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  • Offering Shari'a Compliant Microfinance Contracts

    • AU-1.2.3

      Offering Shari'a compliant microfinance contracts is defined as entering into, or making arrangement for an eligible beneficiary to enter into, a contract to provide finance in accordance with Shari'a principles. The maximum amount provided under the microfinance contracts shall not exceed BD 7,000 in aggregate per eligible beneficiary. The repayment period must not exceed 3 years.

      Amended: April 2019
      January 2014

    • AU-1.2.4

      For the purpose of this Section, eligible beneficiary(ies) means: Low income individuals and small businesses, who are not eligible to secure financing facilities through the banking system that intend to get a credit facility to engage in small economic activities (examples: small farmers, fishermen, related activities etc.).

      January 2014

    • AU-1.2.5

      For the purposes of Rule AU-1.2.1, carrying on a regulated microfinance service by way of business means:

      (a) Undertaking the regulated microfinance service of (a) and (b), as defined in Section AU-1.2, for commercial gain;
      (b) Holding oneself out as willing and able to engage in such activities; or
      (c) Regularly soliciting other persons to engage in transactions constituting such activities.
      January 2014