Türkiye Finans Participation Bank finances the needs of its customers by way of contracts as defined under the Islamic jurisprudence.
Contracts used under Islamic Jurisprudence and Their Areas of Use
Murabaha
It refers to cash purchase and deferred sales of goods. Türkiye Finans uses the murabaha contract to perform transactions relating to its Consumer Financing and Credit Card products.
Mudabarah
Mudabarah is a kind of partnership contract where one party contributes capital and the other their labor.
Türkiye Finans performs its transactions relating to Participation Accounts through the mudabarah contract where the customer contributes capital and our bank its labor.
Musharaka
Musharaka is a kind of partnership contract where both parties participate both in the capital and labor.
Türkiye Finans uses the musharaka contract to finance construction and similar projects.
Qard Hassan
Türkiye Finans credit cards provide cash advance through the agreement called Qard Hassan. In this type of borrowing having the characteristics of a loan, inflation differential between the date of borrowing and the date of repayment is collected. Inflation differential is calculated using the latest CPI announced by the Turkish Statistical Institute.
Istisna
This contract model is used for sales arrangements where the product is yet to be manufactured. Istisna contracts are used in housing projects where sales transactions are performed based on scale models.
Tawarruq
Tawarruq is a contract; that goods are purchased on the basis of murabaha, then the goods are turned into cash in a secondary market so that the customer's financial need is met.