IFB Financing Facility

Experience seamless financial solutions tailored to your needs

—— Murabaha Financing ——

Your Path to Interest-Free Business Expansion and Working Capital Solutions.

Murabaha Financing —

Your Path to Interest-Free Business Expansion and Working Capital Solutions.

Definition

An interest-free Islamic financing product, facilitates a transaction between a seller (bank) and a buyer (customer) based on an agreed cost and profit margin for a specific asset.

  • Shariah-Compliant Business Engagement (Halal Business)
  • Provision for Working Capital and Immediate Financial Needs
  • Flexible Repayment Terms: Monthly, Quarterly, Semiannually, or Lump Sum
  • Regular Repayment Structure Includes Principal and Profit Mark-Up
  • Fixed and Known Price of Goods and Bank’s Profit at the Time of Contract
  • In Islamic finance, Murabaha financing replaces conventional loans.
  • Referred to as cost-plus financing, Murabaha includes a profit markup instead of interest.
  • The transaction’s price, including the cost of goods and the bank’s profit, is fixed and known to both parties at the contract’s initiation.
  • Seller and buyer agree on the cost and markup, with payments typically made in installments.

—— Revolving Qard Interest-Free Export Financing ——

providing flexible financial support for exporters to thrive and grow without the burden of interest charges

Revolving Qard Interest Free Export Financing —

providing flexible financial support for exporters to thrive and grow without the burden of interest charges

Definition

A service designed for exporters, offering financial support without any profit charges.

  • No profit charges applied to provided funds.
  • Encompasses stages from raw material purchase to transportation.
  • Requires a valid sales contract and irrevocable export letters of finance.
  • Repayment determined based on the equivalent of foreign exchange buying rate.
  • Specifically tailored to support and facilitate export-related activities.
  • Covers various expenses related to the purchase of raw materials, processing, converting into finished goods, warehousing, packing, and transportation until goods are ready for shipment.
  • To avail the facility, exporters need to provide a valid sales contract and irrevocable export letters of finance.

—— Murabaha Diaspora Mortgage Financing ——

Explore interest free service with benefit from flexible repayment options and a mutually agreed profit rate on specified assets.

Murabaha Diaspora Mortgage Financing —

Explore interest free service with benefit from flexible repayment options and a mutually agreed profit rate on specified assets.

Definition

A Shariah-compliant financing solution designed for non-resident Ethiopians or foreign nationals of Ethiopian origin who have been living abroad for at least one year.

  • Adherence to Shariah principles is ensured through the Murabaha mode of financing.
  • The financing involves the sale of specific assets, including mortgages and vehicles.
  • The profit added to the purchase cost is determined and agreed upon by both parties.
  • Borrowers have the flexibility to choose between lump-sum repayment or equal installments.
  • The price of goods and the bank’s profit are fixed and known at the time of the contract.
  • Qualification requires the presentation of a residence and/or work permit from the country of residence.
  • The financing option involves the sale of specified assets, including mortgages and vehicles.
  • The profit rate added to the purchase cost is mutually agreed upon.
  • Repayment is structured according to a defined schedule, offering flexibility with lump-sum or equal installment options.

—-Interested in Having One?

GET YOUR IHSAN BANKING ACCOUNT IN EASY STEPS

1.

1.

Prepare Required Documents

Identification card: e.g. Passport, kebele id, driving license,…

Photo: – Two passport size photos

2.

2.

Visit our Nearest Branch

Once you have gathered your documents, visit your nearest branch.

3.

3.

Fill our Customer Application Form

Fill out the application form today and get ready to experience banking like never before.