General

The gathering of many people online to financially support a cause, business or individual. Each person giving a (small or large) fractional amount towards a fixed target amount.

The combination of the technology of crowdfunding with the structures of Islamic finance (Shariah-compliant).

Nusa Kapital is the “world’s 1st regulated Shariah-compliant P2P crowdfunding platform” operated by Ethis Kapital Sdn. Bhd., a Malaysian based FinTech company registered and regulated by Securities Commisions of Malaysia.

Projects will be updated on a monthly basis.

The most common reason is because our service is faster and simpler than banks. Our application process is practical and so are our terms.

We screen the background of potential Issuers with great scrutiny in all projects. We have professionals with several years of experience to first investigate the backgrounds of the potential Issuers before considering a project.

Using our proprietary risk scoring framework we further scrutinize and assess the Issuer and the project. Armed with these information, we innovatively find the best structure which would fit the Issuer’s requirement and minimize the risk for the Investors.

Our proprietary risk scoring framework is applied against every potential Issuer which looks at three broad categories – business risk, financial risk, and corporate governance risk.

Each subject category is given a score of 1 to 5 (1 being the least risky and 5 the most risky) and will be given an appropriate % weighting. The final weighted score will determine which risk category the business belongs to and whether or not we can fund the business. Only weighted scores of 3.5 and below is eligible for funding via Nusa Kapital.

Risk Scores
• 1.0 - 1.5 : Very Safe
• 1.5 - 2.5 : Safe
• 2.5 - 3.5 : Neutral
• 3.5 - 4.5 : Risky
• 4.5 - 5.0 : Very risky

The risk scores of the potential Issuers would be the yardstick to determine the funding amount and the required returns.

An Issuer will be in default if any of the following events occur:
• Commits any breach of its obligations under this Agreement or if such breach is remediable, fails to remedy such breach within three (3) Business Days from the service of a written notice by Ethis Kapital complaining of such breach.
• Provides any misleading, inaccurate, or false statement, information, data and/or documents or from which there is an omission which would affect Ethis Kapital assessment of the suitability of the Issuer to be hosted on the P2P Platform
• Becomes insolvent or unable to pay its debts (if applicable);
• Goes into liquidation or is wound up either compulsorily or voluntarily (except in the case of a voluntary liquidation for the purpose of reconstruction or amalgamation
• An overdue or delayed payment over 60 days.

Shariah Related

Islam is more than a religion; it’s also a way of life that contains a code of laws and ethics that deal with social, economic and political matters. Muslims are expected to live according to Shariah in all aspects of life.

Shariah places restrictions on the types finance and investments that are permissible for the Muslim community. Islamic finance can be defined as the body of financial contracts and rules that have been adopted from the rich heritage of scholarly research in Fiqh Muamalat (Islamic law of transactions) and modified to comply with modern banking regulations while remaining in accordance with the principles of Shariah.

In Islam money must be used in a productive way, and generating return on your money must be done through Islamically legitimate and ethical trade or investment. According to Shariah, group investments must include an element of risk sharing and ideally it should be confirmed that the investee will use the funds in a manner permissible in Islam.

Generating interest on money is seen as income through exploitation and is fully prohibited in Islam. Shariah also does not permit trade or investment in unethical industries or commodities, such as: arms, gambling, alcohol, conventional banking or insurance, non-halal food or beverages, non-Halal entertainment and more.

Yes, Nusa Kapital is fully Shariah-Compliant and pronounced by recognized Islamic certification bodies in Malaysia.

With any type of investment, risk is determined by several factors. Shariah and conventional investments need to be evaluated using the same risk management techniques such as analyzing the business plan of the project, the track record of the one seeking financing in terms of cash flow as well as debt repayment, etc.

For investments to be qualified as Shariah compliant however, there is an extra level of analysis that must be carried out to ensure the businesses that are seeking funding are adherent to the principles of Shariah. Investment in businesses involved in non-Shariah compliant industries or commodities, such as arms, gambling, alcohol, conventional banking or insurance, non-halal food or beverages, non-Halal entertainment and more, is not permitted by Shariah.

A key purpose for imposing Sharia is to promote social justice. Shariah is more concerned with ethical, social, economic, and political impacts of investments on the economy, society and environment.

It then directs investments towards responsible activity that benefits the abovementioned categories of concern. Conventional finance does not have the same ethical, environmental or social considerations as its primary objective is profit maximization.

Mudharabah:. A contract based on a fiduciary relationship between a capital provider/Investor (rabbul mal) and an entrepreneur/Issuer (mudharib). Under a Mudharabah, any profit generated from the capital is shared while financial losses are borne by the rabbul mal.

Murabahah refers to a sale and purchase of an asset where the acquisition cost and mark-up are disclosed to the purchaser.

Yes. The Islamic investment notes, including the contracts, were developed by Nusa Kapital and have been pronounced by recognized Islamic certification bodies in Malaysia.

Investor Related

Investors must:

• Be 18 years of age or older at the time of registering as an Investor (if the person is an individual).
• Declare whether they are subject to any investment limit. (Retail Investor – investment limit RM50,000 at any time)
• You must be an individual, LLP, limited company, public body or other legal entity;
• if you are investing in your capacity as an individual, you must have a permanent address in Malaysia;
• if you are a limited company, you must be incorporated under the laws of Malaysia under the Companies Act 1965 and having the permanent place of business in Malaysia;
• if you are a LLP, you must have a permanent place of business in Malaysia;
• if you are a public body, you must be registered or formed with the relevant authority in Malaysia;
• Provide a MBAN number if the Investor is an Angel Investor.
• Acknowledge that they read and accept the Warning Statement, Disclosure statement, Terms and Condition, and Privacy Policy.

Nusa Kapital Investors have a right to the returns or profits depending on the agreement within the contract. Payout occurs when the Issuer makes the relevant payment.

The general process is that Nusa Kapital Investors enter into a profit-sharing or revenue-sharing agreement with the Issuer of the project they choose to invest in. These sharing ratios are fixed, and the actual realised profits will thus depend on the sales and performance of the project the campaign is funding.

Nusa Kapital encourages the Investors to spread their investments into several campaigns concurrently. This will create a diversified portfolio with minimum risk and a healthy rate of return.
It then directs investments towards responsible activity that benefits the abovementioned categories of concern. Conventional finance does not have the same ethical, environmental or social considerations as its primary objective is profit maximization.

The attractive projected returns are based on conservative projections and are according to the returns as per presented for the respective campaigns hosted on Nusa Kapital.

The projected timeframes published have already factored in a buffer for delays but payouts may at times be delayed further due to business and external circumstances.

An Issuer is permitted to keep any amount which was raised through a hosting
on a P2P platform provided that the Issuer must have at least raised 80 per cent
of the target amount.

Notwithstanding the paragraph above, the Issuer is not allowed to keep any amount which exceeds the initial target amount. Any excess of the initial target amount shall be refunded to the Investor.

Registration to become a Nusa Kapital member or Investor is free. The only fees applicable are as follows.

 

Investor Fee Type Rate Description
Platform Management Fees 10% of Return Fees charged based on invested funds that are managed within the platform throughout the financing duration. To be charged upon collection of payout.
Withdrawal Processing Fees RM0.11 – RM1.00 Charges if applicable based on any charges by the bank (such as IBG, FPX). Will be charged upon successful withdrawal from Trust.
Type of User Description
Investor 1.       User fills up “Investor Profile” KYC Form based on any of the following approved legal entity for an Investor:
Type of Investor Eligibility Requirements Supporting Documents
Malaysian Investor (a)     18 years old and above; A copy of the identification card
(b)     a permanent address; and
(c)     a valid contact number.

 

Malaysian Company Incorporated under the Malaysian laws  

(i)      Form 9 (Certificate of Incorporation);or Application for Registration (Schedule A, Section 14)

 

(ii)     Latest Forms 24 and 49; or Return for Allotment of Shares (Schedule A, Section 78) and Notification of Change in the Register of Directors, Managers and Secretaries (Schedule B, Section 58)

(iii)    Memorandum and Articles of Association;
(iv)   Directors’ Resolution authorising the company’s representative to represent the company;
(v)    Copy of NRIC / Passport of the person authorised to represent the company;
(vi)   Copy of NRIC / Passport of the directors; and
(vii)  Bank Statement (not more than 3 months old).
Foreign Investor (a)      18 years old and above; A copy of valid passport
(b)      valid passport; and
(c)      a valid contact number.
Foreign Company The company must be registered in their own country.  

 

(i)    A copy of certificate of incorporation of the country of origin

 

(ii)   A copy of statutory forms that shows shareholders and directors representing the company


Yes. The name of the Issuer, as well as other significant information, is available for the respective campaigns on the platform.

For all type of Investors, the minimum investment amount is RM500.

The maximum amount will depend on the classification of Investors as follows :

• Retail Investor : A maximum of RM 50,000 at any period of time
• Sophisticated Investor : No maximum limit
• Insititutional / Angel Investor : No maximum limit

No. Upon the successful closure of the campaign (fundraising), the Issuer will only receive the funds within 3 business days from the time all agreements have been executed.

Ringgit Malaysia is the only currency denomination available at the moment. We will expand to other major currencies for the convenience of Investors and Issuers in the near future.

All investments shall benefit from the expected returns generated according to the relevant projects.

The frequency will depend on the campaigns offered. It may vary from monthly to quarterly or even annually repayments.

The expected return would largely depend on the campaign/project. We determine the expected return substantiated largely by the risk scoring (using our proprietary risk scoring framework), availability of risk mitigation components and track record of the Issuer with the platform.

Further reinvestment of repayments can compound the returns and shall improve the overall returns.

The default rate signifies the amount of funds in default compared to the total amount of campaigns successfully funded historically on the platform. This rate is prominently displayed on our platform for our users’ benefit. We strive to reduce this rate as low as possible.

In the exceptional event the default threshold is triggered, we will proceed with the Default Recovery Process where the Investors are offered with several options that they may elect to pursue through a majority vote (based on investment value):

 

Options Recovery Process
Funding restructuring a)     Restructure the Facility Agreement to allow for a longer payment term.

b)    Investor may require additional securities from the business to secure the payment of the rescheduled financing

Liquidate secured assets For a secured deal, legally liquidate secured assets at market value to recover for the loss in investment principal.
Legal actions a)     Subject to legal advice from our legal adviser, if there is proof of negligence in the use of investment funds, we may take legal action against the business and shareholders and/or directors.

b)    Legal actions may also be taken to require the business to surrender information, which may be crucial in determining its ability to repay its financial obligations.

c)     Any legal actions taken against the business will only be taken after getting Investor’s consent.

Nusa Kapital is a peer-to-peer crowdfunding platform which is regulated by the Securities Commission of Malaysia. We adhere to a strict set of guidelines which were established with the pure intention of avoiding any fraudulent acts.
The guidelines include from ensuring that proper due diligence are conducted on both Issuers and Investors, right to the stern management and handling of all funds by a “registered Trust company” (our appointed trustee is Pacific Trustee Berhad).

No. All investment will go directly into a trust account managed by a registered Trust company (Pacific Trustee Berhad). Any payments will then be made directly from the trust account to the relevant parties according the specific purpose of the investment.

No. The main purpose of placing the funds in the trust account is to ensure that the Investors’ and Issuers’ interest are protected from any fraudulent acts. We do not endeavour to earn any returns on the funds placed in the Trust account. However, returns on Investors’ monies in the trust account, if any, will be paid to the Investors accordingly unless otherwise notified in writing.

We have a clear set of procedures for such a scenario. Please refer to the Business Continuity Plan on the platform.

Immediately upon any delay in repayment, our collection procedure will kick in which includes repetitious calls, reminders and visits to the Issuer with the target of obtaining the repayment and avoid any default status.

Concurrently, any relevant penalty will be charged accordingly, and if necessary the Issuer’s delinquent status will be escalated to the relevant parties for blacklisting.

The Investor will be updated frequently of the progress until the status is resolved.

In the spirit of fairness to the Issuers, investments can only be opted out in the event of unsuccessful campaigns or material adverse changes on the Issuer side.

Should any default occur, Nusa Kapital will endeavour to retrieve any recovery cost (if any) from the Issuer on best effort basis. In the unlikely event there are still shortfalls, we will deduct from the recovered amount.

Nusa Kapital takes endless effort in analysing the risk related to each project and innovatively structure each campaign to maximize the probability of repayment and recovery. However, there will still remain a degree of risk involved.

Issuer Related

Issuer must :

• Be incorporated in Malaysia
• Either a sole proprietorship, partnership, incorporated limited liability partnerships, private limited company or an unlisted public company
• Meet any of the following :
o At least 1 year of operations
o Annual sales of at least MYR 300,000
o Positive free cash flow in the past year (free cash flow = operating profit + depreciation - tax - borrowing costs - capital expenditure)
o Copy of current invoice or purchase order (loan amount will be based on these)

Shariah places restrictions on the types finance and investments that are permissible for the Muslim community. Islamic finance can be defined as the body of financial contracts and rules that have been adopted from the rich heritage of scholarly research in Fiqh Muamalat (Islamic law of transactions) and modified to comply with modern banking regulations while remaining in accordance with the principles of Shariah.

In Islam money must be used in a productive way, and generating return on your money must be done through Islamically legitimate and ethical trade or investment. According to Shariah, group investments must include an element of risk sharing and ideally it should be confirmed that the investee will use the funds in a manner permissible in Islam.

Generating interest on money is seen as income through exploitation and is fully prohibited in Islam. Shariah also does not permit trade or investment in unethical industries or commodities, such as: arms, gambling, alcohol, conventional banking or insurance, non-halal food or beverages, non-Halal entertainment and more.

Repayments will be done directly to the designated Trust account.

The repayments are on monthly or bullet payment basis, subject to the offerings structure. However, from time to time, we may offer different types of repayment, as advised by the Shariah Adviser, for certain campaigns that may have a longer period of gestation

Type of Issuer Supporting Documents
Sole Proprietorship (a)  copy of the Business Registration Certificate; and

 

(b)  tax returns.

 

Partnership (a)  copy of Business Registration Certificate;

 

(b)  copy of NRIC / Passport of the person authorised to represent the company;

 

(c)  copy of NRIC / Passport of the directors; and

 

(d)  Bank Statement (not more than 3 months old).

 

Limited Liability Partnership (a)  copy of Business Registration Certificate;

 

(b)  copy of NRIC / passport of the person authorised to represent the company;

 

(c)  copy of NRIC / passport of the directors; and

 

(d)  Bank Statement (not more than 3 months old).

 

Malaysian Company (Private Limited or Unlisted Public Company) (a)  Form 9 or 8 (Certificate of Incorporation); or Application for Registration (Schedule A, Section 14)

(b)  Latest Forms 24 and 49; or Return for Allotment of Shares (Schedule A, Section 78) and Notification of Change in the Register of Directors, Managers and Secretaries (Schedule B, Section 58)

(c)  Memorandum and Articles of Association;

(d)  Directors’ Resolution authorising the company’s representative to represent the company;

(e)  copy of NRIC / Passport of the person authorised to represent the company;

(f)   copy of NRIC / Passport of the directors; and

(g)  Bank Statement (not more than 3 months old).

 

Upon successful closure of the campaigns, you will receive the funds within 3 business days after the legal agreements have been executed by all relevant parties.

In the event that the campaign is unsuccessful, we will consult with the Issuer on either withdrawal, extending the campaign period or restructure the campaign offering.

Issuer Fee Type Rates** Description
Processing Fee RM50.00 A one-time fee charged upon submission of documents.
Hosting Fee RM250.00 Fee charged upon hosting of the campaign on the Platform.
Maintenance Fee Up to 1% per Annum Fees charged annually at the end of each anniversary of the tenure of the investment until the repayment of the Investors’ Funds is fully repaid.
Service Fee (Wakalah Fee) 3% to 5% Fees charged by the Platform to Issuers upon successful funds raised. Fee will be based upon the following Risk Grading:
Risk Score Fee (% Fund Raised)
1 3%
1.1 – 2.0 4%
2.1 and above 5%
 Rate is determined by total funds raised. Amount calculated from the rate will be deducted from the investment disbursed.
Stamp Duty 0.5% Flat Rate Duty payable under the law. Fees charged by the Platform to Issuers upon successful funds raised. Amount is determined by the amount of funds raised. For example: if campaign hosted is RM100,000 but total investment achieved is RM 85,000. The duty payable would be RM85,000 x 0.5% = RM425.
Bank Charges (Other) RM0.11 – RM1.00 Charges if applicable based on any charges by the bank (such as IBG, FPX). Will be charged upon successful withdrawal from Trust.

Yes. You may apply for another campaign. But the applications would go through the assessment process again.

Yes.

  • In Murabahah, early repayment may come with a revision to reduce the profit rate. This may be effected by applying the principle of Ibra’ by the seller (the Investors) to the buyer (the Issuer).
  • In Mudharabah, early repayment may come with a revision to reduce the expected profit rate. This may be effected by applying one of the following mechanisms:
  • Tanazul of profit by the Investors to the Issuer upon realization of the profit; or

The revision of the ratios of profit/loss sharing for Mudharabah with mutual agreement between the Issuer and the Investors.

No. The campaigns will only be hosted upon acceptance of the offered terms and conditions by the Issuer.

It is mandatory for you to declare if you are receiving funds from another platform or financial institution. We will delicately assess to ascertain your eligibility for further funding.