islamic banking function

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MCB


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INTRODUCTION TO MCB

Islamic Banking Division was formed witheffect from 1st January 2003, which in a

short span of time, has developed sufficient

expertise, necessary infrastructure,information technology, and manpower to

run Islamic Banking Operations and offer

Islamic Banking Products.


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DEPOSIT SCHEMES:

If you are looking for a deposit opportunity where you canpurse your funds and reap HALAL returns, we offer

following products:

1) Al Makhraj Savings Account

2) IANAT Account

3) Al Makhraj Term Deposit


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The minimum deposit requirement for AlMakhraj SavingsAccount is only Rs. 100 and profit earned semi- annually.

Other features associated with this product are as follows:

1) Minimum deposit Rs. 100

2) Islamic tools used in designing the product

Mudaraba/Musharaka

3) Product to be availed by: Indiviuals and Joint Account

Holders (Local) Companies, Corporate, Trusts etc.


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4) Special Advantages:

a) For customer = Bi annual profit payment;withdrawal facility

b) Shariah = Meets requirements for Shariah

Compliance

5) Additional Features:a) Personal Cheque Books

b) Withdrawal facility from ATM/Debit Card

c) Online Deopsit according to Banks policy

d) Virtual bankinge) Call centers facility


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f) 6) monthly profit payment on the basis of monthly

declared ratesg) Free bank balance certificates (once in 6 months)

h) No penalty if balance falls below minimum level

i) Utility bills via ATM Card

6) Profit payment option; 6 monthly


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For customers who are looking for a chequing accountthat gives them the ease of doing unrestricted numbers of

transactions, we offer AlMakhraj IANAT Account. With a

minimum of only Rs. 100 IANAT Account may be opened.

With all the features and facilities that this product offers,

it is highly recommended for management of business

funds. Details of products are given below:

1) Minimum Initial Deposit, Rs. 1002) Product to be availed by: Individuals and Joint A/C

Holders (Local), Companies, Corporate, Trusts etc


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3) Additional Features:

a) Personalized Cheaque Booksb) Withdrawal Facility from ATM card/Debit Card

c) Online Deposit as banks Policy

d) Debit Card; Utilities payment via ATM Card

e) Virtual Bankingf) Free bank Balance Certificate (Once in 6

months)

g) No penalty if balance drops below minimum

level


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A minimum of Rs. 25000 is required for investment inAlMakhraj T.D. choice of tenors can be made from a list of

options namely 1, 3, 6 months, 1year and 2 years. Profit

payment options are available to customers are monthly,

quarterly, and at maturity date. Details of products are asunder:

1) Minimum deposit, Rs. 25000

2) Islamic tools used in designing the product;

Mudaraba/Musharaka3) Tenors Available: 1 month, 3 months, 6 months, 1 year

and 2 year


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4) Product to availed by: Individuals and Joint A/C

Holders (Local), Companies, Corporate, Trust etc5) Special Advantages:

a) For customers = Profit payment options

customized to suit needs of customers;

Minimum Deposit requirement lower than mostbanks so it is more accessible/ affordable for

peoples

b) Shariah = Meets requirements for Shariah

6) Additional Features:a) Call Center Features

b) Personal financial consultancy services

(regarding Shariah compliance board)


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MCB offers 3 broad Islamic fund based facilities:1. Ijarah

2. Murabahah

3. Diminishing Musharika Equipment


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MCB Islamic Ijarah, to the English term Leasing, based onIjarah wa Iqtina concept which means the sale of an asset to

the lessee (customer) after the Ijarah has matured. Under this

scheme, MCB will be the owner of the asset and you lessee

(customer) will be given the asset to use for a certain period oftime in return for monthly rental payments.

We currently 2 types of Ijarah Products:

Car Ijarah

Equipment Ijarah


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AlMakhraj Car Ijarah Concept:

Under AlMakhraj Car Ijarah Scheme, you can get a car of

your own choice against monthly rental payable to MCB

Islamic Banking.

At the end of Ijarah Agreement you will given a choice

whether to return the car to MCB and receive back the

security deposit paid by you at the beginning or to

purchase it at a price equal to the security deposit.


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Special Attractions: Free from Riba

Fully Shariah Compliant

No rental payments from the date of booking till the

time of delivery

No up front registration / tax related expenses and

fees No up front Insurance payment

Nominal processing fee of Rs. 4400 (Non Refundable)

A unique opportunity for you to get any locally assembled

non commercial or semi commercial new vehicle ofyour choice in 1 5 years by paying as little as 20%

security deposit and NOTHING more!!


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You are Eligible if: You are a Pakistani national residing in the city where

AlMakhraj Car Ijarah product is available.

Your age is not less than 22 years and shall not be 60

(for salaried persons) and 65 (for businessmen), before

maturity of the Ijarah facility.

Your monthly salary / income is at least Rs. 15000 and

your monthly rental payment doesnt exceed 45% of

your net monthly take home salary / income.

You are a businessman / self employed with a

minimum experience of 3 years in the same business or

profession.

You are an employee for 2 years with the current

employer or with overall 3 years of employment

history.


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Equipment Ijarah:

Ijarah for Machinery and other equipment to corporateclients.

Security Deposit:

10% Minimum plus any other security required by theBank from time to time.

Legal Documentation:

Agreement to Ijarah Ijarah Agrement


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A contract between a buyer and a seller under which

the later first purchases the goods at the request of the

former i.e., customer and then sells it to the same

customer after adding profit.

Parties in Murabahah:

Buyer Banks Customer

Seller BankAgent Appointment of customer as agent of the bank

(Foreign Transactions) / common Broker (Local

Transactions)


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Murabahah Sale Price:Cost + Expenses incurred + Agreed Profit

Common Features:

Request of customer for purchases / import of

specific goods.

Appointment of customer as agent of bank (ForeignTransactions) / common broker (Local

Transactions).

The bank after taking possession of goods and

establishing its ownership, shall deliver the same ordocuments of title thereof to the customer on the

basis of offer and acceptance.


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Price / Profit once fixed cannot be changed either

on premature or overdue repayment.

Custom duties to be either paid in full by bank or

customer. If paid by the bank, it shall be the part of

Murabahah Selling Price.

Insurance to continue till Takaful (Islamic Insurance)

is available in Pakistan.


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It is the contract through which the bank and its client

participate in the joint ownership of a property. The

share of the bank is further divided into number of

units and it is agreed that the client will purchase theBanks share periodically., thus increasing his own

share until all the units of the bank are purchased by

him so as to make the client the sole owner of theproperty.


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Parties in Diminishing Musharakah:Bank (In Joint partnership with its customers)

Partner (Banks Customer)

Diminishing Musharakah Pricing:

The buying (per unit price) for the buyer is determinedat the beginning of the partnership. The monthly

payments paid by the buyer includes this price plus

rental charges since the buyer is already in possession

of the commodity and is using it.


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Common Features:: Request of customer for starting a new project

/expanding/business/buying equipment for specific

purpose.

Bank and the client shall jointly contribute funds to

purchase the equipment in the pre agreed ratio.

The client will pay rentals for using MCBs share of

equipment.

The bank will have to share all the obligations of being

the co owner.

Appropriate collateral / securities can be obtained as

per mutual consent.

Insurance / Takaful will continue to execute.


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MCB

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