CMTF-i and MTF-i are Shariah-compliant term financing facilities that provide alternatives to customers to acquire completed or under construction assets such as landed properties (residential and commercial), plant and machinery, vessels and commercial vehicles. CMTF-i can be applied for working capital and for refinancing purposes.

CMTF-i and MTF-I Features:

• Type of Facility: Term Financing
• Shariah Concept : Murabahah (cost-plus sale)
• Underlying Assets
  

  CMTF-i: Tradable Shariah-compliant commodities such as zinc, tin, lead, palm oil and wheat.

  MTF-i: The required assets to be acquired by customer.

• Tenure: As per existing term financing based on customer's requirements and credibility.

Pricing

As per the existing pricing for Islamic Term Financing:

1. Variable Rate Financing

• Selling Price Rate
  BFR + 4% or 10%, whichever is higher (for computation of Bank's selling price)
• Effective Date
  BFR + margin / spread (at per with conventional rate)

2. Fixed Rate

As per the conventional rate. The rate will remain fixed throughout the financing tenor.

3. Combination of both Fixed and Variable Rate

Payment of the Bank’s purchase price (Facility Amount)

1. Bullet or lump-sum payment.
2. Periodically, i.e. monthly, quarterly, half-yearly and yearly.

Payment of the banks Bank’s profit

• Periodically, i.e. monthly, quarterly, half-yearly and yearly, grace profit period maybe allowed for asset under construction.

Disbursement

As per agreed terms between Bank and customer.

Guidelines

The introduction of CMTF-i and MTF-i will operate within the parameter set by Islamic Banking Act (IBA 1983), Exchange CM and other guidelines issued by Bank Negara Malaysia.

Other Terms and Conditions

Other terms and conditions are as per the existing term financing under BBA, Inah and Musharakah Mutanaqisah.

Who Can Apply

Eligible individual or non-individual customers, local and foreign.

For this alternative financing facility, visit your nearest Commercial Business Centre or Trade Finance Centre or Corporate Investment Banking for further information.