Islamic Rice Finance

Overview

Seasonal Support for Sustainable Growth!

Askari Bank’s Islamic Rice Finance is a Shariah-compliant seasonal financing solution tailored for rice mills. Designed to support paddy procurement and operational expenses, the facility is structured around the mill’s capacity and track record. This product empowers rice mills to manage working capital efficiently and strengthen their role within the SME sector.

Grow your business potential with Askari Islamic Banking today.

Key Features

Category	Cash Finance (CF)	Running Finance (RF)
Purpose	To meet the working capital requirements of Rice Husking Mills for the procurement of paddy as per milling capacity.	To meet working capital requirements of Rice Husking Mills, i.e. transportation, salary & wages, utility and other administrative expenses, etc.
Max. Financing Amount (RF & CF)	ME: Up to Rs. 200M (Maximum) SE: Up to Rs. 25M (Maximum)
Markup Rate	3 Months KIBOR + Up to 3.00% p.a	3 Months KIBOR + Up to 3.50% p.a
Processing Fee	Processing fee @0.15% of total limit(s) processed/approved or Rs. 25,000/- (whichever is higher). Other legal/evaluation/documentation/service charges at actual will also be charged.
Tenor	Max 270 Days or Clean-up corridors (whichever is earlier)	One Year
Insurance	Property (building only) and stock insurance in favour of AKBL

Eligibility Criteria

Age of Applicant

Minimum 20 years (in case of sole proprietorship)
Maximum 65 years at the time of application
This criteria is not applicable if the business concern is a partnership or limited company
This age can be relaxed in case of effective succession planning is available.

Business Age

Minimum 3 years operating history of business

Account Turnover

Min 50% of the applicant’s sales to be documented through account turnover with bank(s).

Electricity Bill

The electricity bill payment history should be regular

Security/Collateral

Cash Finance	Running Finance
CF limit fully secured against pledge of paddy/rice with a 25% margin or as per SBP requirement.	Hypothecation of the company’s/mill’s receivable as per the bank policy
Additional Security: Minimum 25% of the CF limit to be secured through the Market Value (MV) of the mortgaged Residential / Industrial / Commercial Property (Land & Building only)	Effective Mortgage of Residential / Industrial / Commercial property (Land & Building only) with 25% margin on FSV and third-party property, 30% margin over FSV as per bank policy
Cash collateral in the shape of DSCs/AKBL Certificates/lien over the account with a 10% margin	Cash collateral in the shape of DSCs/AKBL certificates/lien over the account with a 10% margin
Other bank Term Certificates with 20% Margin	Other bank certificates with a 20% margin
Combination of both property & cash collateral with margins as described above.	Combination of both property & cash collateral with margins as described above.
Personal Guarantees of Borrower/Partners/Directors of the Company	Personal Guarantees of Borrower/ Partners/Directors of the Company
In addition to the above collateral, any other security deemed necessary, as per bank policy	In addition to the above collateral, any other security deemed necessary, as per bank policy

Documents

Documents Required to apply for Askari Rice Finance

Documents required at the time of processing

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

Processing of loan

SME team at designated branches will process “ARF” as per 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 Rice Finance, please Click Here

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No documents available.