Nib International Bank introduced Interest-Free Banking (IFB) services in response to the growing demand from customers and the bank’s desire to serve financially excluded portion of the community. After obtaining the necessary operational permit from the National Bank of Ethiopia in September 2015, the bank officially launched its IFB services on December 19, 2015.
The Bank is offering the service to the customer under the Brand name of “NIB HALAL”.
Customers can get the IFB services of the bank across all branches of the Bank, alongside dedicated branches that exclusively offer interest-free banking services.
The Bank offers different range of Deposit and Financing products in compliance with the Shari’ah rules and principles ensuring that it is free from interest-based transaction.
The Bank offers IFB deposit products to esteemed customers under Mudarabah and Wadi’ah contract.
1. MUDARABAH DEPOSIT PRODUCT
Mudarabah (Profit or Loss Sharing) deposit account is a type of deposit contract where the bank (Mudarib) receives a deposit from customers (Rabul-Mal) and invests it in a permissible business venture; the profit generated from the business will be shared based on the pre-agreed profit sharing ratio.
The Bank offers different types of Mudarabah product that suits the customers’ demand;
Features and Value Proposition
It is a Mudarabah saving account that is designed for women.
Features and Value Proposition
C. Mudarabah Children Saving Account
Mudarabah Children saving account is a Children deposit account established to support children until they reach the age of 18.
Features and Value Proposition
D. Mudarabah Hajj Saving Account
Hajj Saving Account is designed for the individual who plans to perform Hajj or Umrah;
Features and Value Propositions
E. Mudarabah Equb Saving Account
Mudarabah Equb account is saving account targeted to establish Ekub with completing value proposition.
Features and Value propositions:
F. Mudarabah Social Saving Account
Mudarabah Social Saving Account is a saving account designed for socially established unions or Edir.
Features and Value propositions:
G. Mudarabah Fixed Time Deposit
Features and Value propositions:
2. WADI’AH DEPOSIT PRODUCTS
The Bank’s Wadi’ah deposit product operates in Wadi’ah Yad-Dhamanah contract, which is a form of contract, the Bank acts as the safe keeper or trustee for the fund deposited by the customer. Under the Wadi’ah Contract, the Bank offers different products to fit the customers demand, the products offered by the Bank is listed here under;
A. Wadi’ah Current Deposit
It is a type of Wadi’ah deposit product and designed for customers who opt to transact their money through chequebook.
Features and/or Value Propositions
B. Wadi’ah Saving /Normal/
Product Features and/or Value propositions
C. Wadi’ah Hajj
Hajj Saving Account is designed for the individuals who plan to perform Hajj or Umrah;
Features and Value Propositions
D. Wadi’ah Student
This account is prepared for secondary and tertiary level students to encourage their saving culture and to help meet the monetary requirement to complete their education.
Product Features and Value Proposition
E. Wadi’ah Zakat
A Wadi’ah-based deposit product which is designed for customers, who are eligible to pay the obligatory donation, to the needy, vested on them as per their religious order. The account will help customers to save money to meet this requirement.
Product features eligibility criteria
It is a Wadi’ah-based product, designed to encourage the saving culture of Children and to support them until they reach the age of 18.
Product Features and Value Propositions:
G. Wadi’ah Special Saving Account
This account is introduced for those who are interested in operating their saving account with the use of Cheque.
Features and Eligibility Criteria
It is a type of foreign currency account maintained in hard currency and can be used locally in ETB or transferred abroad in foreign currency without the necessity of obtaining exchange permit.
3. Murabahah (Cost Plus profit)
Murabahah is a contract of sale between a customer and a bank in which a bank purchases the goods needed by a customer and sells the goods to the customer on a cost-plus basis. Both the profit (make-up) and the time of payment (usually in installment) are specified in an initial contract. The bank is the owner of the goods before it sells it to the customer. The bank may require collateral from the customers to secure the finance.
Among the services included in Murabahah are the following;
Specific Requirements for Exporters
Specific Requirements for Importers
Specific Requirements for Manufacturer
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