Tas'heel Product
 
Product’s Purposes:

    *      Education

    *      Medical treatment

    *      Marriage

    *      Debt repayment to finance institutions and individuals

    *      Building materials

    *      Non-manufactured items such as furniture, windows, doors, kitchen furniture etc…

    *      Others: Any other benefit that the Bank cannot purchase by way of Morabaha such as travel for the pilgrimage and Umra, medical treatment, education, marriage, payment of the costs of architectural designs of homes or properties etc…

Maximum Finance Term:

    *      7 years for Bahrainis.

    *      5 years for non-Bahrainis.
        
Minimum Finance Amount:

    *      BD1,000

Maximum Finance Amount:

    *      BD100,000 for Bahrainis

    *      For non-Bahrainis – 90% of the amount of end of service dues with a maximum of BD20,000.

How to Apply:

   1.      A customer must file an application with the Bank to obtain finance for the following purposes:
        # Education
        # Medical treatment
        # Marriage
        # Debt repayment
        # Building materials
        # Non-manufactured items such as furniture, kitchen furniture etc
       
   2.      Once the Bank approves the customer’s application, the Bank buys the item or commodity from the local market from Trader No.(1).
       
   3.      When the Bank owns the commodity or item, he sells it to the customer by way of Morabaha and all the contracts and documents are signed.
       
   4.      The Bank will then deliver to the customer the item’s ownership certificate to enable him to take delivery of the item from the Trader or by a power of attorney given to an organization to sell the same on his behalf to Trader No.(2).
       
   5.      following the sale of the commodity to Trade No.(2), the Trader will give a payment order to the Bank for debiting the value of the purchased item from the customer and its value will be credited to his account with the Bank.
        
Applicable Terms and Conditions:
Percentage to be Deducted from the Salary or Regular Income:

    *      Up to BD3,000: 50% of the total salary.
    *      More than BD3,000: 65% of the total salary or as determined in the sole discretion of the Credit Committee.
        
Period of Employment and Minimum Salary:

    *      A minimum of 4 months in regular employment.
    *      A monthly net salary of no less than BD200.

Customer’s Age:
A customer should not be less than 21 years of age and not more than 60 years upon the repayment of the final instalment.
 
Salary Transfer:
It is compulsory (according to the list of employers approved by the Bank) or an irrevocable standing order for the employees of other banks.

Takaful Insurance (In case of death):
The monthly instalment includes the Takaful insurance (life insurance) premium which is computed by a certain percentage for the period and amount of the required finance.

Rate of Profit:
Bahraini employees: Up to 3 years 5% - 3 years or more 5.5%.
Non-Bahraini employees: Up to 5 = 5.5%.
 
Administration Fees:
BD60 to be paid once only.
 
Difference between Ordinary Securitisation and Tasheel Product

  

Ordinary Securitisation	Tasheel Product
1.  Bank is the financier, agent and arranger of the transaction and provides the traders.	1.   The Bank buys the commodity, owns and sells it to the customer by Morabaha after which the Bank’s role comes to an end.
2.   The product is not local and is usually metals or international commodities in the London and other markets through specialized brokers involved in this business.	2.    The item is local and the traders are also local and there is no relationship between the Bank and the traders.
3. Possibility of delivering the commodity is difficult or impossible.	3.  This product provides the advantage of delivering the item to the customer or his request to sell it to get cash liquidity.
4.    A customer plays no role in selling the commodity and des not even know the nature of the commodity. This makes securitisation different from Islamic securitization and a confirmation that this transaction is called banking securitization.	4.     A customer has the total freedom to take delivery of the commodity and sell it personally or by giving a power of attorney to a trading organization to sell it on his behalf to another trader.
5.     The commodity is usually returned to the Trader No.1, hence the item gets recycled.	5.   The commodity is not returned to Trader No.1, hence it is not recycled to the Bank.
6. The transaction is implemented on the basis that the bank basically owns the commodity or the bank requests to buy it first. If it owns such commodity, it sells it on a deferred basis to the customer and the bank is given a power of attorney to sell it once again to get cash funds.	6.  The Bank does not realize the commodity but the Bank’s role ends upon signing the Morabaha Sale Agreement with the customer.
	7.    A trader who buys the commodity from a selling organization on behalf of the customer is the one who pays to the customer for his account the value of the commodity by debiting the amount to the trader’s account and crediting the same to the customer’s account.
	8.    All the transactions conducted by the Bank for Tasheel product are subject to Sharia’a verification in the Bank to ensure the validity of procedures and documents from the Sharia’a point of view and compliance with the decisions of the Sharia’a Supervisory Board.
	9.     This product is characterized by the Sharia’a verification and supervision by a Compliance Organisation that undertakes the verification process to ensure that there are no Sharia’a drawbacks. The Sharia’a Board will issue regular reports about such transactions and their implementation.