BMI Bank, a Bahrain-based banking institution, and Tamkeen have launched a new Sharia-compliant financing scheme for enterprises within the local private sector to bolster the segment within the country.
According to the bank, the financing scheme will offer a suite of Sharia-compliant financial products under the umbrella of the Islamic Financial Services division within the bank.
As part of the agreement, Tamkeen will guarantee 50% of the total financing amount as well as subsidize 50% of the profit payments due from customers.
The scheme offers a range of trade finance products such as letters of credit and guarantee, Murabaha financing which covers working capital, auto and equipment financing as well as Ijara financing at a subsidized profit rate of 4% per annum on reducing balance with an option of a longer repayment tenor of up to 10 years.
BMI Bank CEO Jamal Al-Hazeem said through the launch of this Sharia-compliant financing scheme created in partnership with Tamkeen, BMI bank will now be able to deliver on the commitment towards providing a truly innovative financial solution that has been created specifically for this segment.
These facilities will offer enterprises quick and convenient access to finance to meet their expansion plans resulting in enhanced productivity. The finance is offered to them at a subsidized profit rate of 4% per annum on reducing balance with an option of a longer repayment tenor of up to 10 years.