IFB Financing

Interest Free Banking Financing Products

IFB financing is a mode of financing where BOA sells a specified asset at a mutually agreed profit rate added on the purchase cost to be repaid

Murabahah Financing

  • is a mode of financing where BoA sales a specified asset at a mutually agreed profit rate added on the purchase cost to be repaid. The payment will be a defined repayment schedule in lump sum or in evenly distributed installments; 
  • The price of goods and BoA’s profit on Murabaha transaction is fixed and is known by customers of BoA at the time of contract.  

Product Features and Benefits

  • Revolving financing facility
  • Merchandise financing facility
  • Import Letter of Credit facility
  • Pre-shipment export financing facility
  • Livestock Export financing
  • Motor Vehicle financing
  • Machinery and equipment purchase financing
  • Investment financing for enterprises operating in Industrial parks
  • Partial financing
  • Agricultural term financing
  • Import Letter of credit settlement financing
  • Financing/Loan Buyout

Bai’ salam Financing

Is a type of financing through which the Bank pays the full contract price of goods/commodities in advance at the time of contract for the purchase of goods/commodities that will be delivered by the customer/supplier at a specified time/date in the future. The Bank sells the same goods/commodities to a customer/third party through an independent Second Bai’ Salam Agreement.

Product Features and Benefits

  • This product shall be used to address the short term working capital requirements of farmers/producers/manufacturers of Goods/Commodities tradable on market
  • Purchase price in Bai’ Salam shall be fully advanced to the seller/customer at the commencement of the contract
  • Bai’ Salam arrangement shall not be used as a buy back facility where the seller in the first contract is also the purchaser in the second
  • The mark- up profit agreed will not be changed till the end of financing period
  • The tenure of the finance will range from one to three years or depending on the production cycle of the business

Quard Financing

A sum of money lent to be returned without any extra amount over and above the loan.

Guarantee (Kafalah)

  • Bid bond
  • Performance guarantee
  • Advance payment guarantee
  • Suppliers’ credit guarantee
  • Retention guarantee
  • Steamers’ guarantees/letters of indemnity for missing documents
  • Customs duty guarantee
  • Customs dispute settlement guarantee