Comprehensive Insurance coverage to protect your project, enterprise or house from a wide range of disasters throughout the financing period
 
The Insurance plan to guarantee payment of any outstanding dues in the event of death and permanent total disability

 Fixed and competitive mark-up on the facility – puts the budget within your reach.
100% rebate on rentals on prepayments 

No processing fees

No security deposits

No hidden charges

No interest rate fluctuation risk.  

Terms & Conditions other than as indicated above in line with the CBN Policy and Regulatory Framework for Microfinance Banks in Nigeria and international  best practice of Conventional / Islamic Micro Finance Banking Service Provider

C: MUDARABA (PROFIT SHARING)

Investing Ethically…

As the pioneers of Micro Finance service provider in Nigeria, we offer you a range of Ethical and Sharia’h – Compliant Investment products…

Mudaraba is an equity-based instrument where one party (Rabbul Maal) is the investor and the other (Mudarib), the fund manager. The ratio of profit sharing is determined at the time of making the investment.

In this partnership, the investor provides the funds and the Fund Manager provides the Management skills. The profits generated from the pool of investments are shared between the two in a manner where the investor is rewarded for the risk he/she bears and the Fund Manager is compensated for his Management skill.

In an unlikely event of a loss from an investment, the profits distributed to the investors are after the absorption of that loss by the pool of investors.

As a Mudarib, IMFB is a trustee as well as an agent for the Investors and it uses its infrastructure, contacts, competence, know-how and goodwill in a prudent manner to obtain the best investment returns.

IMFB will use the fund only to finance Sharia compliant and ethical business activities including, Local trading, Farming, Imports, Exports, Leasing, Housing etc.

ETHICAL SAVINGS PRODUCTS

12 Month Mudaraba with Profits at Maturity.

GOLD
Minimum Investment: N 2, 000,000.00
Profit Sharing Ratio: 60% to Investors - 40% to IMFB
Profits payable on Maturity
Special Conditions: No withdrawals of capital for 12 months.

SILVER
Minimum Investment: N 1, 000,000.00
Profit Sharing Ratio: 55% to Investors - 45% to IMFB
Profits payable on Maturity
Special Conditions: No withdrawals of capital for 12 months.

BRONZE
Minimum Investment: N 500,000.00
Profit Sharing Ratio: 50% to Investors - 50% to IMFB
Profits payable on Maturity
Special Conditions: No withdrawals of capital for 12 months.

12 Month Mudaraba with Monthly Profits
Minimum Investment: N5, 000,000.00
Profit Sharing Ratio: 65% to Investors - 35% to IMFB
Profits payable at end of each month
Special Conditions: No withdrawals of capital for 12 months.

Flex Mudaraba
Minimum Investment : N10,000,000.00
Profit Sharing Ratio: 50% to Investors - 50% Retained by IMFB
Profits payable Bi-annually
Special Conditions: No withdrawals of capital for the first six months.

D: MURABAHA (COST-PLUS FINANCING)

What is Murabaha ?
Murabaha refers to the sale of a commodity in which the seller agrees with the buyer to provide him a specific commodity on a certain profit added to his cost. The basic principle of Murabaha is that the seller must disclose the actual cost he has incurred in acquiring the commodity and his profit mark-up thereon. The profit may be a specified amount or be based on a percentage.
 
Murabaha as a Mode of Finance
Most Islamic banks and financial institutions use Murabaha as a convenient mode of Islamic finance. It can be used as a mode of finance for almost any type of asset-backed financing, including trade finance, import & export, vehicle financing, etc. Murabaha financing also allows for payment on deferred tenors. In such cases, the profit mark up may vary according to the nature of the transaction.

Basic Rules
Murabaha is not a loan given on interest but it is the sale of a commodity; therefore it has to fulfil all conditions necessary for a valid Islamic sale. Although there are many rules regarding contract of sale, the following 3 rules are most important to make any sale valid.
 
The goods must exist at the time of sale
The goods must be in the ownership of the Seller at the time of the sale.
The goods must be in the physical or constructive possession of the seller at the time of sale.  Financing by way of Murabaha is only acceptable if there is no "Buy Back" arrangement. Such an arrangement is generally used as a device to earn interest.

Therefore, IMFB should be supplied to and then sell to its client.

Step by step procedure of financing by way of Murabaha

The Murabaha Transaction

The most essential element of the transaction is that the commodity must remain at IMFB’s risk after purchase from the supplier and before the second sale to the customer.

Security/Collateral:
Normally, the customer is required to provide adequate security / collateral to cover IMFB's exposure to the customer.

Salient Features:

Asset - based financing

No interest rate fluctuation risk       

E: MUSHARAKAH ( PARTNERSHIP FINANCING “B”)

What is Musharaka ?

Musharaka literally means sharing. In the context of business it means a joint venture in which all partners share the profit and loss of the joint venture. Musharaka is an ideal alternative to interest based financing with positive and far reaching effects on production and distribution.

Musharaka as a Mode of Finance

The general presumption regarding Musharaka is that it is a contract for initiating a joint venture right from its inception and to continue right up to the end of the business venture, but in fact, it is a versatile instrument which can be and is being applied in a wide variety of forms all over the world. Musharaka is used today to finance "going concerns" where partners may join and leave without adversely affecting the continuity of the business. The concept of Musharaka is based on some principles and so far as these principles are not violated, the form and procedure of Musharaka can take any shape. 

The Principles
The principles set by the Sharia’h for a Musharaka transaction are as follows:

All rules for a valid mutual contract should be observed. E.g. The parties should be capable of entering into a contract, the contract should take place with the free consent of the parties without any duress etc....

The proportion of profit to be distributed between the partners must be agreed upon at the time of entering the contract.  The ratio of profit must be determined in proportion to the actual profit earned and not in relation to the capital invested by a partner.

It is not allowed to pay a fixed lump sum profit amount to any of the partners or any rate of profit linked to the amount of the investment made by a partner. The ratio of profit may differ from the ratio of capital contribution provided the partner who has put an express condition that he will not work and does not receive more than his ratio of capital contribution. This is the view of Imam Abu Hanifa (R.A.) and is in accordance with the AAOIFI Sharia’h Standards.  Losses shall be shared in the exact proportion of the capital contribution of each partner.

The Structure of a Musharaka Contract

Management of Musharaka

The normal principle of Musharaka is that every partner has a right to take part in the management and to work for it. However, the management of the project may be carried out by all the partners or by just one partner.

Musharaka with IMFB

Finance using the structure of the Musharaka is available to individuals, governments and solidarity groups for income generating project financing, local trading, working capital financing, real estate, etc., on a selective basis.

Security / Collateral

Security can be taken in a Musharaka transaction but shall be only enforced in circumstances involving fraud, negligence or mismanagement by the managing partner.         

F: IMAAD

IMAAD is a unique and flexible investment plan for children.

These investment accounts are specially designed for your children, nephews and nieces and are fully shari’ah compliant. They are totally Interest-free and can be opened in the names of children who are below the age of maturity.

We pay profits into this account bi-annually (i.e. in January and July every year). The accumulated profits together with the capital invested, will grow with the child who will be able to operate the account on reaching adulthood.

All that is required are a copy of your child's Birth Certificate, the signature of one parent/guardian and a minimum investment of N5, 000.00. Thereafter, you can invest into the account periodically at your own convenience. Invest in Imaad for a truly rewarding future for your child

G: DEVELOPING SAVINGS AND LENDING FUNDS THROUGH THE MURABAHA AND MUDARABA MICRO FINANCING MODES
We give interest-free loans to Sharia’h Compliant Individuals and customers who want to start new businesses through the Murabaha Financing Mode. Customers who intend to take loans are asked to form a group of five members before the request for a loan may be assessed. Every member in a group is required to open a savings account called Mudaraba Savings Accounts (also known as Profit & Loss Savings Accounts) in his or her own name with the bank and deposit an agreed-upon amount of money every week. Savings must form at least 20% of capital or loan required from the Bank. The savings accumulate gradually and steadily using this method for up to ten weeks. The Bank then gives 80% of the capital required by the customer. 

Each group requires a volunteer group leader to organize all aspects of the business and to assist the other group members in various activities. In such a group-wise loan, group members are jointly liable for the mistakes the other members might make. The bank then forms a team, which consists offive individual groups of for instance, poultry farmers. All the groups within a team are in turn also responsible for each other’s activities and they relate every instance back to their designated team leader. The group leaders of five different groups work as members of a team-executive-committee and this committee selects one president, one cashier, and one secretary.

Our staff are responsible for training the group leaders. The training consists of information sessions where everyone learns general ideas and techniques about their production activities.

H. ZAKAH, THE THIRD PILLAR OF ISLAM

The institution of Zakah offers numerous advantages to Muslims. As a religious duty and an obligation on all Muslims, it offers the donor the inner satisfaction of a duty accomplished. It induces a feeling of pleasure in giving up wealth by teaching that only those funds on which the due Zakah has been paid are halal (legitimate) for appropriation or consumption. The very word Zakah means “sweetening,” and it implies that those funds on which Zakah has not been paid are “bitter.” The funds on which Zakah has been paid are promised to give satisfaction and reward in this world and the next (Qur’an: 61:10- 11); those on which no Zakah has been paid will bring suffering and punishment in this world and the certain fire of Hell (Qur’an 3:180). “From their wealth, take alms so that you might purify and sanctify them.” (Qur’an 9:103) This verse means: ‘Take’, O Messenger, a stipulated amount of alms ‘of those seeking to repent,’ such as the obligatory Zakah, or ‘take’ a voluntary unstipulated amount. To ‘purify’ is to purify these people from the faults of stinginess, greed and meanness, and lack of remorse towards the needy, and other similar depravities. To ‘sanctify’ these people is to develop and uplift them through righteous deeds and blessings until they are worthy of happiness on earth and in the Hereafter.

I. CALCULATING ZAKAH ON YOUR LONG TERM AND EQUITY INVESTMENTS

Calculating Zakah on your long term and equity investments, Integrated Micro Finance Bank (IMFB), hopes to see all members of the Islamic community prosper. To help, we can calculate and distribute Zakah donations on behalf of investors in related accounts.

The methodology for our Zakah calculation has been reviewed and approved by the highest Islamic authorities and the Shariah Advisory Board. (See our Zakah brochure for details of our Zakah product).

HAJJ SAVINGS PLAN

Islam mandates that all Muslims who are financially and physically capable should perform a pilgrimage to Mecca - the Hajj - once in a lifetime. Besides, commanding his companions to perform it, the Prophet (PBUH) advised them to financially prepare for it, and delineated the specific way in which each of the rituals involved was to be performed. The traditions of the Prophet (SAW) raised the religious and ethical value of pilgrimage to such an extent that it has become the ultimate worldly hope of a Muslim's life.

The Hajj should be undertaken as an affirmative response to Allah's (SWT) calling. The verses that the pilgrim chants throughout the pilgrimage is an expression of his acquiescence to Allah's call. The Hajj is an act of presenting one’s self before Allah. Muslims prepare for it as if they were leaving this world altogether. First, they must pay off their debts including any zakah due on their wealth. They must also return whatever was given to them in trust and have enough savings to bear the expenses of the journey – expenses such as travel, Hajj tax, lodging, and the procurement of an animal (or sacrifice voucher) for slaughter. In addition, they must also provide for their families and dependents during their absence. Since no Hajj is valid if it is performed "on credit," the pilgrim must have previously earned and saved enough to cover these expenses. Every Muslim must make Hajj a priority and plan to perform it as soon as possible at least once in a lifetime.

J. THE COST OF HAJJ

What would be the cost of Hajj for someone living in Nigeria? How much should be invested? To assist in this process, IMFB has developed a savings plan and a simple worksheet that can help determine the savings goal. The worksheet assumes Hajj costs rising on the average due to inflation in Nigeria every year. Provision should also be made for taxes that will have to be paid on income from the investment.

As Muslims are strongly discouraged to incur debt, this approach of saving, investing, and spending on future needs can also be used for other purposes such as saving for a vehicle, college education, a child's marriage, and Umrah. The same worksheet can be printed and used for each such expenditure.

To ensure that investments meet the requirements of the Shari’ah, we carefully select investments following the guidelines set by our Shari’ah Advisory Board. Our investments seek to produce dividend income, with a modest growth at a low risk and capital appreciation. The funds offer many investment options, such as special accounts for children (ideal for building education funds), and savings accounts, etc. See our comprehensive Hajj Savings Plan brochure for details.