Thursday, 19 September 2019, 19 Muharam 1441H Solat Time:

Revolving Credit-i (RC-i)

1.0 Introduction
Bank Islam Revolving Credit-i (Tawarruq) is designed to finance working capital needs of business customers such as corporate and commercial. The financing is offered with a revolving feature that allows business customers to use the finances when they are needed as working capital (subject to the availability of financing limits).
2.0 Shariah Concept
3.0 Product Mechanism
a)The customer is required to issue an utilisation notice to the Bank when it is in need of working capital.
b)Subject to the availability of financing limits, the Bank will provide the working capital after Tawarruq transaction has been made with the customer according to the requested amount based on the utilisation notice.
c)The customer is required to make a settlement of the Bank’s Sale Price (Principal + Profit) on its maturity date.
4.0 Benefits
a)Flexibility in utilisation of funds when required
b)Competitive pricing and margin of financing
c)Globally accepted Shariah concept
5.0 Product Pricing
Profit rate (all in rate)
a)Cost of Fund (COF) + Spread
b)Base Financing Rate (BFR) + Spread
Spread is determined based on credit standing of the Customer during application of facility.
6.0 Fees and Charges
a)Agency Fee for Tawarruq Transaction
(i)RM25.00 – Appointment of the Bank as Purchase Agent (ABPA)
(ii)RM25.00 – Appointment of the Bank as Sale Agent (ABSA)


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