The Truth Behind Our Model

At Zaylo, we don’t self-declare halal. Our model, agreements, and review process are all verified and continuously reviewed by certified Shariah Advisors. These advisors have full visibility into:

• Every type of contract used between investors and businesses
• How profits and losses are calculated
• What businesses are screened or rejected

We follow AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) guidelines — the global gold standard for halal finance.

Yes — 100%.

There are no fixed interest, no guaranteed returns, and no lending. Zaylo follows a partnership model, not a lending model. You are not giving a loan to a business; you are becoming a temporary non-managing partner in their trade or project.

• • If the business earns profit, you share the profit.
• • If the business faces loss, you share the loss proportionally.

This is what makes it riba-free (interest-free) and Shariah-valid — the outcome depends on real business performance, not pre-decided amounts.

Here’s how Zaylo ensures trust and accountability:

• 🛡️Business Verification: Only vetted, registered SMEs can raise capital. Each business undergoes KYC, GST check, address verification, and financial screening.
• 🛡️Capital Control: Funds never go directly to business owners. They’re held with our payment gateway escrow partner and released in stages after verification.
• 🛡️Cycle Tracking: Each deal has a live status inside the app, so investors can see updates.
• 🛡️Shariah & Audit Oversight: Our Shariah Advisor and compliance partner monitor deal flow to prevent misuse.

There are no profit or capital guarantees — because guarantees in partnership would make it a loan, not halal finance.

However, we minimize risk ethically, not artificially:

• Each business is screened for halal compliance, performance history, and genuine working capital need.
• Zaylo only allows businesses with strong trade history and verified accounts.
• Each cycle is short (around 1 month), so exposure is limited.
• Losses, if they occur, are shared fairly and transparently.

That can happen in real trade — if a business operations is delayed, payment is late, or audit verification takes longer.

Zaylo has a built-in monitoring and escalation process:

• The business must update Zaylo if their cycle extends.
• Zaylo’s operations team verifies the delay and reports status to investors transparently.
• The Shariah and compliance team ensures there’s no misuse of funds.

Yes — transparency is non-negotiable in our model.

For every completed business cycle:

• You’ll see a summary report of the actual business performance (revenue, expenses, and net profit).
• These reports come directly from audited SME records and are cross-checked by Zaylo’s finance team.

SMEs in India that:

• ✔Operate in ethical industries (no alcohol, gambling, riba-based services, speculation, etc.)
• ✔Have real business operations (trading, manufacturing, services)
• ✔Are open to sharing P&L reports and transparent working capital cycles

Zaylo is NOT a bank or NBFC.

We are a technology platform that connects parties for partnership-based funding. Fund transfers are executed via licensed payment partners and governed by digital agreements between users.