Returns and settlement for investors
When a note settles, you receive principal plus any net profit and any applicable Ta'widh. Profit is not interest, and no return is guaranteed.
How profit is counted
A note has a tenure — how long the financing is meant to run, normally from disbursement (when money is paid to the issuer). The marketplace Up to or p.a. figure is an advertised annualised gross rate before the service fee, if the note runs its full tenure.
Profit is calculated for the days it actually runs. If the note is settled early, those days are fewer, so gross profit is lower than a full-tenure illustration. The advertised annual rate is a way to compare listings. It is not a promise that you will earn that rate, or that the note will run the full tenure.
Service fee and principal
CashSouk deducts a service fee from contractual gross profit only. The fee is not taken from principal. The rate is the one shown for that note in the prospectus and on the Settlement breakdown. This article does not quote a rate because it is set per note.
You receive net profit after that deduction. Principal is returned separately as Principal returned.
Ta'widh
Ta'widh is late-payment compensation. It is separate from contractual profit and is not subject to the service fee. It appears only when it is allocated on settlement.
Illustrative example
The numbers below are invented so you can follow the arithmetic. They are not a CashSouk rate, a quote, a forecast, or an offer.
- Commitment (principal): RM 1,000
- Advertised annual rate shown on the card: 12% p.a. gross, before the service fee
- Days profit actually ran: 90
Gross profit = RM 1,000 × 12% × (90 ÷ 365) = RM 29.59
The service fee is then taken from that RM 29.59 at the rate shown for the note. This example does not apply a fee percentage. Net profit is whatever remains after that deduction. You would also receive the RM 1,000 principal, plus any Ta'widh shown on the breakdown.
If the note had run a different number of days, only the day count in the formula would change. Early settlement uses fewer days.
What you will see
On the position, Settlement breakdown lists:
- Principal returned
- Gross profit (before fee) when it applies
- Service fee deducted
- Net profit received
- Ta'widh compensation when it applies
- Total received
Investment Settlement Confirmation becomes available when the confirmation PDF is ready. You can View or Download it. A Settlement Posted notice appears when settlement is posted.
Arrears and default
Note in Arrears means repayment is late. Your Investment Is in Default means the note has been marked as default. CashSouk will update you as servicing continues. Recovery timing and amounts are not guaranteed. Watch the position and your notifications.
Common questions
Why is my profit lower than the Up to rate?
The card rate is annualised and gross. Profit uses actual days and then the service fee. Early settlement reduces the day count.
Is Ta'widh part of profit?
No. It is late-payment compensation shown on its own line.
When is cash back in my balance?
After settlement is posted and the return appears under Transactions as Investment returns. Timing after posting depends on payout processing.