The following Islamic Agriculture Financing facilities will be available to the customers of select Islamic Branches of Soneri Bank. We will align the approval process with the conventional process flow; however, interest-bearing or non-Shariah-compliant collateral will be unacceptable. We will insure assets owned by the bank under Takaful, and the Resident Shariah board member will approve any deviation.
Mustaqeem Tractor Loan is a Term Finance facility, repayable in instalments from 3 to 7 years. We will extend this term for farmers with a minimum landholding of 5 acres to purchase tractors/implements. Farmers can buy local as well as imported tractors from the open market. The loan amount may be up to 70% of the actual price of the tractor, which the farmer will have to provide quotations for to confirm.
Ijarah means to transfer the usufruct of a particular property to another person in exchange for rent claimed from them. The term Ijarah is analogous to the English word ‘leasing’. Here the lessor is called ‘mu’jir’, the lessee is called ‘musta’jir’, and the rent payable to the lessor is called ‘ujrah’.
Financing under this category extends to running poultry farms/hatcheries/feed mills for 180 days at most per Murabaha to meet the business’s working capital requirements. We designed this facility to provide financing on easy terms with minimum documentation.
Murabaha is a particular kind of sale where the seller expressly mentions the cost of the commodity purchased and sells it to another person by adding some profit thereon. Thus, Murabaha is not a loan given on interest; it is a sale of a commodity for cash/deferred price.
a. Purchase of items such as feed and feed raw material.
b. Vaccinations, vitamins and other medication for poultry, sawdust, wood, coal, medicine, and water filter cartridges.
c. Any other eligible item required to meet day-to-day business expenses.