← Interest Free Banking Financing: Practitioner

Collateral

Module 08 / 9 · 55 min

Take acceptable security, value it under maker and checker control, keep it valid through revaluation, replacement and release, and find legal defects before they cost the bank.

In this module you will learn to

List the types of collateral a typical IFB procedure accepts and what each needs
Value a property and a vehicle and review a valuation as checker
Revalue, replace and release collateral under the procedure
Find legal defects in a mortgage file before approval

Built on

Erudite Africa training outline: Interest Free Banking Financing, Three-Level Course, Level 2 Practitioner (October 2026)
A typical Ethiopian bank's IFB financing business procedure (May 2025), unnamed: definitions, governance, roles, modes, products, processing, pricing, collateral and disbursement
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 in that bank
NBE Directive No. SBB/72/2019, Licensing and Authorization of Interest Free Banking Business; Directive No. SBB/91/2024, Bank Corporate Governance; Directive No. NBE/INT/13/2026, Interest Rates (As Amended)
NBE Foreign Exchange Directive No. FXD/01/2024 as amended, including Directive No. FXD/05/2026

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.