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← Interest Free Banking Financing: Practitioner

Pricing, rebate and damage

Module 07 / 9 · 50 min

Price IFB financing within the board-approved profit rates, fees and charges, handle early settlement rebates at the bank's discretion, and send late-payment damage charges to charity.

In this module you will learn to

  • Apply the board-approved profit rates, fees and charges to a financing
  • Calculate the profit and sale price for any term from the annual profit rate
  • Calculate a discretionary rebate on an early-settled Murabaha and explain why it cannot be promised
  • Calculate a late-payment damage charge and show where it goes
  • Explain the price to a customer in correct IFB terms

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.