Islamic Business Finance

Fulfil your liquidity demand with first of kind Shariah-compliant solution dedicated to the SMEs. Islamic Business Finance is an innovative Riba-free banking solution which helps you to meet your cash demand.

Features and Benefits

  • Fixed monthly rental payment
  • No compound calculation
  • Tenure: 9 months to 60 months
  • Flexible repayment option

How does it work?

  • Customer sells a part of tangible asset to the bank to obtain cash.
  • Bank and customer jointly owns the asset.
  • Bank will lease its part to the customer to use and the customer will pay monthly rent for this purpose.
  • Gradually customer will also buy backs the bank’s share in the asset by paying principals.
  • At the end of the tenure, the customer will buy back the whole portion of the bank’s share and become sole owner of the asset.

Shariah Pronouncement

﴿بسم الله الرحمن الرحيم﴾

الحمد لله رب العالمين، والصلاة والسلام على رسول الله، وعلى آله وصحبه أجمعين.

All praise to Allah and May peace and blessings be upon his messenger, his family, his companions and all followers of his guidance.

Shariah Structure of the Product

  • This is a combination of lease and sale contract named Diminishing Musharkah/ Musharakah Mutanaqisa
  • To finance the customer, bank buys a portion of a tangible asset from the customer.
  • Bank will allow the customer to use its portion under lease contract.
  • The customer will pay rent for the agreed period and gradually buy back the portion of bank.
  • After paying the final installment the customer will buyback the whole portion of bank and the ownership will be transferred to the customer.

Approval of Shariah Supervisory Committee

The Shariah Supervisory Committee of City Bank has reviewed Islamic Asset Backed Finance documentation, related contracts and process.

Therefore, We the “Shariah Supervisory Committee” for City Bank confirm that in our opinion the “Islamic Asset Backed Finance” is in accordance with the Ijarah Muntahia Bittamleek principle of Islamic finance and hence we allow the bank to provide this product to its customer.

And Allah Knows Best.


Dr. Md. Anwar Hosain Molla

Shariah Supervisory Committee, City Bank
This certificate was signed on Tuesday 11th May 2021