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Q.1 What are the products and services of IFIL?
| Products ------& Services |
---------------------------------------Particulars |
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Investment Products
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| Leasing |
Lease financing for manufacturing and service equipment to all the major industrial sectors,motor vehicles, water vessels,construction equipments-all machineries and transport vehicles. |
Hire Purchase Shirkatul Melk
(HPSM) |
HPSM financing for Land with Building purchase,Flat purchase and renovation, Building construction and finishing, Commercial space and Shops purchase, Industrial construction, land development etc. |
| Bai Muajjal (BAIM) |
Trade financing for stock/raw materials/finished product purchase. |
| Project Finance |
Composite finance for land development,construction,factory building construction,other fixed assets and capital machinery financing. |
| SME Finance |
SME finance to cater the business needs of Small and Medium sized businesses for the purpose of raw materials/goods/commodities and/or fixed assets purchase for trading, manufacturing,service, agriculture,non-farm activities,agro based industries etc. |
| HDS Finance |
House hold durable and consumer items financing scheme. |
|
Deposit Products
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| Mudaraba Term Deposit |
Mudaraba Term Deposit – having annual, monthly, quarterly, half yearly profit taking options. |
| Mudaraba Deposit Schemes |
We accept deposits from a diverse clientele of corporate bodies, insurance companies, banks and individuals. Mudaraba Deposit schemes includes-
Mudaraba Pension Deposit Schemes, Mudaraba Special Deposit Schemes, Mudaraba Marriage Savings Deposit Schemes, Mudaraba Education Savings Deposit Schemes, Mudaraba Mohor Deposit Schemes, Mudaraba Lakhopoti Deposit Schemes, Mudaraba Millionaire Deposit Schemes, Mudaraba Kotipoti Deposit Schemes, Mudaraba Hajj Deposit Schemes, Mudaraba Triple (likely) Money Deposit Schemes, Mudaraba Double (likely) Money Deposit Schemes, Mudaraba Higher Education Deposit Schemes, Mudaraba House Owning Deposit Scheme. |
Q.2 What is the Capital Structure?
Share Capital-----------------------------TK 92.76 Crore
Paid Up Capital----------------------------TK 59.24 Crore
Reserve---------------------------------------TK 33.52 Crore
Q.3 What is the Strength of your organization?
Investment Outstanding------------- TK 319.69 Crore
Total Deposits---------------------------- Tk 255.24 Crore
Bank ------------------------------------TK 15.50 Crore
Individual--------------------------------TK 239.73 Crore
Investment Products Related:
Q.4 For what kind of equipment can we get financing for Lease Financing or Hire Purchase(General) ?
A : All types of equipment and machinery for industrial plants, hospital and medical diagnosis,
transportation & construction equipment,office equipment etc. Under the category of
equipment leasing.Gestation/moratorium/grace period may be allowed up to maximum
06 months over the actual required period to generate cash flow from a project.
Q.5 Who chooses the equipment/machinery?
A : Customer has all liberty to choose the equipment, terms and condition,supplier including price.We will finance the equipment at your choice.
Q. 6 What is the lease term/period?
A : Lease term/period means the non-cancelable period during which the customer can use the
leased equipment exclusively.Generally it ranges from 36 to 60 months.
Q.7 Who will bear the incidental cost/L/C opening cost and/or other related charges?
A : The actual purchase price and other incidental expenses including financial expenses and all
bank charges shall constitute the acquisition cost and would be capitalized at the time of execution.There are also options to pay the incidental costs upfront.
Q.8 What would be the factors and how much would be the Lease rental?
A : Lease rental is determined based on acquisition cost of equipment and lease term. Monthly
lease rental is most common, however, quarterly payment can also be considered depending on
the real cash flow of projects/customers.
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Q. 9 What is contract and lease execution?
A : Lease contract is based on the basis of negotiated terms and estimated acquisition cost.
The lease is executed on the basis of actual acquisition cost on delivery or installation of the
equipment.At the time of execution the actual payment schedule is fixed and you are required
to start paying the rental.
Q.10 Who pay the cost of insurance?
A : Customers are required to arrange the insurance coverage on the leased equipment for
the entire lease term. It is compulsory to take the insurance & renew the same in every year.
Q.11 Who has the responsibility to maintain the equipment/machinery?
A : The customer is required to maintain the leased equipment/machinery in good operating
condition,though insurance shall cover most of the abnormal risks.
Q.12 What will happen at the expiry of lease period/term?
A : At the expiry of lease term, customers may
- purchase the equipment from us at negotiated price and/or transfer price as fixed at the time of
sanctioning of the facility.
- return the equipment to us.
Q.13 What is Hire Purchase Sherkatul Melk(HPSM)& what kind of products are available under HPSM?
A : Under HPSM system the client and IFIL will share the ownership of the asset to be financed.
As per contract term the client will take possesion of the asset. But with a commitment to
purchase the IFIL'S portion The client will be giving a fixed installments or sometimes baloon
payment which will include the purchase cost and rent for his using the asset. Normally housing/real estate finances are made under this mode.
Q.14 What is the advantage of hire purchase over lease finance?
A : In HPSM finance the customer need not pay the transfer price at the end of the investment period & may have the option to pay lump sum and/or balloon payment commensurating his/projects cash flow.
Q.15 What is the advantage of hire purchase over lease finance?
A :In HPSM finance the customer need not pay the transfer price at the end of the investment period & may have the option to pay lump sum and/or balloon payment commensurating his/projects cash flow.
Q.16 What is the investment period?
A :Generally it ranges from 24 to 60 months. Gestation/moratorium/grace period may be allowed up
to maximum 06 months gestation period the actual required period to generate cash flow from a project.
Q.17 What is Bai Muajjal Financing?
A :IFIL provides Bai Muajjal Financing (Trade Finance) by way of purchasing raw materials /intermediate goods/finished products for its clients
for the ultimate sale by the client to their customers. In nature it is Trade finance usedfor buying of
cloths, Raw Materials, Papers,General item for shops etc.
Q.18 Why do you want collateral securities when ownership of assets lies with you?
A : The collateral coverage is not applicable for all cases. If the management thinks to get well
coverage of risk of project/cash flow of the business only then we obtain collateral securities.
In most of the cases for corporate bodies with good reputation, we need not take collateral coverage.
Q.19 Why do you need equity participation in leased machinery?
A :The equity participation is required to judge worthiness and to be careful for equipment
i.e. for greater care of using of machinery/equipment, equity participation do have some
psychological affects of belongingness from a customer's point of view.
Q.20 What is the difference between lease and hire purchase?
A : Hire Purchase(HP), Lease
(a) Hire purchase promises to sale an asset to the user.
(a) Lease may not promise to sale an Asset to lessee directly or indirectly.
(b) In HP, there are options for early termination of the Agreement.
(b) Normally, Lease does not permit early termination of the Agreement.
(c) In HP, there are options for purchase of hired goods on the payment of last installment.
(c)In some Lease,Lessor retains the ownership of the leased out asset.i.e.in case of Operating Lease.
(d) It is not mandatory in HP that, the financer will keep the title of ownership.
(d) In every case, Lessor is the legal owner of the goods.
(e) Tenor of HP is comparatively short than Lease.
(e) Tenor of Lease is comparatively lengthy than HP.
Q.21 What is the investment period for Bai Muajjal?
A : Generally it ranges from 12 to 36 months considering the trade/business volume as well as
the cash flow of the customer.
Q.22 What is SME Financing?
A : IFIL extends Small and Medium Enterprise (SME) Financing to cater their business needs.
SME is an investment scheme for the purpose of raw materials/goods/commodities and/or
fixed asset purchase to the small and medium sized trading, manufacturing,service,
agriculture, non-farm activities, agro based industries etc.
Q.23 What are the terms and conditions of SME financing ?
A : Some of the preferred terms and conditions are as follows:-
a) Business having good prospects and cash flow as well as profitability.
b) Investment amount - As per credit worthiness of the customer
c) Tenure - Maximum 48 months.
d) Rate of return - 17%-19% depending upon the cash flow of the customer.
Q.24 Do you need collateral securities for SME?
A : Not generally. If the business and/or cash of the project seems more risky but the business has
prospect,only then we may seek collateral securities for SME’ financing.
Q.25 What types of securities are needed for SME financing?
A : Any type of marketable and en-cashable securities like FDR,PSP,BSP.Besides,collateral
securities like land,building, apartment etc. are also acceptable against investment facilities
of IFIL. Deposition of Possession Deeds,Original Rented Deeds are most common securities for SME financing.
Q.26 What type of securities are required to avail finance from IFIL?
A : Any type of marketable and en-cashable securities like FDR,PSP,BSP,Bank Guarantee etc.
Besides,collateral securities like land,building,apartment etc.are also acceptable against investment
facilities of IFIL.IFIL also accept Corporate guarantee,Insurance guarantee of top graded companies and personal
guarantee of reputed persons.
Q.27 What is the maximum processing time?
A : The maximum processing time depends on the financing requirement of the customers
as follows:-
a) up to Tk. 20.00 lac - 10-15 days.
b) above Tk 20.00 lac to Tk.50.00 lac - 10-25 days.
c) above Tk 50.00 lac - 20-25 days
Q.28 What is the difference between Islamic Finance and Traditional finance system?
A : Islamic Financing is guided by Islamic Shariah Principles. To eliminate “RIBA” in financing
towards earning “HALAL” livelihood as per Quarnic guidelines is the main theme of Islamic
Finance.IFIL conducts all its functions which are supported by Islamic Shariah.
Q.29 Do you give preference to Women Entrepreneurs?
A : Yes, we give preferences to women entrepreneurs having good business set up as well as
prospects.
Deposit products related:
Q.30 How do you determine profit rates on deposits?
A : Islamic Financing is guided by Islamic Shariah Principles. To eliminate “RIBA” in profit on
deposit, we declare provisional rates which are based on actual profit of prevoius year finalized at th time of final weightage
calculation.
Q.31 What are the deposit periods?
A : MTDS
For institutions-06 months and above.
For Individulas-06 year and above.
Schemes
02 years and above.
General Questions:
Q.32 What are the sources of your fund?
A : Our capital consists of-
(a) Share Capital
b) Reserve
(c) Deposit from Banks
(d) Deposit from Institutions
(e) Deposit from Public
(e) Borrowing Finance from Banks operating under Islamic Principles.
Q. 33 Traditional Bank or FIs take interest or give interest and your company takes profit or give
profit but what is the difference between these two?
A: Interest is the fixed rate which a bank or FIs takes or provides. It has no relation with profit.But
we take profit from clients in the form or rent or mark-up and provide profit based on our yearly
profit that comes from using deposotors money.However ,for the Central Bank system we keep
provision of profit on the basis of a provisional profit rate which is adjusted at the end of the year.
According to verdict of Allah interest is 'haram' but profit is "halal".Therefore in appropiate
procedure we have to earn profit and provide profit.
Q. 34 Who are the directors of IFIL?
A : Board of Directors in details 
Q.35 Do you have Shariah Board ? Who are members?
A : Yes, we have Shariah Board from the inceptyion of our company.
Following are the members of our Shariah Board :
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Dr. Md.Mustafizur Rahman,Prof,Arabic & Islamic Studies University of Dhaka
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Chairman
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M.Azizul Huq,Director,IFIL
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Member
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Mawlana Ruhul Amin Khan, Executive Editor,The Daily Inkilab
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Member
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| Advocate Nazrul Islam,Sr. Advocate,Bangladesh Supreme Court |
Member
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Prof. Dr. Md Azhar-Ud-Din,Dean,Atish Dipankar University of Science & Technology
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Member
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Md. Monsururr Rahman,Treasurer,Bangladesh Islamic University
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Member
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| Md. Mokhlesur Rahman,GS,Central Shariah Board for Islamic Banks of Bangladesh |
Member
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| Md. Rabiul Islam,Managing Director,IFIL |
Member
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Q.36 Why don’t you do business on profit-loss sharing basis in normal case?
A : Initially the concept of profit-loss sharing basis finance was introduced by IBBL under Musharaka mode which does not work. According to customers psychology towards maintaining Islamic principal in business, there are a few customers with whom profit-loss sharing basis business can be conducted. We have done some very selectively.
Q.37 Do you have any relationship with Islami Bank?
A : Only busines relationship not in ownership.
Q.38 Who are in the top management team?
A :
Janab M. Rabiul Islam - Managing Director.
Janab Quazi Aziz Arshad - Deputy Managing Director.
Janab Rezauddin Ahmed - EVP & Co.Secretary.
Q.39 What is Musharaka, Murabaha, Mudaraba?
A : Musharaka (Equity participation ,may be participation in management also ,distribution of profit predined andloss ratios. )
Murabaha (Price + Mark Up declared)
Mudaraba (FI- Capital Supply only no participation in management.Distribution of profit in pre-determined ratios ,loss in entirely to the capital supplier and Client- Business Acumen+ Expertise)
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