This facility involves disbursement of funds in the following areas:

Lease
Leasing, in essence, is an agreement between two parties for the rental of an asset. IIBL is providing leasing facilities for various assets ranging from machinery and equipment to vehicles for all type of borrowers meeting their business needs.

Morabaha
Short term working capital facility under Islamic mode of financing which is sale based on cost plus profit. In this the seller (the bank) declares to the buyer (the customer) that he is making some profit over his cost of acquisition, and buyer knowing this fact agrees to enter into a purchase agreement on a mutually agreed price. This helps fulfill the customers’ short term working capital needs and helping them to keep control over the increase in price of goods.

Bill and Pro-Note Discounting
Bill of exchange is a negotiable instrument, in writing, containing an unconditional order, signed by the maker, directing a certain person to pay certain sum of money only, or to the order of a certain person. Bill of exchange is a written acknowledgement of the debt.

Pro-note discounting means discounting of a promissory note which contains a promise of payment by the debtor himself after the expiry of some specified period without the involvement of third party. The bank offers loan facility on the strength of the promissory note along with some additional tangible collateral.

Term Finance
Project finance is the financing of long-term infrastructure, industrial projects and public services based upon a financial structure where project debt and equity are used to finance the project. Debt is repaid using the cash flow generated by operation of the project and is said to be non-recourse.

Loan Syndication  / Arrangement
Loan syndication is a process involving several different lenders in providing various portions of a loan. It is basically a consortium/ syndicate of Financial Institutions formed to cater to the customer need. IIBL also provides Financial Advisory Services including arranging syndicate loans for its valuable customers against Fees / Service Charge.

Margin Finance
It is a loan provided to partly finance investment by the customer in marketable securities which are held by the bank as collateral. The amount invested by the customer is the margin against the loan.