Bank Al Habib Islamic Banking Division offers diverse Shari’ah compliant solutions with flexibility of choice to cater the financing need of SMEs in a safe, simple and pleasant way.

Short Term Financing (Working Capital needs)
AL Habib Islamic Murabaha

A short term financing facility for purchasing of raw materials, and other assets by Bank and its onward sale to the customer on cost plus profit basis usually with deferred payment.

This product is suitable for manufacturers, traders, importers to procure /import any kind of Shariah permissible goods (raw/ semi finished/ finished/ processing/ packing material etc).

AL Habib Islamic Istisna (Suitable for Manufacturers)

A short term financing facility in which the Bank orders the manufacturer to manufacture goods as per the specification of order. Once Istisna goods are manufactured, goods are delivered to the Bank. After taking delivery, these goods are locally sold/ exported by the customer acting as Bank’s Agent and finance is realized through their sales/export proceeds.

AL Habib Islamic Musawamah (Suitable for Finished Goods Financing)

A Short term financing facility for meeting liquidity requirements of the customers in which the Bank purchases the finished/manufactured goods of the customer which are ready to sale. These goods are then delivered to the Bank. After taking delivery, these goods are locally sold/ exported by the customer acting as Bank’s Agent. The finance is then realized through their sales/export proceeds.

Islamic Export Refinance Facility (IERF)

As per directives from State Bank of Pakistan, Bank AL Habib Islamic Banking Division offers Export Finance Facility under SBP IERF scheme to support export oriented companies. Both pre and post shipment facilities based on Murabaha and Istisna are available at subsidized rates communicated by SBP from time to time.

This product provides for all the unique requirements of exporters, and is available in both Part-I and Part-II as per the Islamic Export Refinance Scheme of the State Bank of Pakistan.

Long Term Financing (Fixed Asset Financing needs)
AL Habib Islamic Diminishing Musharkah

The Customer and Bank purchase asset in which ownership is created jointly. The Bank leases its share to the customer and the customer purchases units (of Bank’s ownership in the asset) at periodic intervals. Upon purchase of all the units, the customer becomes the sole owner of the asset.

This product is suitable for financing of fixed Assets such as for construction/purchase of Godowns, Warehouse, Storage Unites and Commercial Properties, Plant, Equipment and Commercial Vehicles (Fleet Financing).

AL Habib Islamic Ijarah

Ijarah is technically referred to give something on rent. The Bank uses this product for medium and long term financing purposes where the Bank acquires the asset required by the customer and then leases it to the customer for a fixed period.

This product is used for the financing of Fixed Assets such as Plant, Machinery, Equipment and, Commercial Vehicles.

Trade Related

Letter of Credit (Sight & Usance)
In order to facilitate customers, Bank offers Trade Finance facilities including LCs, Contracts, Open Accounts, Advance payments.

Letter of Guarantee
In order to facilitate Customers, Bank offers Shariah-Compliant Guarantee facility to its customers where the Bank provides different types of guarantees on behalf of the customer including bid bonds, performance bonds, advance payment guarantees etc.

Step-wise Process/Procedure of Financing
  • Customer approaches the Branch and requests for credit facility.
  • Upon completion of required documentation by the customer; the branch will complete the formalities.
  • Upon approval of credit request; Branch coordinates with the customer for signing and acceptance of the required documentation in line with SBP PR’s Bank’s internal policies and credit approvals.
Frequently Ask Questions

How are SMEs (Small and Medium Enterprises) defined?
A Small Enterprise (SE) is a business entity which meets the following parameters:

Number of Employees Upto 50 (including contractual employees)
Annual Sales Turnover Upto Rs. 150 million

Medium Enterprise (ME) is a business entity, ideally not a public limited company which meets both the following parameters:

Number of Employees Upto 51- 250 (for Manufacturing & Services Sector)
Upto 51-100 (for Trading Sector)
Annual Sales Turnover Above Rs. 150 million upto Rs. 800 million

How much amount can I seek from the Bank?
Based on the following SBP’s PRs and business need of the customers.

For SE - Max financing allowed Upto Rs.25 million (total from all banks)
For ME - Max financing allowed Upto Rs.200 million (total from all banks)

What is the profit rate?
Profit is charged by applying the applicable benchmark (KIBOR, LIBOR & IERF) in addition to bank’s spread.

Contact Details
For more Information & Guidance, please visit our nearest Islamic Banking Branch.