Financing products are those products offered by the Bank in which Bank takes exposure (Risk) on the client. There are three types of lending products offers by the Bank:
Purchase and sale of goods:
The Bank purchases goods on cash basis and sell to client on deferred, on cost plus Profit, basis.
Purchase and Lease / Ijarah:
The Bank purchase fixed asset, either from market or from client, and leases / makes Ijarah of the same to client for the specified period.
Joint Purchase and Lease / Ijarah:
The Bank and client jointly purchase fixed asset and then Bank leases / make Ijarah of its portion of ownership to the client for the specified period.
Funds for manufacturing:
The Bank provides financing to client for manufacturing the goods required under confirmed sale order of the client’s client.
The Banks provides funds as partner to run the specific segment of business for specific period. The Profit and loss will be calculated in agreed manner.