Islamic Financing Program (Murabaha)

The program extends financing to the Palestinian SMEs according to the Islamic rules and regulations “Murabaha”. It is financed by a co-financing agreement signed with the Islamic Development Bank (IDB). Under this agreement the IDB commitment is $ 10 million and the PBC commitment is $ 2 million. This fund will be utilized to provide financing and technical assistance to the Palestinian SMEs. Until now the SLU has received $ 2.6 million out of this agreement.

• Loan Size: From $ 5,000 - $ 25,0000.
• Loan Period: From 1 to 4 years with a maximum grace period of 6 months.
• Repayment: Method: Depends on the project cash flows. It may be collected monthly, quarterly, semi-annual, annually or seasonal particularly in the case of agricultural projects.
• Murabaha Fees and Profit: The program extends financing to projects according to the Islamic Laws and Regulations “Murabaha” with a percentage of 6.5%.
• Collateral and Guarantees: The client has to provide adequate collateral and guarantee. The collateral and guarantees varies in Palestine from one region to another according to the legal situation. Mainly one or more of the following types of collateral and guarantees can be accepted:
  1. Termination benefits and provident funds of employees working in recognizable NGOs.
  2. Cars with comprehensive insurance.
  3. Bank guarantee.
  4. Registered land (Taboo).
  5. Apartments registered in the Taboo.
  6. Corporate Stocks traded in Securities Exchange Markets.
  7. Any other accepted legal collateral.

• Download MSWORD Financing Application.
• Download PDF Financing Application.
• Financing and Loan Applications are accepted only through our area Loan Officers. For inquires and applying for financing please consult our Loan Officer in your area.