Islamic Flour Mill Finance

Overview

Empowering Flour Mills with Shariah-Compliant Solutions!

Askari Bank’s Islamic Flour Mill Finance is a Shariah-compliant, seasonal financing solution designed to support flour mills across Pakistan. It provides working capital assistance for wheat procurement and related operational needs, offered under Islamic Cash Finance (CF) and Islamic Running Finance (RF) facilities. With flexible repayment options, this product ensures mills can manage their cash flow effectively while maintaining compliance with Islamic principles.

Secure your working capital needs with Askari Islamic Banking today.

Key Features

Purpose

Cash Finance	Running Finance
To meet working capital requirements of flour mill business for procurement of wheat as per milling capacity	To meet working capital requirements i.e. transportation, salary & wages, utility and other administrative expenses etc. (Procurement of wheat through RF funds is restricted)

Max Financing Amount

ME: Upto Rs. 200M (Maximum)*
SE: Upto Rs. 25M (Maximum)*
*RF to be capped at 15% of CF Limit

Markup Rate

3 Month KIBOR + 3% p.a. (Cash Finance)
3 Month KIBOR + 3.5% p.a. (Running Finance)

Processing Fee

@0.15% of total limit(s) processed/approved or Rs. 25,000/- whichever is higher.
Other legal/evaluation charges at actual will also be charged

Tenor (RF & CF)

One year as per clean up corridors

Insurance

Property (building only) and stock insurance to be obtained in favor of AKBL

Security

Cash Finance

Running Finance

Collateral: Pledge of wheat with 10% margin or as per SBP requirement
Additional Security: Minimum 25% of CF limit to be secured through value (MV)of the mortgaged residential/industrial/commercial property (Land & building only), as per AKBL’s credit policy. Remaining available cushion can be used towards other finance facilities.
Cash collateral in shape of DSCs/AKBL Certificates/Lien over Account with 10% margin OR
Other Bank’ term certificates with 20% margin OR
Combination of both property & cash collateral with margins as described above

Collateral: Hypothecation of company’s/mill’s receivables as per AKBL credit policy
Effective mortgage of residential/industrial/commercial property (land & building only) with 25% margin on FSV as per AKBL credit policy OR
Cash collateral in shape of DSCs/AKBL Certificates/lien over account with 10% margin OR
Other Bank’s term certificates with 20% margin OR
Combination of both property & cash collateral with margins as described above

Eligibility Criteria

Age of Applicant:

Minimum 20 years
Maximum 65 years
Age of borrower (in case of sole-proprietorship) must be a minimum 20 years; however, age not to exceed 65 years at the time of application. This age can be relaxed in case of effective succession planning for business operations. This criterion is not applicable if the business concern is a partnership or limited company.

Business Age

Minimum 3 years’ operating history of business.

Account Turnover:

Minimum 50% of the applicant’s sales through account turnover with bank(s). Limit approval will be preferred based on electricity consumption.

Electricity Bills:

The electricity bill payment history should be regular

License for milling:

Valid license from the relevant authority/food authority with a minimum of 8 Roller Body Mill.

Documents Required

Documents required at the time of processing
Application form for SE/ME along with a copy of CNIC.
Copies of company registration documents.
Annual/semi-annual financials (audited or in-house as per SBP requirement).
The electricity bill is evidence of the flour mill being functional.
Copy of security documents for legal opinion, etc.
Legal opinion and evaluation report by the bank’ approved lawyer/evaluators, respectively.
Bank statement.
An undertaking to be obtained from the borrower that the mill operations were not run on a commissioning basis (fully or partially) during the last six months.
An undertaking to be obtained from the borrower that the subject financing will be used only for the intended purposes.
Any other document required as per AKBL’s credit policy.

Processing of Loan

SMEC team at designated branches will process “AFMF” as per the approved Product Program.

How to Apply

To view the instruction guide for Applying SME Financing, please Click Here
To view Frequently Asked Questions related to Askari Imarat Finance, please Click Here

Apply Now

No documents available.