Hire Purchase under Shirkatul Melk (HPSM)

This Shari’ah-compliant investment mode combines Shirkatul Melk, Ijarah, and Sale contracts. The Bank and client jointly purchase agricultural equipment or capital assets. The client pays rent for the Bank’s share and gradually acquires full ownership through installment payments.

Key Features

• Joint purchase of tractors, harvesters, irrigation pumps, sprayers, and other agri-machinery or capex items.
• Includes construction/purchase of sheds/buildings for cattle, poultry, fishery, or other income-generating rural activities.
• Targeted at individual farmers, SMEs, and women entrepreneurs. Group financing allowed (5–15 members).
• HPSM agreement required; client may act as Buying Agent.
• Investment size: BDT 1 Lac – 1 Crore; collateral-free up to BDT 3 Lac.
• Profit Rate: As per Bangladesh Bank direction & Bank’s policy.
• Tenure: 12–78 months including grace period.
• Repayment: Monthly/quarterly/half-yearly installments; early payment allowed.
• Security: Hypothecation, personal guarantees, PDCs, insurance (if applicable).

Eligibility

Criteria	Requirements
Nationality	Bangladeshi only
Age	18–55 years (relaxable to 60)
Experience	Minimum 2 years in agri farming
Legitimacy	Must have legal capacity
Delinquency	Not eligible if previously delinquent