Islamic Investment & Finance
Cooperatives Group

Business Loans

Main Types of Business-Related Micro enterprises:

General and Specific Trading

These are businesses that are engaged in the simple buying and selling of products and merchandise. The owners buy finished products and sell the same to the general consumers. Some may specialize in specific products for sale but generally does not produce or process the items themselves. Examples of these are market vending (vegetables, meat, fish, and fruits), market vending (ready made clothes, fancy items like cosmetics, imitation jewellery etc. for ladies, watches), retail grocery stores, ready-to-wear items, etc.

Service

Under this type are enterprises engaged in providing services for a fee. Examples of these are beauty parlors, auto repairs and mechanic, computer and electronic appliance repairs and maintenance, small training centers and similar activities.

Small-Scale Transport

Under this type are businesses engaged in providing transport or public conveyance, delivery of goods, equipment, machinery etc. Examples of these are zarange, taxi etc.

Small-Scale Manufacturing & Fabrication

Businesses under this type and classification include dressmaking, tailoring, bag manufacturing, leather products, handicraft, local furniture-making shops, cutlery and kitchenware products, and similar activities.

BRANCH - Business Loan Product

Features Details
Product
  1. Target Clients: Traders, Business and people engaged in manufacturing and services
  2. Loan Size: AFN 25,000 – AFN 200,000 (Loan Size would be decided by requested loan amount and loan applicant’s cash flows)
  3. Loan Repayment Term: 6 Months to 18 Months based on loan size and cash flow analysis.
  4. Installments: The loan amount should be paid 6 -18 equal monthly installments
  5. Mark-up payment: Borrowers have to remit Mark-up on monthly basis.
Price
  1. For loans, the Mark-up is 24% pa, on declining balance.
  2. Borrowers have to deposit 10% -20% of the loan amount (based on loan size) as Pledge Savings which would be returned at the time of completion of loan repayment.
Place
  1. Cash flow Analysis is done at borrower’s location
  2. Loan Disbursement and Loan repayment collection done at branch Office
Physical Evidence
  1. Loan application Form
  2. Tazkira of both Loan Applicant and Guarantors
  3. Residence Certificate Endorsement Letter
  4. Guarantor Form (one Guarantor for <AFN 50,000 and two for >AFN 50,000)
  5. Promissory Note
  6. Printed receipt
  7. Member Loan Pass Book
  8. Business permit, lease contract
Positioning
  1. Branch Business Loan is fully Sharia Compliant.
  2. Quick loan processing with less documentation.
  3. Prepayment of Loan is accepted.
  4. Size of the loan is tailored to meet the individual farmer’s needs up to maximum amount of AFN 200,000.
  5. Customer Friendly staff those are familiar with local culture, social and economic conditions.

SME Loans:

This product is designed for graduated borrowers of Business loans to assist them purchase new assets that will maximize their productivity.
Target clients are Medium business operators such Supermarket owners, whole sellers etc.

Features Details
Product
  1. Target Clients: Traders, Business and people engaged in manufacturing and services
  2. Loan Size: AFN 201,000 – AFN 700,000 (Loan Size would be decided by requested loan amount and loan applicant’s cash flows)
  3. Loan Repayment Term: 6 Months (minimum) to 24 Months (maximum) based on loan size and cash flow analysis.
  4. Installments: The loan amount should be paid 6 - 24 equal monthly installments
  5. Mark-up payment: Borrowers have to remit Mark-up on monthly basis.
  6. Security: Qabalah to show ownership along with 2 shopkeepers and this loan is not for startup business

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