Loan Brokerage Marketplace Model

A faith-based loan brokerage marketplace that provides Sharia-compliant mortgages to Muslim customers in North America, connecting investors with borrowers while taking a transaction fee without holding the loans themselves.

Key Points:

• Target Market:

  • Muslim population in US (~22 million) and Canada
  • Focus on "super prime" applicants (doctors, lawyers, professionals)
  • Currently underserved by traditional banks

• Business Model:

  • Two-sided marketplace:
    • Investors provide capital for loans
    • Borrowers seeking Sharia-compliant mortgages
  • Revenue: 1-2% transaction fee per loan
  • Average mortgage size: $500,000
  • Each mortgage worth about $20k/year in fees

• Current Traction:

  • $10M committed from investors
  • $1.2M in bank
  • ~1,000 applicants in pipeline
  • Can currently fund about 20 mortgages

• Competitive Advantage:

  • Similar models working successfully in UK, Africa, Indonesia
  • No major competitors in US/Canada
  • Customers willing to pay premium for faith-compliant financing
  • Spent 1-2 years developing compliant financial mechanisms
  • Approved by religious leaders (Sharia law compliant)

• Structure:

  • Not a traditional bank - no deposits
  • Acts as broker between investors and borrowers
  • Uses other people's money (OPM) for loans
  • Doesn't require banking license