Islamic Investment & Finance
Cooperatives Group

Agriculture SCFA

Agricultural Shariah Compliant Financing Advances (SCFA)

Description Features of the Product
Type of financing It is the financial assistance extended to qualified clients for agricultural purposes. This may include working capital to buy seeds, fertilizer and purchase agriculture equipment
Target area Rural
Market segments Farmers- residents in the operational area.
Age of Client at the time of loan 18 – 65 years
Service charges rate As per policy of IIFC Group
Murabaha loan period 6 to 12 months
Loan size AFN. 10,000 to 200,000 depending on the repayment capacity of the client
Frequency of installment 6 to 12 months based on the production cycle for framing, machinery, maximum SCFA term can be up to 12 months. Mode of payment of principle is lump sum for short term ASCFA and for long terms regular payment includes both markup and principle.
Lending methodology Individual loan
Collateral type
  • Social collateral – guarantee of family head and two shopkeepers
  • For female client – family head acceptable

For Medium SCFAs at least two guarantors are required to guarantee such SCFAs. If applicable, IIFC Group may also require the borrowers to present original property documents to IIFC Group as collateral. In addition, to two guarantors.

Identification source Cop of Tazkira( NID) and a recent photo of client and guarantors
Purpose of Murabaha loan Increase income
Previous experience Experience in agriculture activities
Physical verification Client’s residence and agriculture activities

Shura Khat / Wakil Guzar verification or electricity bill of house

Cash flow assessment By Loan Officer in the field

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