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Business - Istisna Project Financing


We support entrepreneurship, business ventures and also offer our services in assisting ventures into developing your own property either for sale or for rental. Under this Shariah compliant concept we act as the main contractor to construct the property on your behalf. We will then appoint a construction company of your choice to perform the task.

        

Main Features

Maximum repayment period of 10 years (for Personal use up to 20 years)

-       Bank profit rates:

o   If property use is for commercial

-  Profit rate at 10.50% - Owners Equity should be 20%

Profit rate at 10.25% - Owners Equity should be 30%

-  Profit rate at 10.00% - Owners Equity should be 40%

-  Profit rate at 09.50% - Owners Equity should be 50%

o   If property use is for personal

-  Profit rate at 09.00%

Eligibility

Individuals

-        Maldivian with valid resident identification card

-      Age between 18 to 55 years

-         Customer should provide minimum 20% of the BOQ price with cash or completed works.

-         Earn sufficient income to pay the construction period monthly profit payment:

o   Payment options for this period:

-  Salaried income (maximum monthly profit payment should not exceed 50% of the salary)

-  Verifiable Agreement Income 

-  Or deposit to bank the total construction period profit payment in lump sum

-         Projected Income from the proposed building should cover the monthly facility payment for the tenure

 

Corporates

-         Minimum 2 years of experience

-         Customer should provide minimum 20% of the BOQ price with cash or completed works.

-         The total construction period profit payment should be deposited in lump sum.

-         Projected income from the proposed building should cover the monthly facility payment for the tenure

 

Contractor Eligible Criteria

-         Detailed BOQ (Adress to MIB)- All pages stamped and signed by the construction company

-         Payment Schedule and Work Schedule of the contractor stamped and signed

-         Contractor Profile (Company Profile, management profile, ID card copies, GST registration certificate, Company registration certificate, National Contractor`s Registration Certificate, Portfolio of projects completed and ongoing projects.)

-         Audited Financials of the past 3 years and current year management accounts

 

Security/ Collateral

-        mortgage over the land and the Proposed building to be constructed

 

How to apply for Istisna Project Financing

Obtain application form from the Business Department of MIB or download from the website. Complete the application form and submit along with the required documents.

 

How to apply for Istisna Project Financing

Obtain application form from the Financing Department of MIB or download from the website. Complete the application form and submit along with the required documents mentioned below.


Documents Required

  • Completely filled application form

  • Copy of valid ID cards of company's directors

  • Copy of Registration certificate of the business

  • Copy of memorandum of articles of the company/ Copy of the partnership agreement if a partnership

  • Profile of the company/business

  • Forecasted Cash flow statement for 3 years (monthly cash flow for 1 year.)

  • Bank statement of the company/partnership (for last 6 months)

  • Last three years audited financial report of the company/partnership

  • Current year management accounts of the company/partnership

  • BOQ from the contractor with summary for each floor

  • Schedule of payment by Contractor along with work schedule

  • Profile of the constructer

  • Approved Drawing & Construction Permission by Male' City Council

  • Collaterals

    • Registration/Title document of the collateral(copy, original required if approved)

    • No objections from owner(s) of collateral to be mortgage from the facility