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Islamic Banking Concept |
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Al-Wadiah Yad Dhamanah (savings with guarantee) |
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Refers to goods or deposits, which have been deposited with another person, who is not the owner, for safekeeping. As wadiah is a trust, |
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the depository becomes the guarantor and, therefore guarantees repayment of the whole amount of the deposits, or any part thereof, |
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outstanding in the account of depositors, when demanded. The depositors are not entitled to any share of the profits but the depository |
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may provide returns to the depositors as a token of appreciation. |
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Product Features: |
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• Depositors give their consent to the bank to deal with the whole or any part of the monies standing to the credit of their account in the |
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manner that the bank deems fit, so long as it is not against the Shariah. |
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• The bank guarantees repayment of the whole sum or any part thereof outstanding in the depositor’s account when demanded. |
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Other Website Links |
• The bank may provide a return to the current account holders as a token of appreciation (“Hibah” or a gift) for keeping their money with |
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the bank. However, such promise shall not be disclosed to the account holders. |
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Benefits |
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• Muslims have the option to comply with Islamic teaching when engaging in the financial activities so that they are not exposed to the |
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Financial Institutions |
element of “usury”/riba (interest) while for non-Muslims, will have the benefits of alternative mode of savings. |
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• Funds will be invested in activities governed by Shariah Consultant to ensure all the investment and activities are in accordance to |
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Shariah Principle. |
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Types of Account |
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Personal Account |
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Regulators |
• For individuals aged 18 years old and above. |
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Joint Account |
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• An account with more than one account holder. All joint accountholders must be 18 years old and above. |
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Associations |
Associations / Societies / Clubs Account |
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• Offered to all Non-profit Organizations and the operation of the account must be in accordance to the instruction in the resolution given by |
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the organization |
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Al-Mudharabah (profit-sharing) |
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Financial / Business Sites |
Refers to an agreement made between a party, who provides the capital and another party (entrepreneur), to enable the entrepreneur to |
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carry out business projects, which will be on a profit sharing basis, according to a pre-determined ratios agreed upon earlier. In the case of |
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losses, the losses are borne by the provider of the funds. |
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Investments |
Features and Benefits |
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Emphasize on equitable distribution of wealth through profit sharing concept |
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• Income is distributed based on profit sharing ratio e.g. 50:50, 60:40, 70:30 etc. |
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• Profit generated is distributed equally based on pre-determined profit sharing ratio. |
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Education / Training |
• Profit rates declared every 16th of the month |
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• Profit Rates based on month-to-month actual profit earned but payable on maturity or alternatively, determined at point of maturity. |
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Training ◄ |
Other Benefits |
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Other Sites |
• Muslims have the option to comply with Islamic teaching when engaging in the financial activities so that they are not exposed to the |
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element of “usury”/riba (interest) while for non-Muslims, will have the benefits of alternative mode of savings. |
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• Funds will be invested in activities governed by Shariah Consultant to ensure all the investment and activities are in accordance to |
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Shariah Principle. |
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Useful Contacts |
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Eligibility |
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• Individuals, corporations and non-profit organizations |
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Bai’ Bithaman Ajil (deferred payment sale) |
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Refers to the sale of goods on a deferred payment basis at a price, which includes a profit margin agreed to by both parties. |
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Features & Benefits |
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Subscribes to the concept of Multi-Tiered Rates |
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• Lower instalment payment for the first tier to assist customers in managing their budget. |
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Fixed Profit Rate |
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• Protection against the volatile interest rate environment prevailing under commercial banking. This will ensure certainty with no changes, . |
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no surprises to upset the customers’ budget. The customer is actually hedging your risks against possible rise is interest rate |
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Attractive Financing Package |
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• The financing allows customer to purchase or refinance the property to obtain extra funds for the children’s education fund, house |
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renovation, business expansion and even obtain extra funds for whatever your needs may be. |
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2 optional schemes of payment for property under construction |
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• Flexible payment for property under construction where you can either service Grace Period installment or opt for normal monthly |
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installment immediately. |
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Contracted Selling Price remains unchanged and no extra cost financing |
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• Able to know the total cost of financing and fixed installment payment |
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Eliminates the element of uncertainty |
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• Transaction is transparent & protected against the volatility of interest rates. |
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Eligibility |
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• As long as your appraisal status and financial standing are satisfactory. |
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• Individuals aged 18 years old and above. |
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• Sole-proprietorship. · Partnership. · Companies/ associations. |
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• Open to all Muslims & Non Muslims. |
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Al-Musyarakah (joint venture) |
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Refers to a partnership or joint venture for a specific business with a profit motive, whereby the distribution of profits will be apportioned |
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according to an agreed ratio. In the event of losses, both parties will share the losses on the basis of their equity participation. |
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Al-Murabahah (cost plus) |
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Refers to the sale of goods at a price, which includes a profit margin as agreed to by both parties. Such sales contract is valid on the |
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condition that the price, other costs and the profit margin of the seller are stated at the time of the agreement of sale. |
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Bai’ al-Dayn (debt trading) |
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Refers to debt financing, i.e. the provision of financial resources required for production, commerce and services by way of sale/purchase of |
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trade documents and papers. Only documents evidencing real debts arising from bona fide merchant transactions can be traded. |
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Al-Ijarah Thumma al-Bai’ (leasing and subsequently purchase) |
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Refers to two contracts undertaken and subsequently as follows: |
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i. Al-Ijarah contract (leasing/renting); and |
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ii. Al-Bai’ contract (purchase). |
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Under the first contract, the hirer leases the goods from the owner at an agreed rental over a specified period. Upon expiry of the leasing |
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period, the hirer enters into a second contract to purchase the goods from the owner at an agreed price. |
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Al-Ijarah (leasing) |
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Refers to an arrangement under which the lessor leases equipment, building or other facility to a client at an agreed rental against a fixed |
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charge, as agreed by both parties. |
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Al-Qardhul Hassan (benevolent loan) |
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Refers to an interest free loan. The borrower is only required to repay the principal amount borrowed, but he may pay an extra amount at |
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his absolute discretion, as a token of appreciation. |
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Bai’ as-Salam (future delivery) |
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Refers to an agreement whereby payment is made immediately while the goods are delivered at an agreed later date. It is equivalent to an |
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