Advance Payment

Get Early Profit Access Without Breaking Shariah Principles

Advance Payment is a Shariah compliant term deposit solution for customers who need early liquidity from their investment for planned personal or business expenses such as education fees, rent, or operational needs.

With Advance Payment, you receive provisional profit every 15 days, instead of waiting until maturity.

• Investment tenure options: 3 months, 6 months, and 1 year
• Provisional profit payout every 15 days
• Minimum investment amount: PKR 100,000
• Premature encashment allowed as per applicable terms and conditions
• Withholding tax and Zakat applicable as per government regulations
• Fully Shariah compliant, based on the Mudarabah principle

Advance Payment is structured on Mudarabah, a Shariah-compliant partnership model.

Simple Explanation

• You invest your funds with BankIslami under a Mudarabah arrangement
• You are the Rabb ul Maal (owner of funds)
• BankIslami acts as the Mudarib (fund manager)
• Your investment becomes part of a pooled fund
• This pool is invested in Shariah-compliant financing assets
• Income generated from these assets is shared between you and the Bank based on a pre-agreed profit-sharing ratio

Profit Distribution

• Income from the investment pool is calculated on a daily basis
• Profit is distributed monthly based on assigned weightages
• The Bank’s share is known as the Mudarib’s share
• Profit rates are announced at the beginning of each month, based on actual performance

In Case of Loss

• As per Mudarabah rules, any loss is borne by the Rabb ul Maal in proportion to their investment
• The Bank does not earn any income in case of loss and bears all operational costs

Q. Who is this product for?
Advance Payment is suitable for individuals, businesses, and institutions that require early access to profit from their investments.

Q. What is Mudarabah?
Mudarabah is a Shariah-compliant partnership where one party provides funds (Rabb ul Maal) and the other party manages the investment (Mudarib). Profits are shared according to a pre-agreed ratio, while any loss is borne by the fund provider unless it results from negligence or breach of agreed terms.

Q. How is profit calculated?
Profit is calculated at the end of each month based on income earned from the Shariah-compliant investment pool. After deducting the Bank’s Mudarib share, the remaining profit is distributed among depositors according to assigned weightages.

Q. What is the relationship between the customer and BankIslami?
The customer provides funds as the Rabb ul Maal, while BankIslami acts as the Mudarib by managing the funds. Both parties share profit as per agreed ratios. In case of loss, the customer bears the loss proportionately, and the Bank earns no return for its efforts.

Q. Is profit guaranteed?
No. As per Shariah principles, profit cannot be guaranteed or committed upfront. Previous profit rates may be shared for indication purposes only.

Q. Who ensures Shariah compliance?
Advance Payment is reviewed and approved by BankIslami’s Shariah Supervisory Board. Regular internal and external Shariah audits are conducted, including audits by the State Bank of Pakistan, to ensure ongoing compliance.

Q. How can I invest?
Visit your nearest BankIslami branch or speak to our banking team to learn more about Advance Payment and determine whether it suits your financial needs.