Credit Facilities through Islamic Contracts
Bank Keshavarzi plays an important role in meeting needs of agricultural producers, food-processing industries, commercial sub-sector in agriculture, and associated services. The distribution of credit in BK is proportioned to credit-absorbing capacities in sub-sectors of the agriculture sector and through various Islamic contracts and according to Riba free banking operations which are mostly in the form of installment sales (31.5%) and civil partnership (43.7).
Objectives
Contribution to production, employment, development of the agriculture sector and associated activities
Service Types
Types of credit facilities granted based on Islamic contracts:
- Qard-Al-Hassanah Credit Facilities
- Civil Partnership
- Installment Sale
- Hire purchase
- Forward Transactions
- Factoring and
- Types of Credit Facilities based on Resources Use
- Fixed investment
- Working Capital
- Operating =Costs
Accessibility: Applying for credit facilities by customers and receiving the requested credit within branches working hours.
Clients: All natural and legal persons, whose legal competence and projects have been justified and approved.
Delivery Mode: Through BK nation-wide branches
Break-down of BK Facilities by Islamic Contracts
|
Year
Contract
|
2010-2011
|
2009-2010
|
|
Amount
|
Share (%)
|
Amount
|
Share (%)
|
|
Civil Partnership (JV)
|
41,147
|
43.7
|
21,573
|
31.9
|
|
Installment Sale
|
29,700
|
31.5
|
27,511
|
7.40
|
|
Mudharabah
|
10,662
|
11.3
|
6708
|
9.9
|
|
Forward
|
6,661
|
7.1
|
6,685
|
9.9
|
|
Qard-al-Hassanah
|
5,459
|
5.8
|
4741
|
7
|
|
Jo'alah
|
386
|
0.4
|
287
|
0.4
|
|
Hire Purchase
|
223
|
0.2
|
128
|
0.2
|
|
Total
|
94,238
|
100
|
67,633
|
100
|