US-based Blossom Finance recently launched a fund that will lend local-currency on the Indonesian island of Java via Permodalan BMT (PBMT) Ventura, a provider of technical and financial services to Baitul Maal wat Tamwil (BMTs), financial institutions that follow Shariah, Islamic law. PBMT Ventura invests in BMTs that mainly serve market vendors.
Jamil Abbas, a general manager at PBMT Ventura, said, “Ramadan is by far the busiest season for most BMTs within our network. Local businesses experience a huge surge in demand for financing coinciding with the holiday. Funds from Blossom Finance’s platform will help BMTs in our network meet that season demand for working capital.”
BMTs provide savings and loan services primarily to people who do not use traditional banks. In keeping with Islamic law, BMTs employ arrangements such as profit-sharing in lieu of conventional interest charges. BMTs also disburse a portion of their profits to their customers and to address community needs, often via social enterprises.
The new fund is Blossom’s first microfinance fund that is open to investment from the public. The minimum investment is USD 1,000, although US-based investors must be accredited in order to participate. Blossom is accepting investments into the fund in US dollars as well as the cryptocurrencies Bitcoin, Bitcoin Cash and Ethereum. In testing its platform since 2015, Blossom generally has returned investors annualized profits around 7 percent with terms of six to 12 months.
Sources and Additional Resources
Direct contact with Blossom
Blossom press release
https://blossomfinance.com/press/bitcoin-ethereum-islamic-microfinance-fund-opens-to-public
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