Islamic Finance

The Al Salamah Islamic Finance Unit, carrying out activities independent of LB Finance PLC, offers a range of financial services including fixed and flexed investment accounts, trade financing and leasing. We provide you total security along with an absolute peace of mind.

Products

Ijarah Logo

The Ijarah scheme is unique, and specially designed and tailor-made to address all your leasing needs. We’ll purchase the motor vehicle for you in keeping with your choice and style and let you use it over a mutually agreed lease period and gift it at the end of it, provided all your commitments have been met on time. What’s more; we will comprehensively insure it, bear the cost of all major repairs, leaving you only the small hassle of routine maintenance. This way, we take a major part of your risk away, giving you the freedom to enjoy the benefits of our Ijarah.

Murabaha Logo

The Murabaha principal is used by most Islamic Banks and Financial Institutions worldwide as a convenient mode of finance for most types of asset-based financing: vehicle/machinery financing, trade finance, import and export etc.
In a Murabaha transaction, the seller and the buyer reach an agreement to trade a specific commodity with a certain profit added to the cost. It is compulsory on the seller to disclose the actual cost of the commodity and his/her profit mark-up, which can be a specific amount or a percentage of the cost. Both parties should reach an agreement on this matter beforehand.

Deferred settlement, either as a lump-sum full payment or in monthly instalments, is also allowed in Murabaha financing.

Mudharabah Logo

Mudharabah is a common equity-based Islamic mode of investment where profits are shared among investors on a pre-determined ratio. The parties involved are referred to as the Rabbul Mal (The Financial Provider) and the Mudharib (Fund Manager).
In a Mudharabah partnership, the Mudharib (Al Salamah) manages and prudently invests the Mudharabah Fund which consist investments collected from a pool of Arbaabul Mal (investors). The Rabbul Mal is rewarded for his/her risk and the Mudharib for their entrepreneurship.
In a rare and unlikely event of a loss, unless it is resulted from the negligence of the Mudharib, the entire loss will be absorbed by the Mudharabah Fund prior to the distribution of any profits.

The Sharia Supervisory Council will strictly monitor the investments from the Mudharabah Fund to ensure total sharia compliance.

LB-Islamic-Wakala Logo

with the Introduction of “WAKALA” investment deposits from Al-Salamah now you have an opportunity to earn high returns on your investments with peace of mind.
for companies and individuals who expect a periodic, stable income coupled with steady capital appreciation, our Wakala Investment deposit provides the ideal platform and opportunity. This unique deposit scheme offers different maturities structured to allow investors to benefit from a constant and steady source of income. The Full Invested amount will be paid at maturity and profit could either be drawn monthly or along with capital at maturity.

‘Al-Salamah’s Wakala Investment is based on the Islamic Concept of “Wakala bil Isthimar”under this concept, you become the Principal (Muwakkil) and the financial institution (Al-Salamah) become the Investment Agent (Wakeel) of your funds.

Al-Salamah invests these funds in Sharia’s compliant financing and investment activities. The targeted profit earned from such investments are distributed to the customers monthly or upon maturity of the account.Al-Salamah (as Wakeel) deducts it’s agreed Agency fee (Wakeel fee) and pays the targeted profit amount along with the principal funds to the customers as per the terms of Wakala Agreement at maturity.

  • A MINIMUM DEPOSIT OF LKR1,000,000
  • COMPETITIVE PROFIT RATE, EARN HIGH RETURNS ON YOUR INVESTMENTS WITH PEACE OF MIND.
  • FLEXIBLE DEPOSIT TERMS RANGING FROM 1,3,6,12,15,18,24,36,48 AND 60 MONTHS.
  • MARKET COMPETITIVE PROFITS ARE PAID MONTHLY OR AT MATURITY DATE OF EACH DEPOSIT.

For more information give us Call:0772 763 249 or 011 2200 311.

Mudharabah Profit Sharing Ratios (PSR) for January 2018

Period

PSR (Customer/LBF)

Mudharabah 01 Month Fixed Deposit – Profit Paid at Maturity 26:74
Mudharabah 03 Months Fixed Deposit – Profit Paid at Maturity 28:72
Mudharabah 06 Months Fixed Deposit – Profit Paid at Maturity 28:72
Mudharabah 06 Months Fixed Deposit – Profit Paid Monthly 30:70
Mudharabah 12 Months Fixed Deposit – Profit Paid at Maturity 29:71
Mudharabah 12 Months Fixed Deposit – Profit Paid Monthly 31:69
Mudharabah Savings Account 28:72

 

Mudharabah Investments – Previously Paid Profit Rates

01 Month (Maturity) Fixed Deposit 03 Months (Maturity) Fixed Deposit 06 Months (Maturity) Fixed Deposit 06 Months (Monthly) Fixed Deposit 12 Months (Maturity) Fixed Deposit 12Months (Monthly) Fixed Deposit Savings Account
February
2016
5.48% 6.01% 6.53% 5.48% 9.66% 8.62% 6.01%
March 2016 6.93% 7.46% 8.52% 6.93% 9.59% 8.52% 6.08%
April 2016 7.04% 7.50% 8.44% 7.04% 9.38% 8.44% 6.12%
May 2016 7.60% 8.62% 9.63% 7.60% 10.65% 9.63% 7.08%
June 2016 7.45% 8.45% 9.44% 7.45% 10.43% 9.44% 7.45%
July 2106 8.05% 9.12% 10.20% 9.12% 11.27% 10.20% 8.03%
August 2016 8.86% 9.40% 10.48% 8.86% 11.01% 9.94% 7.52%
September 2016 9.05% 9.83% 10.60% 9.05% 11.12% 10.08% 7.76%
October 2016 9.07% 9.85% 10.63% 9.07% 11.14% 10.11% 7.74%
November 2016 10.03% 10.56% 11.62% 10.03% 12.14% 11.09% 7.64%
December 2016 9.99% 10.51% 11.56% 9.99% 12.09% 11.04% 7.60%
January 2017 10.01% 10.56% 11.67% 10.01% 12.23% 11.12% 7.50%
February 2017 10.01% 10.60% 11.78% 10.01% 12.37% 11.19% 7.36%
March 2017 9.90% 10.49% 10.49% 11.65% 11.07% 12.24% 7.25%
April 2017 10.12% 10.56% 10.56% 11.43% 10.99% 11.65% 5.64%
May 2017 9.82% 10.52% 10.52% 11.57% 10.87% 11.92% 7.36%
June 2017 9.85% 10.55% 10.55% 11.61% 10.91% 11.96% 7.39%
July 2017 10.08% 10.46% 10.46% 11.24% 10.85% 11.63% 7.36%
August 2017 10.14% 10.53% 10.53% 11.31% 10.92% 11.70% 7.34%
September 2017 9.99% 10.38% 10.38% 11.15% 10.76% 11.53% 7.30%
October 2017 9.09% 9.44% 9.44% 10.14% 9.79% 10.49% 6.62%
November 2017 9.87% 10.57% 10.57% 11.28% 10.93% 11.63% 7.71%
December 2017 9.76% 10.46% 10.46% 11.15% 10.80% 11.50% 7.67%
Phone: 011 2200311
Fax: 0112 508658
In-house Sharia Advisor: 077 33 77 819
Email: [email protected]