The protocol, signed Dec. 2, is the first collaboration agreement between the participation bank and a development agency. Participation banks adhere to Islamic rules for financing and banking services. Instead of interest-based loans, they offer customers a share in the overall profit of a finance deal.
The signing ceremony was attended by Governor and East Marmara Development Agency board member Ercan Topaca, and Kuveyt Türk Deputy General İrfan Yılmaz.
Speaking at the ceremony Yılmaz said the funding support to be given to SMEs would provide monthly profit shares starting from 0.79 percent and vary depending on a customer’s profile, with up to 48 months installments. He said the amount to be cut as the project commission will be between 0.5 and 1 percent annually, again depending on the customer profile, and it is possible to request a repayment grace period of up to six months.
The amount to be cut as the annual commission for the letters of guarantee to be given to Marka by the bank in favor of the loan-receivers will be 1 percent, according to the press release.
Kuveyt Türk said it would reply to applications for funding in five to 15 days. The profit rates will be valid for 4 months, after which the bank will be able to change the rates according to changing market conditions, the press release said.
The bank will not cut the commissions from Marka’s accounts or the loan receivers. The services offered by the bank as part of the joint funding project also involves abolishing fees for electronic fund transfer, or EFT, and all online services.
Kuveyt Türk will also offer low-cost, long-term Bay-sourced (Bahrain) loans to customers whose applications for funding have been approved.
Kuveyt Turk officials also said in the press release they would consider lending to companies that had applied to Marka but were not granted funding due to an earlier lack of financing.
Source : http://www.hurriyetdailynews.com/n.php?n=participation-bank-to-support-marmara-enterprises-2010-12-09 - Dec 9, 2010
