Gold Based Financing

Pakistan Mein Pehli Baar — Islamic Gold-Based Financing

Meet your dire financial needs with BankIslami Gold-Based Financing, a Shariah-compliant financing solution that allows you to obtain financing against the pledge of your gold, while your gold remains securely held by the Bank.

Designed for individuals seeking a Halal alternative to conventional financing, this facility provides liquidity for essential personal needs with transparency, security, and peace of mind.

About BankIslami’s Gold-Based Financing

Gold-Based Financing is a Shariah-compliant consumer financing facility, structured in accordance with Islamic principles and approved by BankIslami’s Shariah Board.

Under this facility, customers may obtain financing against the value of their gold for genuine and approved personal needs, while ownership of the pledged gold remains protected and securely held by the Bank until settlement.

This product serves as an Islamic alternative to conventional gold loans and interest-based financing.

Why Choose BankIslami Gold-Based Financing?

• 100% Shariah-Compliant Structure
  Based on Tawarruq, approved by the Bank’s Shariah Board.
• Instant Liquidity Against Gold
  Finance up to 70% of your gold’s net value.
• Secure Custody
  Your gold is safely stored in BankIslami’s secured vaults.
• Flexible Tenure
  Payment options: 1-4 years.
• No Usage Restrictions (Within Shariah Limits)
  Financing for genuine, Dire Needs.

Financing Details

• Financing Amount:
  PKR 250,000 up to PKR 5,000,000*
• Bank Investment Ratio (BIR):
  Up to 70% of net gold value*
• Tenure:
  1 to 4 Years
• Profit Rate:
  Benchmark-linked (as communicated in the Offer Letter)
• Charges:
  Processing and valuation charges as per the Bank’s Schedule of Charges

*Terms & Conditions apply

Gold-Based Financing is available to:

• Salaried individuals
• Self-employed professionals
• Businesspersons

Subject to eligibility criteria, including:

• Minimum income requirements
• Acceptable credit history
• SBP and BankIslami policies

Purpose of Financing

This facility is available for genuine, Shariah-compliant personal needs that meet the requirements below.

• Medical expenses
• Education
• Marriage-related expenses
• Paying off conventional liabilities

Safety & Protection of Your Gold

• Valuation by Bank-approved goldsmiths
• Gold sealed in tamper-proof bags
• Stored under dual control
• Covered under Takaful during the financing tenure

How to Apply

Visit your nearest authorized BankIslami branch to apply for Gold-Based Financing.

For further assistance:

Phone: 111-ISLAMI (111-475-264)
website: www.bankislami.com.pk
Email: [email protected]

1. What is Gold-Based Financing?

Gold-Based Financing is a Shariah-compliant consumer financing facility that allows customers to obtain financing against the pledge of their gold ornaments, while the gold remains safely secured with BankIslami until full settlement.

The facility is offered strictly for genuine and Shariah-compliant personal needs.

2. Is this product Shariah-compliant?

Yes. This product is fully Shariah-compliant and approved by BankIslami’s Shariah Board.

The financing is structured on Tawarruq, using Shariah-compliant Mutual Fund Units (MFUs) as the underlying asset, in line with SBP and AAOIFI guidelines.

3. How is this different from conventional gold loans?

Unlike conventional gold loans:

• No interest (Riba) is charged
• Financing is based on the sale and purchase of assets, not lending money
• Late payment charges are treated as charity, not bank income

4. What is Tawarruq and why is it used?

Tawarruq is a Shariah-approved mechanism used to generate liquidity through:

• Purchase of a Shariah-compliant asset
• Sale of that asset on deferred payment
• Redemption of the asset for cash

This structure ensures:

• Asset-backed financing
• No Riba

5. Can I use the financing amount for any purpose?

The facility is available for dire and genuine personal needs below:

• Medical expenses
• Education
• Marriage-related expenses
• Paying off conventional liabilities

Any other purpose may require prior Shariah approval.

6. How much financing can I avail?

• Minimum: PKR 250,000
• Maximum: PKR 5,000,000
• Up to 70% of the net value of pledged gold (Bank Investment Ratio)

7. How is the value of my gold determined?

Your gold is:

• Valued inside the branch
• Assessed by BankIslami-approved goldsmiths
• Evaluated based on net gold weight and purity only (minimum 21 karat)

Stones, alloy, wax, or other materials are excluded from valuation.

8. Where is my gold kept?

Your gold is:

• Sealed in tamper-proof bags
• Stored in fireproof vaults
• Held under dual control
• Covered under Takaful for the entire financing tenure

9. Who can apply for Gold-Based Financing?

This facility is available to:

• Salaried individuals
• Self-employed professionals (SEPs)
• Businesspersons

Subject to:

• Minimum net disposable income of PKR 80,000
• Satisfactory credit history
• SBP and BankIslami eligibility criteria

10. What is the financing tenure?

You may choose a tenure between:

• 1 year to 4 years

Monthly instalment payments apply.

11. What is the profit rate?

The profit rate is linked to:

• 1-Year KIBOR + approved spread

The final rate is communicated through the Offer Letter.

12. Are there any processing or valuation charges?

Yes. Applicable charges include:

• Processing fee (as per Bank’s Schedule of Charges)
• Gold valuation charges (paid at actual to the goldsmith)
• Applicable government taxes (FED)

All charges are disclosed upfront.

13. Is early settlement allowed?

Yes. Early or partial settlement is allowed.

Any rebate on unearned profit, if applicable:

• Is not pre-agreed
• Requires prior Shariah approval
• Is granted strictly at the Bank’s discretion

14. What happens if I delay an instalment?

In case of late payment:

• Charity is charged, not a penalty
• Charity is credited to the Charity Fund
• Charity does not form part of the Bank’s income

This mechanism is strictly Shariah-compliant.

15. Can the charity amount be waived?

Charity waiver may be considered:

• Only in genuine hardship cases
• Subject to Shariah approval
• As per the Bank’s approved authority matrix

Once credited, the charity amount cannot be reversed.

16. What happens if I am unable to pay the financing?

If installments remain unpaid beyond the defined period:

• The Bank may liquidate the pledged gold
• Proceeds are used to settle outstanding dues
• Any surplus amount is returned to the customer

All such actions are carried out after Shariah review.

17. What happens in case of the customer’s death?

In case of death:

• Financing is settled through successors or Takaful (if applicable)
• Gold is released upon settlement
• If successors do not claim the gold, it may be auctioned
• Any surplus proceeds are returned to the legal heirs

18. Can I get my gold back before maturity?

Yes, once:

• All outstanding dues (including charity, if any) are settled
• Formal settlement process is completed

Gold is returned within defined operational timelines.

19. Is Takaful mandatory?

Yes.

• Gold ornament Takaful is mandatory
• Life Takaful is optional (subject to availability)

20. How can I apply?

You can apply by:

• Visiting an authorized BankIslami branch
• Contacting Phone Banking: 111-ISLAMI (111-475-264)
• Emailing [email protected]