First IBL Modaraba

Ijarah

Ijarah is a term of Islamic “fiqh” means to give something on rent. Ijarah is when person/organization transfers the rights and the benefits of tangible/intangible assets to another person/organization in exchange for a rent claimed from them” We at First IBL Modaraba have issued IJARAH facilities for the following tangible assets with an approximate value of Rs. 20.00 Million.

> Furniture & fixture

> Plant & Machinery

> Office Equipment

> Vehicles

We always have an open mind for providing IJARAH facilities for tangible and intangible assets to all aspects of business and domestic usage.

Musharakah

Musharakah is derived from Arabic word “Shirkah” means “sharing”. It is a joint venture where every partner bears the risk as well as enjoys the profits.
Musharakah (cash invested) is when clients (Individual / Organizations) buy Certificate of Musharakah from Financial Institution. This capital invested is used only for “Halal” businesses and the profit is distributed according to the agreed ratio in the Musharakah agreement.

The Musharakah agreement can be used for both Assets and Services. First IBL Modaraba portfolio mainly consists of tangible assets but we always have an open mind towards investment in intangible assets.

Morabaha

The word Morabaha has been derived from the Arabic word Ribah, which means profit. Morabaha is an Islamic financing agreement, where an intermediary buys a property with free and clear title to it. The intermediary and prospective buyer then agree upon a sale price (including an agreed upon profit for the intermediary) that can be made through a series of installments, or as a lump sum payment. Morabaha is not an interest-bearing loan, which is considered riba (or excess). Morabaha is an acceptable form of credit sale under Sharia (Islamic religious law). Similar in structure to a rent to own arrangement, the intermediary retains ownership of the property until the loan is paid in full. It is important to note that to prevent riba, the intermediary cannot be compensated in addition to the agreed upon terms of the contract. For this reason, if the buyer is late on their payments, the intermediary cannot charge any late penalties. First IBL Modaraba is currently involved in providing Morabaha facilities exceeding over Rs. 30 Million to a reputed producing concern, to name a few, and our marketing staff is always on the lookout for new profitable ventures.

House Finance

First IBL Modaraba’s Home Finance is the key to your dream home. A model that is a mix of Musharakah & Ijarah, the Modaraba enters into a partnership with you and helps you in fulfilling your dream of owning a home quickly, conveniently and in a fully Shariah compliant manner. Whether you want to buy, renovate or simply wish to switch from your present home finance with any other bank, First IBL Modaraba’s facility would be the best Shariah compliant alternative.

Currently FIBLM Home Finance is offering three product variants:

• Home Purchase.
• Purchase of Undivided Share (Home Renovation).
• Purchase of Undivided Share of Property from an Other Bank (Balance Transfer).