidance must always be a profit

1. The determination of the ratio of profit sharing shall be made at the time of the contract based on the possibility of profit and loss

2.     The amount of percentage is based on the amount of money (capital) that is lent

2.  The amount of profit-sharing ratio is based  on the amount of profit earned

3.     Fixed interest payments as promised without consideration of whether the project run by the customer profit or loss

3.   Profit sharing depends on the profits of the project being run if it does not gain profit then the loss will be shared by both parties

4.     The amount of interest payments does not increase even if the number of profits doubled

4. The amount of profit sharing increases according to the increase in the amount of income


Thus a brief description of the difference of Interest and Profit Sharing by Bank Muamalat, hopefully the picture is useful to increase the wealth of knowledge about Bank Syariah and help the needs of the Indonesian Community in carrying out daily banking activities. To view the products of Bank Muamalat Indonesia, please visit the Products page here




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