← Interest Free Banking Financing: Foundation

The main IFB contracts

Module 02 / 6 · 70 min

Describe each sale, lease, partnership and support contract in one sentence and match it to a customer's real need.

In this module you will learn to

Describe Murabaha, Bai' Salam, Istisna', Tijarah and Tawarruq and the need each serves
Explain Ijarah, including a lease that ends in ownership
Distinguish Musharakah, Diminishing Musharakah and Mudarabah
Explain the support contracts: Wakalah, Kafalah, Qard al-Hassan and Wadia'h
Match a customer request to the right contract and justify the choice

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.