Islamic Agricultural Financing:
Meezan Bank is considered as an innovator in Islamic Banking in Pakistan principally because of promoting extensive variety of Shariah-Compliant keeping money answers for provide food distinctive requirements of its clients. Following its reputation, Meezan Bank is presently offering Islamic Agricultural Financing Products to ranchers.
Meezan Bank has planned an arrangement of plans for giving Shariah-agreeable financing offices under the PYMBL program. PMYBL is a program of the Government of Pakistan went for financial improvement of the nation’s childhood. The program will give an expansive canvas of plans concentrated on empowering the nation’s childhood to get business.
Under this plan, financing will be accessible to the young of Pakistan under the four noteworthy classes, alongside the qualification criteria:
1. Small Entrepreneur:
Jobless youth, particularly instructed ones who are searching for building up or expanding Shariah consistent business in their own ability through foundation of big business.
Meezan Bank gives Shariah consistent keeping money administrations like financing, exchange and store related administrations to little and medium estimated endeavors. We join the mastery of in-house item pros and Shariah researchers to give Sharia consistent financing answers for meet the working capital fund, import back, send out re-fund long haul fund, narrative credit necessities and task financing needs of our clients.
2. Micro Enterprise:
People who have effectively finished 3-4 cycles with Akhuwat and need to move on from their present business measure.
Meezan Bank offers finish answer for its clients for all their working capital requirements for acquisition of crude materials, buy of advantages for exchanging and to back overhead costs. To meet the said working capital prerequisite Meezan Bank has finish scope of items.
• Bai Salam
3. Agriculture (Tractor Ijarah):
Young farmers who need Tractor financing.
Long-term Financing Needs
Long term financing needs might be as obtaining o resources like property, apparatus, hardware’s or vehicles and so forth. Following are the two noteworthy items used to provide food such needs.
• Diminishing Musharakha
4. Car Ijarah:
Meezan Bank’s Car Ijarah is a car fund office in view of the standards of Ijarah. Auto Ijarah is an auto rental assention under which the Bank buys another/utilized auto of the client’s decision and rents it out to the client for a time of 3 to 5 years, concurred at the season of the agreement. The Bank offers low month to month rental and snappy handling and conveyance. Rental installment begins after conveyance of vehicle to the client. The Bank likewise gives Takaful front of the auto and free inadvertent demise scope up to Rs. 400,000.
Vehicles like Bolan and Ravi will be financed with the end goal of Taxi, Delivery Vans and comparable exercises and so on.
o Financing Amount : Up to Rs 2.0 M (with the exception of in Micro Enterprise where it is Rs 0.1M to Rs 0.2 M)
o Profit Rate : 6% p.a. for client. Government will pay the distinction of the cost at K+5%
o Customer Contribution : Min 10% (with the exception of in Tractor Finance where it is 20% least)
o Security : Ownership of advantage if there should be an occurrence of Ijarah. Individual Guarantee of candidate and Third gathering assurance of it is possible that one underwriter or greatest three underwriters with consolidated total assets of 1.5 times of back sum. Hypothecation of business resources Postdated checks In lieu of certification or according to Bank’s inward arrangement, Bank may look for (on case to case premise) immoveable property (private, business or agrarian) either in candidate’s name or underwriter’s name with 1.5 times of estimation of the back sum.
• Tenure : Up to 8 years
o Applicant might be Men or Women holding substantial CNIC, matured between 21 and 45 years with entrepreneurial potential.
o Applicant and Guarantor ought not be a defaulter of any bank (clear e-CIB and Data check).
o Applicant must live in the region, from where he/she is applying for financing, for a base period up to three years.
o Applicant and underwriter must not be indicted by any Court of Law.
o In instance of Tractor Ijarah, the rancher should claim horticulture place where there is no less than five sections of land.
o Credit history of candidate and underwriter must be spotless.
o For financing under smaller scale endeavor demonstrated entrepreneurial capability of candidate and his effective fulfillment of 3-4 cycles of Qarz-e-Hasana with Akhuwat is wanted.
o Guarantor must not be a representative of Meezan Bank.
What is Meezan Car Ijarah?
o Car Ijarah is Meezan Bank’s auto financing item and is Pakistan’s first sans interest auto financing. It depends on the Islamic financing method of Ijarah (renting). This item is perfect for people who need to get intrigue free financing for getting an auto.
o Car Ijarah works through an auto rental assention, under which the Bank buys the auto and rents it out to the client for a time of 1 to 7 years, concurred at the season of the agreement. Endless supply of the Ijarah period, the vehicle will be sold at a token sum or skilled to the client.
o Net salary : more than 2 times the month to month rental (comprehensive of takaful)
o Spouse’s unquestionable wage : Clubbed to a degree of half.
o In instance of different credits, every single regularly scheduled installment including proposed Ijarah rental consolidated not to surpass half of net/salary
o Both information check and e-CIB ought to be clear and should not have current default/late at the season of case endorsementBusinessmen
o Minimum experience : 2 years continuous involvement in current business / industry
o Position : Proprietor, partner or director (In case of partner or director, percentage of sharing / holding will be applied)
o Net take home income : In excess of 2 times the monthly rental (inclusive of takaful)
o Spouse’s verifiable income : Clubbed to an extent of 50%.