Morabaha Finance
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Refers to an agreement with the buyer (client) to provide specific goods/commodity at a marked up price and determined period of payment. The essential feature is the goods commodity is purchased from a third party which is further sold to the buyer (client) for purpose of value addition/trading. The buyer (client) agrees to repay for the goods/commodity at deferred price which includes profit to the actual cost to the Modaraba.
Ijara (Leasing)
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Leasing is an agreement between two parties whereby one party (the lesser) uses the assets owned by the second party and pays rental on mutually agreed terms (rate, payment frequency & tenor). Equity participation in a business venture on profit & loss sharing bases. The profit can be shared on mutually agreed bases and the loss is shared on proportionate capital deployment.
Mushrika Fianace
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Musharika Finance permits the Modaraba to participate in the management of the business venture if desired.
Consumer Leasing/Finance
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A scheme for purchase of consumer products in collaboration with local manufactures. These products can be purchase on credit at attractive rates, under a monthly repayment plan, ranging between 1 to 2 years.
