Cultivated Crop Land
1) Since this is a Murabaha contract regarding ownership of cultivated cropland, there is no provision for emergency exit for investors. We will register the 6 shatak (in Bengali) land in the investor's name and assist in the cultivation, growth, and sale of the grain. Furthermore, it presents an opportunity for the owner to suggest a specific grain to cultivate on the land, and they can also take grains for their own needs. In this scenario, we assist in cultivating the specified crop and deliver the grains to the owner's house. Therefore, we cannot return your investment amount before the project closure.
2) Duration of Investment
The total investment amount will be - 5,27,00,000
This investment will be for a lifetime.
3) Projected ROI(Return of Investment)
The return on investment (ROI) will be 40% annually. In six (4) months, the investor will receive a halal dividend of 13.33%, equivalent to 39,990 tk (excluding service charges).
4) Investment Part
Minimum investment required would be 3,00,000 tk, and the halal dividend would be disbursed every four months.
For example, if someone invests 1,00,000 tk (One lac taka), they will receive 1,40,000 tk excluding service charges (1,00,000 tk as the investment part and 40,000 tk as the profit part in a year).
5) Loss Sharing
Grow Up operates under Shariah principles, and according to the Murabaha principle, investors bear no responsibility for any business losses after the land is handed over to the Grow Up Authority. Hence, there will be no loss sharing from the business after the land is transferred to Grow Up. This is because the Grow Up team will operate here as a lessee, working on behalf of the investor.
6) Service Charge
Grow Up will apply a 5% service charge on investors' profit. It should be noted that all of the mentioned ROI above are provided after excluding this service charge.
7) Contract Conditions
The investor will enter into a Murabaha Agreement with Grow Up for Cultivated Crop Land Ownership, which involves buying land in the investor's name, benefiting from cultivation on the land, and receiving dividends every four months from the sale of grain produced on the land. Grow Up will serve as an agent for the investors, assisting them in purchasing cropland, cultivating it to grow grains on behalf of the investors, and selling those grains to merchants.
8) Risk Factor
According to our calculations, although the risk factor stands at 3%, GrowUp's highly expert team is equipped to handle these matters, as mentioned above. Furthermore, upon the land Orchard owner's request, we can also ensure an insurance policy.
9) Payment Delay
Grow Up has conducted an in-house analysis of the projected returns of the business and expects to be able to repay on time, barring any unforeseen risk factors.
10) Security
Grow Up provides the following documents to investors:
- Land registration in the owner's name
- Contract Deed (300 tk Stamp)
- Security cheque
- Money Receipt
- Guarantor
- Copy of Authorized deed
- Insurance