ADF’s Islamic finance, which is certified and supervised by its Sharia Advisory Board, ensures that all transactions are based on Sharia Principles; are transparent; and are free of riba, gharar, maysir, unfair advantage, and cannot be used for any haram activities or assets.
Presently, ADF Islamic lending products include:
Murabaha: An asset in a trade transaction, including import/export.
Salam: pre-harvest financing
Ijara wa Iqtina: financial lease for agricultural equipment
Wakala: For working capital
Estisna: purchase of equipment or machinery not yet manufactured, and agricultural related construction
Zahra: a sharia compliant lending product offered by financial intermediary partners to existing female led agribusinesses.
ADF also offers a Bano loan product to woman owned agribusinesses, designed to improve access to credit for women entrepreneurs who typically operate smaller sized agribusinesses. The product features allow for longer maturities at lower interest rates.