Al huda islamic modesagricultural financing_20-10-2008-lahore

Islamic Modes for Agricultural Financing PRODUCTS – Murabahah and Salam Lahore 16 – 17 May, 2008 Al – Huda Training Programme ,[object Object],[object Object],[object Object]

Islamic Modes – Agricultural Financing ,[object Object],Acquisition of land/ Choice of crop Preparation of land Crop production operations Harvesting Post harvest & Marketing Entering Contract of cultivation in case of rented land, decision about crop in view of market demand STAGE ACTIVITY Sowing/transplantation, Irrigation, Fertilization, Weeding, Pesticide application ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Islamic Modes – Agricultural Financing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Islamic Modes – Agricultural Financing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],Islamic Modes – Agricultural Financing

Training Workshop – Islamic Microfinance ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Theory & Practice of Murabahah ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Training Workshop – Islamic Microfinance ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Theory & Practice of Murabahah ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],Theory & Practice of Murabahah Bank Client MOU/Master MFA Approval of Limit 2 1 Requisition, Undertaking, Sec. Dep. 3

[object Object],[object Object],[object Object],[object Object],Theory & Practice of Murabahah Client Bank Supplier 3 2 Agency Agreement Payment Supplier Agent (3 rd Party) Bank Supplier 2 1 Agency Agreement Payment Agent (Client) Receipt of Payment 3 Draft of Payment 2 A Receipt of Payment

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Theory & Practice of Murabahah Bank Agent (3 rd party) Supplier Title Goods Agent (Client) Risks and Responsibilities

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Theory & Practice of Murabahah

[object Object],Theory & Practice of Murabahah Client Acceptance of Offer 1 2 3 Offer to Purchase Receipt , Possession Report ,[object Object],Bank Sec. Deposit/Hamish jiddiyah Urboun /Securities 4 3 DP Note Murabahah Terminates 1 Bank Client Murabahah Price 2

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Theory & Practice of Murabahah

Theory & Practice of Murabahah Pricing of Murabahah [Example]: 105000+3107= 108107 Murabahah Price 105000 x 12% x 90/365 = 3107 10%+2% = 12% p.a. Profit 100000 + 5000 =105000 100000 x 5% Total cost 5% of cost Freight/Insurance 10% p.a. Six monthly KIBOR Kibor + 2% Rate of Profit Rs. 100,000 Cost of goods Amount (Rs.) Particulars

Theory & Practice of Murabahah ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Islamic Modes/Instruments - Sale Contracts: ,[object Object],[object Object]

Islamic Modes/Instruments - Sale Contracts: ,[object Object],[object Object],[object Object]

Islamic Modes/Instruments - Sale Contracts: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Islamic Modes/Instruments - Sale Contracts: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Islamic Modes/Instruments - Sale Contracts: ,[object Object],[object Object],[object Object],[object Object],[object Object]

Bank Client Payment of Salam Price 1-1-2007 Delivery of Goods 30-6-2007 Salam Transaction Agent Third Party

Client Delivery of Commodity 20 Dec 06 Purchaser MFI Third Party 2nd Salam 15 June 06 Delivery of Commodity 20 Dec 2006 Parallel Salam Salam Sale Contract 1 June 06 1 2 5 Salam Price Payment 1 June 06 2 nd Salam Contract Payment of Price Client Delivery of Commodity 20 Dec 06 Purchaser Bank Third Party 2nd Salam 15 June 06 Delivery of Commodity 20 Dec 2006 Salam Sale Contract 1 June 06 1 2 5 3 4 Salam Price Payment 1 June 06 2 nd Salam Contract Payment of Price 6 15 June 06

Client Delivery of Commodity 20 Dec 06 Purchaser Bank Third Party Promise and Payment Delivery of Commodity 20 Dec 2006 Third Party Promise Salam Sale Contract 1 June 06 1 2 5 3 4 6 Salam Price Payment 1 June 06 Pays 20 Dec 06 Promise to Purchase 15 June 06

Islamic Modes/Instruments - Sale Contracts: ,[object Object],Murabaha can be executed in particular commodity. Salam is not executed in the commodity of particular specifications or the commodity from particular origin Price can be paid on spot or differed, lump sum or in installments Price has to be paid in full Good is delivered at spot, payment of price is deferred Delivery of good is deferred, price is paid at spot Murabahah Salam

Al huda islamic modesagricultural financing_20-10-2008-lahore

Recommended

Recommended

More Related Content

Viewers also liked

Viewers also liked (17)

Similar to Al huda islamic modesagricultural financing_20-10-2008-lahore

Similar to Al huda islamic modesagricultural financing_20-10-2008-lahore (20)

More from Alhuda Centre of Islamic Banking & Economics

More from Alhuda Centre of Islamic Banking & Economics (20)

Al huda islamic modesagricultural financing_20-10-2008-lahore