Murabahah Financing
Type
- Asset-Based Financing
Payment Structure
- Cost plus profit margin declared to customer. Can be done on cash or deferred basis.
Eligibilty
- Available for businesses needing working capital or procurement of goods.
Compliance
- Compliant with Shariah law, goods must exist and be owned by seller.
Musawamah Financing
Type
- Asset-Based Financing
Payment Structure
- Price declared without reference to cost.
Eligibilty
- Suitable for businesses requiring working capital or procurement of goods.
Compliance
- Compliant with Shariah law, but no obligation to disclose cost/profit.
Trade Related Facilities (Murabahah)
Type
- Trade Financing
Payment Structure
- LC Sight, LC Usance; tenure for LC Sight and Usance not to exceed 365 days.
Eligibilty
- Available for trade-related financing, typically short-term.
Compliance
- Compliant with UCP 600 guidelines for Letters of Credit.
Diminishing Musharakah Financing
Type
- Co-ownership Financing
Payment Structure
- Monthly, quarterly, or semiannual payments for rental and principal.
Eligibilty
- Commercial customers, limited to 20 years max tenure.
Compliance
- Compliant with Shariah law, co-ownership, gradual transfer of asset ownership.
Kafalah (Bank Guarantees)
Type
- Guarantee Service
Payment Structure
- Case-to-case approval by the concerned committee.
Eligibilty
- Available for businesses requiring guarantees for performance, mobilization, financial repayment, etc.
Compliance
- Shariah-compliant as per the approval process, contingent on the agreement of the concerned committee.
Ijarah
Type
- Leasing
Payment Structure
- Payments are made as per the rental agreement.
Eligibilty
- Corporate, commercial, SME, and retail customers.
Compliance
- Compliant with Shariah law, lessor retains ownership; lessee responsible for risks.
Istisna
Type
- Asset-Based Financing
Payment Structure
- Payments can be made in installments or lump sum, based on agreement.
Eligibilty
- Available for manufacturing, assembling, or constructing goods.
Compliance
- Compliant with Shariah law, payment in full upon goods completion or manufacture.
Salam
Type
- Commodity Financing
Payment Structure
- Payment in full in advance at spot for homogenous goods delivered later.
Eligibilty
- Available for manufacturers or suppliers of homogenous goods.
Compliance
- Compliant with Shariah law, payment in full in advance for future delivery of goods.
Murabahah / Musharakah IERF
Type
- Export Financing
Payment Structure
- As per SBP criteria, the facility is available for export businesses.
Eligibilty
- Available for export businesses.
Compliance
- Compliant with SBP criteria for Islamic export refinance facilities.