How It Works
- After necessary Credit & Shari’a approval, the customer will submit Application for Personal Finance (PF)
- After evaluating the application, the bank will purchase specified goods (e.g. cotton, meat) from a commodity supplier on spot payment basis.
- The goods will be identified (i.e. the location and warehouse details) &disclosed to the bank by the broker.
- The Bank, after getting the title to and possession of the goods, will sell the goods to Customer on deferred payment basis.
- The possession (constructive) of goods will be given through a DO/DC in favor of Customer.
- The DO/DC issued will give absolute right to the beneficiary to possess the goods or to liquidate the same by selling it to the ultimate buyer.