Business Banking

Business Financing-i / Term Financing-i

Term Financing-i is a financing package with fixed profit rates designed for companies and co-operatives. It is based on Islamic concept of Bai' Al-Inah (buy and sell back agreement), Al'-Istina (where payments are made in stages to facilitate progress of the manufacturing or construction of the subject of sale) and Al-Bai' Bithaman Ajil (where the bank provides financing to customers to own property by purchasing the asset/service with cash and sell back the property/service to the customer at cost price plus profit).

Eligibility : All business entities such as private limited companies and co-operatives.

Concept : Tawarruq

Purpose : Working capital for business expansion involving companies from various sectors including agriculture, credit consumer, property, manufacturing, infrastructure, retail, communication, oil and gas, etc.

Margin : Up to 80% of working capital requirement

Tenure : Maximum 10 years.

Fee and Charge

Charge and Service for Individuals
Transaction Charge
Wakalah Fee NIL
Stamp Duty Fee NIL
Early Settlement Fee Rebate (Ibra’) will be given on the deferred profit
Commodity Trading Fee RM15 will be charged for every RM1 Million (50:50 sharing basis). Minimum transaction is RM1,000.
Late Payment Charges During the financing period:
1% per annum on top of the outstanding payment.

After the financing tenure expires:
Shall not be more than the prevailing daily overnight Islamic Interbank Money Market rate (IIMM) on the outstanding balance.

Additional Documents Required

Term Financing-i

  • Detail information on purpose of financing.
  • A valuation report of property to be charged as security if applicable.
  • Cash flow and project profit & loss projection.