Financing
Murabaha Financing – Working Capital
A financing arrangement for IFB customers for the purpose of financing current assets and aims at securing adequate liquidity position of the business entity.
Product Features
- The customer should be engaged in Shari’ah compliant business [Halal Business]
- Meet business’s working capital and immediate financial shortage
- Offered for the maximum tenure of three years or less
- Depending on the nature of the business and its cash flow pattern, the repayment can be in monthly, quarterly, semiannually or at lump sum.
- Regular repayment amount should include principal and profit mark-up.
Eligibility Requirements
- Maturity: 3 years
- Recent business registration documents, renewed business/investment licenses, TIN certificates, recent tax clearances; at least three preceding fiscal years’ financial statements and recent financial statement not-older than three months.
- Present acceptable and adequate collateral that sufficiently covers the Financing requested.
- Healthy credit relationship with other banks
- Financing requests for Birr 5.0 million and above should be backed by audited financial statements
- For more, refer the IFB Investment and Financing Procedure Manual
Murabaha Financing – Investment
A financing arrangement for IFB customers for the purpose of acquiring moveable and immovable properties aimed at supporting the investment needs of customers, which is offered with different modalities
Product Features
- The customer should be engaged in Shari’ah compliant business [Halal Business]
- Meet business’s needs for acquiring moveable properties
- Offered for the maximum tenure of five years or less
- Depending on the nature of the business and its cash flow pattern, the repayment can be in monthly, quarterly, semiannually or at lump sum.
- Regular repayment amount should include principal and profit mark-up.
- Maturity: up to 5 years
Eligibility Requirements
- Recent business registration documents, renewed business/investment licenses, TIN certificates, recent tax clearances; at least three preceding fiscal years’ financial statements and recent financial statement not-older than three months.
- Present acceptable and adequate collateral that sufficiently covers the credit requested.
- Healthy credit relationship with other banks
- Financing requests for Birr 5.0 million and above should be backed by audited financial statements
- For more, refer the IFB Investment and Financing Procedure Manual
Qard Pre-shipment Export Financing
A Financing arrangement for exporters which is extended to help them utilize the facility to finance the purchase, processing, manufacturing or packing of goods meant for overseas market.
Product Features
- Except for the terms and conditions that are not applicable to IFB, it is the same as the Export pre- shipment financing scheme in the Conventional Banking
- The facility is granted on the strength of bona fide [real, genuine] sales contract or export L/C opened in favor of the exporter or
- Could be availed in the form of secured/unsecured financing or lines of credit
- Enable exporters discharge their commitment by utilizing the advance for operating expenses related to the exporting activity
- Each advance shall be settled from the proceeds of the corresponding export L/C
- Maturity 4 month with a possibility of three month extension upon presenting acceptable reasons
Eligibility Requirements
- Recent business registration documents, renewed business/investment licenses, TIN certificates, recent tax clearances; at least three preceding fiscal years’ financial statements and recent financial statement not-older than three months.
- Client should have a minimum of 6 month experience and should present a sales contract/irrevocable export L/C
- Profitability analysis should be prepared for each sales contract
- New clients for the bank with 1 year of export experience and a transaction of USD 100,000 can be entertained
- Previous advance must be settled within the due date.
- Healthy credit relationship with other banks
- Financing requests for Birr 5.0 million and above should be backed by audited financial statements.
