Dubai Islamic Business Finance is a shariah compliant term finance facility which provides a complete solution for fulfilling the financial needs of your business. Using the Shirkatul Melk cum Ijara model, Dubai Islamic Bank Pakistan Ltd. (DIBPL) enters into a shirkatul melk relationship with you by purchasing an undivided share of your residential property and subsequently leases to you this undivided share in the property against monthly rentals thus helping you in fulfilling your business needs conveniently and in a fully Shariah compliant manner. This product is available for new as well as those who already have a business finance facility from another bank and wish to bank the Islamic Way!
Dubai Islamic Business Finance offers two product variants:
• Purchase of undivided share (New to Bank / Fresh)
• Purchase of undivided share of property from other banks (Balance Transfer)
Features
There are so many reasons that make Dubai Islamic Business Finance the right choice!
• The only product of its kind available in the market
• 100% Shariah Compliant
• Minimum Financing amount of Rs. 500,000
• Maximum financing of up to Rs. 20 million
• Fastest processing time
• Affordable monthly payment plan
• Financing up to 70% of your property value
• Finance Enhancement option as per the applicable terms
• Early & Partial settlement option as per the applicable terms
• Tenor Rescheduling option as per the applicable terms
Pricing Mechanism / Profit Rate Criteria
Dubai Islamic Business Finance is a variable rate product i.e. the rental rate is linked with revisable Karachi Interbank Offered Rate (KIBOR) which shall be revised after every six or twelve months from the date of contract booking depending upon your chosen renewal option.
Applicable Profit Rate = Relevant KIBOR + Margin
The prominent features of the Pricing Mechanism of the Dubai Islamic Business Finance are further explained in detail as follows:
1. The variable rental is based on a benchmark KIBOR + a predefined margin.
2. The variable rental and the rental payment schedule, which will be offered to you at the time of contract booking, shall be valid for six or twelve months only depending upon your chosen renewal option.
3. The variable rental is (annually or semi-annually) renewable. It is renewed based on the prevailing KIBOR rates at the time of renewal. In other words the rental rate is linked with revisable KIBOR rate which shall be revised after every six or twelve months from the date of execution of the Payment Agreement.
4. The predefined Bank’s margin remains constant throughout the financing period. However the KIBOR may increase or decrease based on market rate movement which can change the rental amount. To further explain this point a hypothetical illustration is given below using 12 month KIBOR as benchmark for your understanding:
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Hypothetical and Approximate Rental calculations for illustrative purposes only
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(Rs. in PKR)
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Year #
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Financing Amount
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Financing Tenure
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KIBOR
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Bank's Margin
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Profit Rate
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Monthly Rental
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1*
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10,000,000
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20 Years
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13.00%
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4.00%
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17.00%
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153,900
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2**
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10,000,000
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20 Years
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16.00%
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4.00%
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20.00%
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175,630
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3***
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10,000,000
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20 Years
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11.00%
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4.00%
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15.00%
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139,959
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* The arbitrary 12 month KIBOR and rate of Bank's margin is taken as assumption
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** In year 2, the KIBOR is increased by 3% from year 1 and Bank's margin remains constant
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*** In year 3, the KIBOR is decreased by 5% from year 2 and Bank's margin remains constant
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Installment Payment Frequency and Mode
DIBPL Business Finance customers can make their “monthly rental payments” through any of the following modes/channels as per their convenience.
Over the Counter:
DIBPL Business Finance customers can deposit their monthly payments/rentals “over the counter” at any DIBPL branch through cash or cheque in a dedicated account.
Direct Debit Instructions:
DIBPL Branch Banking customers can make their monthly rental payments by simply giving direct debit instructions from their account maintained at any DIBPL branch.
Internet Banking:
DIBPL Branch Banking customers can easily make their monthly rental payments by using Dubai Islamic Internet Banking facility to internally transfer the rental amount from their personal account to the dedicated account.
How it Works?
• Our Relationship Officer will visit and help you complete the Business Finance application form
• Once your application has been analyzed and approved you will receive a facility advising letter stating the terms
of offer and the finance amount you are eligible for
• Upon sale of an undivided share of your property to the Bank, the purchase price, which would be, the amount
stated in the facility advising letter, will be handed over to you or deposited into your account
• You will then be required to execute a lease agreement (Payment Agreement) to lease DIBPL’s undivided share
of the property for an agreed number of years against monthly rentals. To complete the transaction, you will be
required to sign the remaining transaction documentation
• After successful completion of the Lease term, DIBPL will sell its undivided share in the property to you for a
nominal price
Eligibility
Customer Eligibility Criteria
• Pakistani National
• Age 23-60 years
• Minimum monthly net income of Rs.50,000
• Self-employed Businessmen/Professionals
Property Eligibility Criteria
• The qualifying property must be located in Cities (Karachi, Lahore, Islamabad and Rawalpindi) of Pakistan
• The minimum value of the property must be greater than Rs.800,000
Documents Required
• Copy of primary applicant’s CNIC
• Copy of Co-partner’s CNIC, if necessary
• 2 Passport Size Photographs
• Tax Returns
• Copy of Utility Bill
• Professional Degree (for self employed professionals only)
• Proof of Profession
• Bank statement of the last 12 months & Bank Certificate
FAQ's
1. Who can apply for Business Finance facility?
Self Employed Professional (SEP)
Self Employed Businessman (SEB)
2. In how many cities is Business Finance Facility available?
Karachi
Lahore
Rawalpindi/Islamabad
Faisalabad
3. What is the minimum and maximum financing limit available for Business Finance?
New to Bank Rs 500K – 20 million
Transfer of finance from another bank Rs 500K – 20 million
4. What is the product Structure/mode of finance?
It is based upon the following modes of Shari’a
Shirkat ul Melk (Co-ownership) where the Bank and the Customer jointly own the Asset &
Ijara of the Bank’s share to the Customer (Lease)
5. Who can be Co-partner?
Only spouse and immediate blood relatives (Son, Father, brother and mother) except daughter & sister, can be co-partners.
6. Can a commercial property be financed or not?
As per State Bank’s Regulations for Consumer Financing, only residential property is allowed to be financed under Business Finance product.
Apply Now
Contact Details of the Concerned Personnel/Representatives
To know more about the Dubai Islamic Business Finance Products, please call DIBPL Phone Banking at 111-786-DIB (342). You may also visit or contact our dedicated personnel/representatives at the following address and contact numbers:
Faisalabad: Muhammad Ashfaq (Regional Sales Manager)
Dir Tel: 041-8555471
Address: 575-B, Millat Plaza, People’s Colony, Satiana Road, Faisalabad
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