Tawarruq Based Barakaat

This product targets members who would want to access products that are not necessarily asset-backed, for example;

• Takeover of interest-based loans.
• School fees.
• Medical expenses.
• Payment of salaries and taxes.
• Bill encashment and discounting for corporate clients.
• Insurance premium financing.
• Paying debtors.

The member shall approach the SACCO for financing, and the SACCO procures through its agent a Tawarruq commodity via an international exchange platform. The agent then sells the Tawarruq commodity at cost plus a mark-up.

The customer through another agent then disposes the Tawarruq commodity through a commodity exchange platform and the proceeds of sale are credited into the customer’s account at the SACCO.

Product Features:

• The maximum amount financed shall be up to 3 times the deposits.
• Maximum facility repayment period is 48 months.
• The member must be an active member of NSSF SACCO for a period of 3 months.
• Facility security shall be guarantors.
• Facility is subject to member’s ability to repay.
• Pricing; 12% profit margin (Contract Terms and Conditions apply).

Documentation required:

• Copy of Identity card and personal identification number.
• Financing agreement application form.
• Master Mudarabah financing agreement.
• Tawarruq offer to sell.
• Tawarruq payment.
• Tawarruq acceptance.
• Letter of offer.
• Proof of income source; employment/business