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