Wakala Overdraft

A Wakala is  a structure that utilizes the idea of principal and agent theory. The principal provides the capital, and the agent gets hired to provide expertise and labor. Under this scheme, the Bank will act as Muwakil (Principle) and the client will as Wakeel (Agent). The client will work on the Principle’s money in Sharia-compliant investment businesses. Both parties will agree that the client (Agent) will pay the expected profit rate to the Bank (Muwakil) on annual basis. Whatever exceeds from the expected profit rate, will be paid to the Agent as an incentive.

FMFB-A Corporate Wakala financing is perfectly designed to fulfill the cash-based needs of the SMEs and Corporate clients.  

Features and Benefits

• Availability of multiple currencies (AFN, USD)
• Finance Limits:
  • SMEs: AFN 500,001 to AFN 15,000,000 or equivalent in USD
  • Corporate: AFN 15,000,001 to AFN 300,000,000 or equivalent in USD

• The Profit Margin is based on mutual agreement
• The Grace Period ranges from zero to three months depending on the nature of the business cashflow
• Partial Payment is allowed
• The financing Term is from six months to one year

Security Requirements

• The original title deed of the property
• Guarantor/Stock Registered/Equitable Mortgage of Property
• Hypothecation charge on entire present & future current assets of the business
• Personal/Financial guarantees
• Presentment of original NID, Valid Business Licenses, and Sharia or Urofi title deed

How to Apply

For more information please call our Customer Service Centre by dialing 599 or visiting any of our branches.