Product Name |
Mode |
Type of Product |
Basis for Pricing |
Tenors |
Target Customers |
Al-Makhraj Car Ijarah |
Ijarah Wa Iqtina |
consumer |
Rentals can be fixed or variable linked with the bench mark having floor and cap |
1-5 Year |
Individual and Corporate clients |
Al-Makhraj Equipment Ijarah |
Ijarah Wa Iqtina |
SME, corporate |
Rentals can be fixed/ variable linked with the bench mark having floor and cap |
1-7 Year |
Small, Medium Enterprises / Corporate clients |
Al-Makhraj Diminishing Musharka Equipment Financing |
Musharaka |
SME, Corporate |
Rentals can be fixed or variable linked with the bench mark having floor and cap, Rentals can be changed from time to time or at fixed intervals. |
3-7 Year |
Small, Medium Enterprises / Corporate clients |
Murabaha Financing (Local/Foreign) |
Murabaha |
SME, Consumer |
Profit is allocated either on the basis of percentage over the cost or in lump sum by applying the method of profit on average investment, based on payment schedule or terms of payment already agreed upon. The recurring expenses of future dates, till the last delivery according to payment schedule under pledge arrangement, shall also beincluded as a part of profit. |
Mostly allowed for less than one year, before introduction of Ijarah facility. |
Small, Medium Enterprises / Corporate clients |
Islamic Finance Against Foreign Bills (IFAFB) |
Murabaha / Musawama |
SME, Corporate |
Linked with matching KIBOR + spread to be agreed with the customer. OR - Applicable Export Bill Discounting Rate quoted by treasury will be used - The bank‟s profit is built in the buying and selling spread of the foreign currency assuming that the FX position in squared simultaneously |
180 days |
Small, Medium Enterprises / Corporate clients |
Islamic Export Refinance Scheme (IERS) |
Murabaha / Musawama |
SME, Corporate |
Islamic Bank shall fix weight-age for sharing profit by State Bank Of Pakistan at the beginning of each month. Fixation of weight-age shall normally be based on the prevailing mark up rate on export finance fixed by State Bank Of Pakistan, in conventional banking. |
180 days |
Steady Clients / Small, Medium Enterprises / Corporate clients |