Islamic Finance Centre successfully disburses finances of Rs 14 million

The recently established Islamic Finance Center has disbursed finances worth Rs 14 million to common people in first two months. The financing was made under Ijarah mode of Islamic financing for purchase of motorcycles and other products. The SECP Chairman Zafar Hijazi had inaugurated the Islamic financing facility center in Rawalpindi December last year. The initiative was taken by the Modaraba sector on the patronage of Chairman SECP for providing Islamic financial products to the masses.
Initially four modarabas, ie Allied Rental Modaraba, First Habib Modaraba, Orix Modaraba and Trust Modaraba has opened their offices in this Islamic finance center. The establishment of Modaraba based Islamic finance center envisioned by the Chairman SECP to promote legal modes of financing and to curb the illegal and unlicensed informal lending practices throughout the country.
The Islamic Finance Center received overwhelming response and common people are approaching the Center to avail Islamic finance for purchase of motorcycles to cater their conveyance needs. The Modarabas in this center are providing microfinance to the customers at cheaper rate ranging in between 20 to 25 percent, as against the prevalent market rates of 40 to 45 percent.
The SECP has shown its firm commitment to provide all the support to other Modarabas, which have plans to open similar Centers in other parts of the country for the benefits of the common people. This will increase the outreach of Modarabas to the smaller cities and towns for greater financial inclusion of the underserved sectors.-PR