Meezan Bank Limited, a publicly listed company, is the first and largest Islamic Bank in Pakistan and one of the fastest growing banks in the history of the banking sector of the Country. Having the largest branch network and product range, Meezan Bank bears the critical responsibility of leading the way forward in establishing a stable and dynamic Islamic banking system replete with dynamic and cutting-edge products and services. Meezan Bank aims to fulfill its prime objective of providing customers accessibility and convenience, within an atmosphere and culture of dedicated service and recognition of their needs. Meezan Bank has developed an extraordinary research and development capability by combining investment bankers, commercial bankers, Shariah scholars and legal experts to develop innovative, viable, and competitive value propositions that not only meet the requirements of today’s complex financial world, but do so with world-class service excellence which our customers demand; all within the bounds of Shariah.

MUSHARKAHEasy Home is a Shariah-compliant Home Finance facility! One that is comprehensive, affordable, and totally hassle-free. Meezan Bank is committed to meet our customers’ needs in a truly Shariah-compliant manner coupled with dedicated service excellence. Why not have the best of both worlds? Isn't that what you are working so hard for anyway? Easy Home not only allows you to own your own home by paying easy installments but also keeps you safely away from interest based financing.  Easy Home works on a Diminishing Musharakah basis With Easy Home you participate with Meezan Bank in joint ownership of your property, where the Bank will provide a certain amount of financing. You agree to a monthly payment to the bank of which one component is for use of the home, and another for your equity share. In fact, the total monthly payment is reduced regularly as your share in the property grows. When you have made the full investment, which had been agreed upon, you become the sole owner with a free and clear title to the property.

 Key Features

Flexibility and Variety to meet you requirements 

Flexible Financing Tailored to Support You

High financing amounts Adequate financing against property value Flexibility to make partial prepayments Minimal processing charges Affordable and competitive instalment amounts with a regular reducing monthly rental Rate relaxation for select MNCs & LCGs

 Quick Processing TimeAbsolutely hassle-free. Quick turn-around-times, with no burdensome complexity or excessive paper work. It is simple, halal, and easy! Click here for details

 Even the eligibility is Easy!We at Meezan Bank, as prescribed by Islamic Shariah, seek to guarantee equal access to financing for all qualified applicants, while ensuring that the qualification process is bias-free. Click here for details

 Non Resident PakistanisNon Resident Pakistanis can apply with peace of mind for the fastest processing of their case.

Easy Builder

For that special home you want to build! Easy Builder allows you to get financing for

Residential construction on applicant’s owned land Purchase of land & residential construction Enhancement of an already constructed residential bungalow

Features: Flexible financing from PKR 300,000/- to PKR 40 million for Salaried, SEP, NRP Customers and

from PKR 300,000/- to PKR 5 Million for Businessman Customer. Easy selection of financing tenure from 2 years (excluding construction period of max 12 months)

to 20 years.

Easy Replace

Transfer your existing mortgage!

 You can now continue to enjoy your home, but with the added satisfaction and peace of mind you always wanted. Meezan Bank will help you switch your existing liability over to us and let you enjoy the benefits of Halal and totally flexible financing. Features:

Flexible financing from PKR 300,000/- to PKR 40 million for Salaried, SEP, NRP Customers and from PKR 300,000/- to PKR 5 Million for Businessman Customer. Easy selection of financing tenure from 3 years to 20 years 

 

MUDARBAH

Monthly Mudarabah CertificateEnsuring Short-term Halal Investments with Competitive Returns

The Riba-Free Monthly Mudarabah Certificate (MMC) is a short-term deposit product which has been designed to give you expected monthly returns. Monthly Mudarabah Certificates work on the principle of Mudarabah under which the customer is an Investor (Rab-ul-Maal), and the Bank is the Manager (Mudarib) of the funds deposited by

the customer. The Bank allocates the funds received from the customers to a Deposit pool; funds from the pool are utilized to provide financing to customers under Islamic modes that include, but are not restricted to Murabaha, Ijarah, Istisna and Diminishing Musharakah. The Monthly Mudarabah Certificate is available for Individuals and businesses including Sole Proprietorships, Partnerships and Limited Companies.

Key Features

Minimum Investment required is Rs. 100,000/-

Investment period is one month with re-investment option available on a continuous basis

Monthly profit payment will be made to your Meezan Bank account Pre-mature withdrawal can be made as per approved schedule

Profit sharing & Distribution Method The Bank calculates the profit of the deposit pool every month. Gross income of the deposit pool is shared between the Bank (Mudarib) and customers (Rab-ul-Maal) on the basis of a predetermined profit-sharing ratio announced at the beginning of the month. The profit is distributed amongst the Account holders on the basis of predetermined weightages, announced at the beginning of the month. In case of a loss, as per the rules of Mudarabah, the Rab-ul-Maal shall bear the loss in the ratio of their investment. Profit Sharing Ratio 

Bank will share 50% of Gross Income as Mudarib Depositor will share 50% of Gross Income as Rab-ul-Maal

 IJARAH

Car Ijarah

As a step towards Meezan Bank’s mission to provide a one-stop shop for innovative value-added Shariah compliant products, Meezan Bank’s Car Ijarah unit provides car financing based on the principles of Ijarah and is free of the element of interest. Car Ijarah is Pakistan’s first Interest Free car financing based on the Islamic financing mode of Ijarah (Islamic leasing). This product is ideal for individuals looking for car financing while avoiding an interest-based transaction. Meezan Bank’ Car Ijarah is a car rental agreement, under which the Bank purchases the car and rents it out to the customer for a period of 3 to 5 years, agreed at the time of the contract. Upon completion of the lease period the customer gets ownership of the car against his initial security deposit.

Car Ijarah also features Used Vehicles

In addition to leasing of new cars, Meezan Bank also provides the unique opportunity of leasing second hand, both locally assembled and imported vehicles. This feature is specifically designed as a highly economical option. The Used Car Ijarah facility is made available at a minimum-security deposit as low as 20%. Financing of used cars are subject to a selection criteria. Key Features of Car Ijarah

Low monthly rental Rental paid after delivery, not in advance Fastest processing and delivery Tracker option available Minimum security deposit as low as 10% All new, used, local, imported and luxury vehicles can be financed

Shariah compliance

Car Ijarah, designed under the supervision of Meezan Banks Shariah Supervisory Board, is unique to car leasing facilities provided by other banks.  

Rights & liabilities of Owner v/s UserAn Islamic Ijarah is an asset-based contract, i.e. the Lessor should have ownership of the asset during the period of the contract. Under Islamic Shariah, all ownership related rights and liabilities should lie with the owner while all usage-related rights and liabilities should lie with the user. A conventional lease contract does not distinguish between the nature of these liabilities and places all liabilities on the user of the asset, which is contradictory to Islamic Shariah.Under Ijarah, all ownership-related risks lie with the Bank while all usage related risks lie with the user, thus making the Lessor the true owner of the asset and making the income generated through the contract permissible (Halal) for the Bank. 

Continuation of lease rentals in case of total loss or theft of vehicleIf the leased vehicle is stolen or completely destroyed, the conventional leasing company continues charging the lease rent till the settlement of the Insurance claim. Under the Islamic system, rent is consideration for usage of the leased asset, and if the asset has been stolen or destroyed, the concept of rental becomes void. As such, in the above-mentioned eventualities, Meezan bank does not charge the lease rental. 

Takaful  instead of InsuranceLegally (in accordance to Pakistan’s Law and Regulations), it is required for all leasing entities to insure the leased assets. As such, Meezan Bank insures its leased assets. Meezan Bank insured its assets through Takaful only, which is the Islamic product for insurance. 

Permissibility for Penalty of Late Payment of Rent under Islamic Shariah

In most contemporary financial leases, an extra monetary amount is charged, in their income, if the rent is not paid on time. This extra amount is the considered as Riba and is Haram. Under Ijarah, the Lessee may be asked to undertake, that if he fails to pay rent on its due date, he will pay certain amount to a charity, which will be administered through the Islamic Bank. For this purpose the bank maintains a charity fund where such amounts may be credited and disbursed for charitable purpose.Basic Features - Normal Ijarah (Indus)

Parameters 

Details 

Asset (vehicle) All variants of IndusOwnership Ownership lays with Meezan Bank limitedPeriod of facility 3, 4 & 5 yearsPeriodicity Pre-determined monthly rentals

Advance Rent / Security depositMinimum 20% of cost of the vehicle Maximum 50% of the cost of the vehicle

Processing charges Rs. 4,000/-Takaful provisioning 4.25% with tracker

TrackerFree Tracker (no installation & monitoring charges) to be installed in all vehicles.

Free Accidental Death Coverage Upto Rs. 400,000/-Mode of payment Through post dated cheques

Unique Selling Points Pakistan’s first truly / completely Shariah-compliant Car Financing Scheme Lowest per month rent Priority delivery for all Indus variants (50%) Lowest processing charges Lowest up front payment First rent after one month of delivery Availability of Takaful Free accidental death coverage upto Rs. 400k Free Tracker (with installation & annual monitoring charges) Competitive Service

ISTISNA

Istisna’a is a contract of sale of specified items to be manufactured (or constructed), with an obligation on the part of the manufacturer (or contractor) to deliver them to the Customer upon completion.

Istisna’a is the second exception to the rules of sale where a sale is allowed without immediate delivery of the goods sold .

An Istisna’a contract is permitted only for goods which need to be created through a manufacturing or construction process involving labor.

It is not permissible that the subject matter of an Istisna’a contract be an existing and identified capital asset.

If complete specifications (such as type, kind, quality and quantity) of the subject matter have been given to the manufacturer along with the contract price, the contract cannot be terminated unilaterally by either party once the work on the contract has been started by the manufacturer.

The ultimate purchaser cannot be regarded as the owner of the materials in the possession of the

manufacturer for the purpose of producing the subject matter.

The time of delivery of goods does not necessarily have to be fixed in Istisna’a however, a maximum time may be agreed upon between the parties.

Upon the delivery of the produced subject matter the liability of the manufacturer in respect of the subject matter comes to an end and the liability of the ultimate purchaser begins.

It is necessary for the validity of Istisna’a that the price is fixed with the consent of the parties.

The Istisna’a price can either be paid in advance, or in installments or at the time of delivery of

goods or even after the delivery of goods.

The price of Istisna’a transactions may vary in accordance with variations in the delivery date.

It is permissible to amend the contract price of an Istisna’a contract upwards or downwards, as a result of intervening contingencies (Force Majeure).

It is permissible if it is agreed between the parties that in the case of delay in delivery, the price

shall be reduced by a specified amount per day.

Unlike Murabaha where only raw material can be financed, Istisna’a’ can be easily utilized to facilitate payment of overheads etc. in addition to the purchase of raw material

It is also to be noted that amount paid out as Istisna’a’ price to the manufacturer can be used by the manufacturer anywhere he deems fit. It doesn’t have to be utilized exclusively for the production process.

Order to Manufacture by Bank

Step 1: Client and MBL enters into an Istisn’a

Agreement under which MBL orders the client to manufacture a certain asset for MBL against

advance or deferred payment

Delivery of Asset by the Client

Step 2: After manufacturing the asset, the asset, the delivered to the bank by the client

Sale of Asset in the market

Step 3: After taking delivery bank sells the asset into the market either directly or by appointing

someone as his agent

Bank Order to Manufacture Client

Client Delivery of Manufactured Asset to Bank

Bank

Bank

Sale of Asset in the Market Marke

t

Application for Istisn’a

Ideally suited for catering financing needs of a manufacturing concern.

Short term liquidity management requirement of the customer.

In can also be used for financing construction of Houses, buildings and factories

SALAM

In Salam the seller undertakes to supply specific goods to the buyer at a future date in exchange of an advanced price fully paid at spot. The price is in cash but the supply of purchased goods is deferred.

This mode of financing can be used by the modern banks and financial institutions especially to finance the agricultural sector.

Purpose of use:

To meet the need of small farmers who need money to grow their crops and to feed their family up to the time of harvest. When Allah declared Riba haram, the farmers could not take usurious loans. Therefore Holy Prophet P.B.U.H allowed them to sell their agricultural products in advance.

To meet the need of traders for import and export business. Under Salam, it is allowed for traders to sell the goods in advance so that after receiving their cash price, they can easily undertake the aforesaid business. Salam is beneficial to the seller because the price is received in advance and it is also beneficial to the buyer because the price in Salam is lower than the price in spot sales.

The permissibility of Salam is an exception to the general rule that prohibits forward sale and therefore it is subject to strict conditions.