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← Erudite Africa Center of ExcellenceBank and MFIInterest Free Banking ProgramFoundation · Certificate

Interest Free Banking Financing: Foundation

Riba, gharar and maysir, the main IFB contracts, governance and the Sharia'h Advisory Committee, eligibility and Sharia'h screening, key documents and serving IFB customers

Learn why interest free financing works differently from a loan, name the main contracts and when each fits, and screen a customer and a business for Sharia'h compliance, through a week as IFB relationship officer at Bank A's Kezira branch in Dire Dawa.

Start the course

0 of 6 modules completed

What you will be able to do

  • Explain riba, gharar and maysir and why IFB financing must be tied to a real asset, service or venture
  • Describe each main IFB contract in one sentence and match it to a customer need
  • Describe how IFB financing decisions are made and controlled, and the binding role of the Sharia'h Advisory Committee
  • Apply general eligibility rules and Sharia'h screening to a customer and decide eligible, eligible with conditions or not eligible
  • Use the standard Murabaha documents and the key IFB terms correctly
  • Explain IFB products to customers in the right words, with full disclosure and confidentiality
For
All branch and head office staff who meet IFB customers, new hires and support staff in Ethiopian banks with interest free banking windows, branches or full-fledged interest free operations. No prior IFB training is needed.
Study time
About 6 hours online, in 6 modules (2 days in the classroom version)
Each module
Short lessons, animated visuals, Ethiopian examples, decisions to make, NBE rules and worked calculations, then a quiz
Assessment
A 20-question final exam; pass mark 70%
Certificate
Erudite Africa Center of Excellence Certificate
Access
Module 1 free for registered users; the full course, exam and certificate for subscribers

The 6 modules

  1. Module 01Free previewPrinciples of interest free bankingLearn the three prohibitions of riba, gharar and maysir, the rules that replace interest, and why every IFB financing must be tied to a real asset, service or venture.6 lessons · 60 min · quiz
  2. Module 02The main IFB contractsDescribe each sale, lease, partnership and support contract in one sentence and match it to a customer's real need.7 lessons · 70 min · quiz
  3. Module 03Governance, roles and the team approachSee who decides what in IFB financing, from the Board and the Sharia'h Advisory Committee to the branch team, and how complaints are handled.6 lessons · 60 min · quiz
  4. Module 04Eligibility and Sharia'h screeningApply the general eligibility rules, screen the business activity and the finances of a customer, and decide eligible, eligible with conditions or not eligible.5 lessons · 60 min · quiz
  5. Module 05Key terms and documentsLearn the standard Murabaha forms in the order they are signed, and the terms every IFB staff member uses, from rebate and damage to days past due, large exposure and related party.6 lessons · 50 min · quiz
  6. Module 06Serving IFB customersExplain IFB products in the right words, disclose cost, profit and schedule before signing, keep customer information confidential, manage conflicts of interest and escalate complaints and Sharia'h questions.5 lessons · 45 min · quiz
  7. Officer simulationA week as IFB relationship officer at Bank A, Kezira branch, Dire DawaWork as ifb relationship officer: 11 real-life items, decisions with consequences and a hand-over note. Pass with 70% to qualify for the certificate.
  8. Final examFinal exam and certificate20 applied questions across all 6 modules. Pass with 70% to download your certificate.

Practical exercise

Sharia'h screening and contract-matching file for ten customer requests

Using the IFB screening toolkit workbook, build a screening and contract-matching file for the ten customer requests at Bank A's Kezira branch, or for ten real requests from your own branch with names removed: sort everyday transactions by prohibition, screen each customer for general eligibility, business activity and financial ratios, match each request to a contract with a one-line justification, and write a short note to the branch manager.

  1. 1Download ifb-screening-toolkit.xlsx and, on the Transaction sorter sheet, classify the ten sample transactions as permissible or not permissible and name the prohibition in each (riba, gharar, maysir or prohibited activity)
  2. 2On the Screening checklist sheet, complete the general eligibility tests for each of the ten customers: legal capacity, license, TIN, credit history, viability and own contribution
  3. 3For each customer, record the business activity and check it against the prohibited list; for the mixed companies, enter the figures and check the debt and non-permissible income ratios
  4. 4Record each customer's screening decision (eligible, eligible with conditions or not eligible) and any conditions, including the purification amount where one applies
  5. 5On the Contract matcher sheet, answer the three questions (need, state of the asset, when ownership passes) for each request, choose the contract and write a one-line justification a customer would understand
  6. 6Use the Glossary sheet to check that every term in your file is used correctly, then write a one-page note to the branch manager on the three requests that need the most care and why

What you hand in

  • The completed transaction sorter with the prohibition named for each item
  • Screening decisions for all ten customers with ratios, reasons and conditions
  • The contract matcher with a contract and a one-line justification for each request
  • A one-page note to the branch manager on the three requests that need the most care

Templates and tools

  • IFB screening toolkit

    A permissible and prohibited transaction sorter, a customer and business Sharia'h screening checklist with debt and non-permissible income ratios, a contract matcher for ten customer requests and a key terms glossary, filled in for Bank A's Kezira branch.

How to earn the Certificate

  • Complete all six modules and their quizzes
  • Pass the workplace simulation with 70% or more
  • Pass the 20-question final exam with 70% or more
  • Blended and classroom cohorts: submit the practical exercise, assessed by an Erudite facilitator against the deliverables above, and pass the Level 1 written test (30 multiple-choice questions and a 10-term matching exercise) with 70% or more
  • Classroom delivery: attend both training days in full

Built on

  • Erudite Africa Investments course outline: Interest Free Banking Financing, Three-Level Course, Level 1 Foundation (October 2026)
  • A typical Ethiopian bank's interest free banking financing business procedure (May 2025), unnamed: definitions, governance, roles and team approach
  • NBE Directive No. SBB/72/2019, Licensing and Authorization of Interest Free Banking Business
  • NBE Bank Corporate Governance Directive No. SBB/91/2024 (influential shareholder at 2%)
  • AAOIFI Sharia'h Standards, including No. 8 Murabaha, No. 9 Ijarah, No. 10 Salam and No. 11 Istisna'; the host bank's Sharia'h Advisory Committee rulings take precedence

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.