Conditions

Address of the entity is: Jukiceva 75, Sarajevo, Bosnia and Herzegovina.

Maximum loan amount is up to: 10,000 BAM.

The loan repayment period is 12 months, or 18 months for special categories with the approval of the Loan committee.

The cost of processing the loan (administrative fee) is specified in the loan agreement.

Nominal interest rate: 0%.

First Islamic microfinanance foundation is calculating and expressing the effective interest rate (EIR) in accordance with the Decision of the Federal Banking Agency on unified method of calculation and disclosure of the effective interest rate on loans and deposits (Official Gazette of BiH, No. 48/12 and 23 / 14). The amount of EIR for each loan is specified in the loan agreement and repayment schedule, and shall be delivered to Borrower and co-debtors during the establishment of the credit relationship. EIR is available to the Borrower and co-debtors at all stages prior to the conclusion of the Agreement.

Documentation necessary for loan approval:

1. Loan application
2. Authenticated administrative order provided from the accounting department or from the Federal pension and disability insurance institute
3. Authenticated copy of ID card
4. Copy of „confirmation of residence“ document
5. Pay slip

“First Islamic Microfinance Foundation” approves only personal loans.

Loans (micro loans) are granted in order of priority to the following categories of users:

•  Persons with low income. This includes persons who are sole providers of two or more members of the household, and whose income does not exceed the average salary in the Federation of BH; 
• Above mentioned persons, who require financial resources to start up a business, for household repairs, purchase of medical items and similar social needs;
• low income families with students attending school;
• families with one parent;
• returning refugees;
• displaced persons;
• disabled war veterans;
• demobilized soldiers;
• retirees;
• other categories of citizens, depending on the Foundation's abilities and needs to create new jobs;
• other categories that are eligible to apply for a loan.

The loan file is composed of the following documents: loan application which assess the eligibility of the applicant and the co-applicant, authenticated copy of ID card or/and passport of the applicant and the co-applicant, copy of „confirmation of residence“ document of the applicant and the co-applicant, the original loan agreement with repayment schedule, proof of employment, proof of income (pay check/slip, pension slip etc. or authenticated declaration of other income received), the Loan committee decision of loan approval, authenticated administrative order for the applicant and/or the co-applicant (or for pensioners Administrative order from the Pension Institute); blank bill signed by the applicant and/or the co-applicant, proof of loan payout, original declaration of the applicant regarding early pay off, printed copy from the Central loan registry for the applicant and the co-applicant.

The applicant and co-applicant, agree that "First Islamic Microfinance Foundation" has the right to submit information and personal data, in accordance with the Law on Protection of Personal Data, to the Central Loan Registry, as well as to other institutions which the "First Islamic Microfinance Foundation" has a legal duty to send information to. Applicants/clients are required to inform in writing "First Islamic Microfinance Foundation" of changes to personal and other information, especially change to permanent or temporary residence, on the basis of which the loan was granted. The applicant/client is responsible for all the failures and damage that would occur as a result of failure to inform of change in personal information.

Loans can be granted solely on the basis of a written request for a loan. "First Islamic Microfinance Foundation" in the negotiation stage informs the applicant of all the important loan characteristics, in the form of a standard information sheet, written or electronic form.

By signing the loan agreement, the user of the loan confirms that s/he is familiar with all the loan conditions. When negotiating the loan, the client receives a repayment plan which states the loan amount, the number and amount of the annuity, the annuity due date, repayment period of the loan, and the effective interest rate.

Before granting the loan, the "First Islamic Microfinance Foundation" is obliged to assess the creditworthiness of the loan applicant, based on the data received from the applicant, as well as on the basis of the information from the Central loan database which is done with the consent of the loan applicant. "First Islamic Microfinance Foundation" freely decides about the choice of its customers in accordance with applicable regulations and its internal acts, including having the discretionary power to refuse the signing of the loan agreement.

"First Islamic Microfinance Foundation" before, during or after establishing a business relationship with the applicant, takes all statutory actions and measures to prevent money laundering and financing of terrorism, including actions and measures of identification and monitoring the business of the loan users by obtaining the necessary data and documentation. Identification of the applicant and co-applicant is made exclusively on the basis of valid identity documents issued by the relevant authority.

The pay out of the loan is possible only after mutual signing of the loan agreement. Payout of the loan is done by transferring money directly to the client's bank account.

Loans are secured by the following means:

• Blank bills signed by the borrower and / or co-borrowers;
• Administrative order: signed and sealed by the employer of the borrower and / or co-borrower;
• Administrative ban/order and consent authorized from the Institute of pensions;
• A declaration of consent for the seizure of income, signed by the applicant and/or co-applicant, and verified in a municipality or by a notary.

The borrower can repay in part or in whole the loan, before the agreed maturity date, with the prior obligation to submit a written request for early repayment.

In the event of early repayment of loan, "Microfinance Foundation" is not required to return the amount of loan processing fee as prescribed in Article 2. of the loan agreement, and the borrower is not obliged to pay the early repayment fee.

The consequences of a delay in repayment of the loan are reflected in additional costs, deterioration of credit history, and as last alternative, the "First Islamic Microfinance Foundation" will attempt to collect the debt by activating the collateral. Additional costs of loans that occur if there is a delay in repayment of the loan include the cost of any related court proceedings.

If the borrower or co-borrower believe that the "First Islamic Microfinance Foundation" has failed to comply with obligations arising from the contract, the general business conditions and the provisions of Law, they may file a complaint directly or by sending an e-mail to the address listed on the website of the "First Islamic Microfinance Foundation".

User of the loan, following the signing of the loan agreement, and before pay out of the loan, can withdraw from the loan within 14 days of the signing of the loan agreement. The loan user may waive this right in writing.

In case the borrower does not comply with contractual provisions, this may result in the suspension of the provisions of the contract on the repayment of the loan through monthly installments or the initiation of the repayment of the entire debt at once.