REMODELLING MUSHARAKAH MUTANAQISHAH CONCEPT: CASE HOME EQUITY REFINANCING

Hardiansyah Hardiansyah; Septiano Abdillah Baysonni; Wirman Wirman; Ade Wirman; Ade Ananto Terminanto

Authors

Hardiansyah University of Paramadina
Septiano Abdillah Baysonni University of Paramadina
Wirman University of Singaperbangsa Karawang
Ade Wirman University of Al Azhar Indonesia
Ade Ananto Terminanto UIN Syarif Hidayatullah

Keywords:

Musharakah Mutanaqishoh, Islamic Finance, Home Equity

Abstract

This paper aims to remodel musharakah Mutanaqishah to transform your home equity into real wealth without taking on debt and riba-free, compared with the existing Musharakah Mutanaqishah (MMQ) in the Islamic Financial Institution (IFI) model. This study uses secondary data and Islamic literature. We use simulation data to explain the proposed model. The calculation will be based on the risk-adjusted cost of capital for the capital eligible to finance. The results show that this proposed model through Islamic Finance can be an alternative financing method due to its ease and reliability, especially for Islamic fintech, which has a different business model from banking

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