Islamic finance - People's Leasing & Finance PLC


People's Leasing & Finance PLC is a leading provider of Islamic Finance (IF) services in Sri Lanka. The Company has dedicated branches to offer IF services to prospective clients. At present People's Leasing & Finance is the market leader in if services in the finance company sector in the country. The customer segment of IF services range from corporate, SME to high net worth individuals and professionals who are mainly functioning in trading, transportation, agriculture and services sectors in the economy. People's Leasing & Finance offers the following range of Islamic finance products.

 

  • Murabahah

 

Murabahah is a Sharia compliant product that provides short to medium term financing for working capital requirements and for purchase of goods/assets. The IF service provider purchases goods/assets at the customer's request and sells them at a sale price on deferred payment basis. The service provider will inform the customer regarding the cost breakdown and the profit in the sale price. Apart from financing normal working capital requirements, this is a popular mode of financing the acquisition of registered vehicles in Sri Lanka.

 

 

  • Mudharabah

 

Mudharabah is a contract of partnership between the investor (principal or the depositor) and the IF service provider who acts as a fund manager of the investor to invest money in a fashion deemed suitable by the manager and the profit gained from the investment is shared according to a pre-determined profit sharing ratio.

 

 

  • Diminishing Musharakah

 

Diminishing Musharakah is a contract of partnership between the client and the IF service provider which facilitates real estate financing. According to this concept, the IF service provider and the client jointly participate in acquiring the real estate where the ownership of the real estate is explicitly shared between them. As indicated by the name, the ownership of the IF service provider diminishes over time as the client purchases a share with each monthly payment. The periodic payment of the client can be divided in to two parts. One being the rental to the IF service provider for using his share in the real estate whilst other being the equity contribution to buy out the IF service provider's share of the real estate. The contract will last till the client purchases the whole share of the IF service provider's share and acquires complete ownership of the real estate.

 

 

  • Ijarah (Lease)

 

Ijarah is a product which allows the IF service provider to purchase an item on behalf of a customer, who then leases the item from the service provider over a specific period by paying a rental. The ownership of the item remains with the service provider throughout the period of the lease, while the customer has the right to use the item. Upon the satisfactory payment of the contract, the ownership of the item is transferred to the customer. This is similar to finance leasing facilities extended by SLCs and is fast growing as a popular mode through which the Muslim community acquires new vehicles and equipment for their business purposes.

 

 

Islamic Savings and Fixed Investment Accounts


Al Safa - Islamic Financial Services offers a diverse range of Shariah-compliant Investments / deposit products through its branches in Sri Lanka. All products are approved by the Shariah Supervisory Board.

  • Al-Safa Mudharabah Savings Account

 

This is a savings account that works on the basis of 'Mudharabah ' The minimum investment required for opening an account is Rs.1,000. There is no restriction on withdrawals and or numbers of transactions and there is no deduction of service charges if the balance maintained is low. Globally accepted VISA Debit Card, SMS Alert service on every debit transactions. The account holder is permitted to withdraw Rs.100,000/= per day.

 

 

  • Usfoor Minor Savings Account

 

This is unique savings account for minors that offer a reasonably good return. The profit is calculated monthly and credited into the account. The minimum investment required is Rs.500/= The money can be withdrawn by the parent or the legal guardian for education and hospitalization purpose. If the minor attains the age of maturity the account will be converted to as normal Mudharabah Savings Account.

 

 

  • Corporate Savings Plus Account

 

This Savings account specially designed for corporate customers with several unique features that make it very suitable for customer to park their surplus funds that offer a higher expected profit. Profit is calculated on daily average investment balance and credited to the account on monthly basis. The minimum investment amount is Rs.100,000/= and the minimum balance to be maintained at Rs.5,000/=. Withdrawal is unrestricted but large amount requires prior notice.

 

 

  • Hajj Saving Account

 

This is savings deposit for individuals who wish to save for their spouse, children, parents or other family members for performing Hajj on a future date. It is a recurring deposit account, where the customer deposits monthly contribution as per a schedule. The minimum investment required for opening an account is Rs. 5,000/= Profit is calculated on daily investment balance and credited into the account on a monthly basis. Apart from regular monthly contribution, the customer can also deposit additional amounts as per their convenience in order to complete the targeted deposit amount and make the desired journey earlier than initially planned. After accumulation of the desired deposit amount the customer can avail any one of the packages offered by authorized travel agents through Al-Safa or utilize the funds for alternate purposes.

 

 

  • 12 months Mudharabah Investment Account – profit at maturity

 

The 12 Monthly Mudarabah Certificate is a medium -term deposit product for an investment period of one year only. Profit is paid on maturity with re-investment option available on a continuous basis. Minimum investment required is Rs. 100,000. Pre-mature withdrawal can be made with prior notice. Profit is calculated with a higher profit share ratio of 75% to investors /depositors

 

 

  • 12 months Mudharabah Investment Account – profit at monthly
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    The 12 Monthlys Mudarabah Certificate is a medium -term deposit product for an investment period of one year only. Profit is paid on monthly with re-investment option available on a continuous basis. It is ideal for those individuals and corporate that needs a regular stream of monthly income. Minimum investment required is Rs. 100,000 for regular customers, while for widows and senior citizens the minimum investment is Rs.50,000. Pre-mature withdrawal can be made with prior notice. Profit share ratio of 65% to investors /depositors

     

     

  • Short Term Mudharabah Investments Account
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    This is term deposit certificates for investment periods ranging from 3 months to 6 months profit payment on maturity. Minimum investment required is Rs.50, 000 and there is no limit on maximum investment. Pre-mature withdrawal can be made with prior notice. Profit share ratio differs on the basis of investment period.