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Term  Glossary
1 Accrued Profit Profit earned but not received from the customer.
2 Acquirer Acquirers are banks and financial institutions that collaborate with businesses to accept credit/debit card payments.
3 Additional Unit Purchase Excess purchase of units in Diminishing Musharakah to reduce bank’s share in the asset
4 Advance Booking Booking of vehicle with the manufacturer through advance payment.
5 Advance Rental Payment in the form of rent before the start of the lease term
6 Agency-based contract for investments Relating to Islamic banks, refers to investment contracts where the investment account holders appoint the Islamic bank as agent for investing their funds for a specified fee and share of profit if it exceeds a certain level, the latter being an incentive for the Islamic bank to achieve a return higher than expected.
7 Agreement stamping charges Charges paid by the customer for stamping of financing agreement.
8 Amortization Schedule Information of Equal Monthly Installments (EMI) with breakup of  principal & profit along with balance outstanding.
9 Annual Fee / Renewal Fee An annual fee typically charged to customers for credit/Debit cards.
10 Applicable rate Profit rate applied on the facility.
11 Application form A form to be filled in and signed as per the Bank’s requirements to avail Banking facilities. Requirement of details to be filled in will vary for each facility. Applications may also require certain specified documents also to be attached.
12 Appraisal Agency Agency used for assessing market value of an Asset .
13 Al-‘aqd Legal contract implying an enforceable act involving a bilateral declaration, namely, the offer (’ Ijab) and the acceptance (qabul ).
14 Ard al-waqf Ard al-waqf The land assigned to the welfare of the community either by the Islamic state, corporate bodies or by individuals.
15 ATM An automated teller machine or any card-operated machine or device whether belonging to the Bank or other participating banks or financial institutions or concerns or to the Visa Card or MasterCard global ATM Network, or the affiliated networks thereof, as the case may be, which accepts the Card.
16 Auto financing The financing facilities to purchase the vehicle for personal use.
17 Back-to-back ’istisna‘ (parallel ‘Istisna’) A form of double ’istisna‘ contract, where a company approaches an Islamic financial institution to provide finance for constructing a facility like a power plant. The financial institution agrees to provide the constructed facility on the basis of ’istisna‘. It engages some engineering firm to construct the plant, again on the basis of ’istisna‘. The difference between the price that the financial institution would pay to the engineering firm and the price that it would receive from the original buyer company would be its profit (or loss).
18 Al-bai‘ A contract of sale. Tech: Sale of definite goods or property with the free consent of parties for a definite price. It involves proposal ( Ijab) and acceptance (qubul ). It has many types.
19 Bai‘ al-’amanah A sale whereby both parties express trust in each other. Examples: bai‘ al-wafa, bai‘ al-talji’ah, bai‘ al-wadiyah, murabahah, etc.
20 Al-bai‘ al-batil An agreement of sale which is unlawful in respect of its substance and description.
21 Bai‘ al-dain Sale of debt for cash. For being compatible with the shari‘ah, the sale must be at par value.
22 Bai‘ al-gharar Sale of a thing that one does not have in one’s possession nor does one expect to bring it under one’s control.
23 Bai‘ al-‘Inah A contract of sale where a person sells an article on credit and then buys back at a lesser price for cash.
24 Bai‘ al-’istijrar A form of sale whereby the buyer keeps on taking the goods from the seller as and when needed with or without settling the price and then settles the account later on.
25 Bai‘ al-’istisna‘ A contract of sale whereby the purchaser asks the seller to manufacture a specifically defined product using the seller’s raw materials at a given price to be delivered at a specified place and at specific time.
26 Bai‘ al-kali bil kali A type of credit sales in which on due date, the debtor seeks extension
with the promise to pay something in addition to the original price.
27 Bai‘ al-khiyar Conditional sale. A sales contract that provides an option to the buyer to annul the deal.
28 Al-bai‘ al-mu’ajjal A financing technique adopted by Islamic banks. It is a contract in which the seller allows the buyer to pay the price of a commodity at a future date in lump sum or in instalments.
29 Bai‘ al-muqayadah Selling a commodity for another commodity
30 Bai‘ al-murabahah Sale of goods with an agreed profit  on the cost.
31 Bai‘ al-musawamah Sale of goods at a price on which the buyer and seller agree after haggling without mentioning the cost to the seller.
32 Bai‘ al-salam A sale agreement that involves advance payment for goods that are to be delivered later.
33 Al-bai‘ bil takhir A contract of sale in which the payment has been deferred.
34 Bai‘ al-tawliyah A contract of sale in which the seller agrees to sell a product at his cost.
35 Bai‘ al-wad‘iyah A sales contract in which a seller informs the buyer his actual cost and then gives a further discount on it.
36 Balance Transfer (BTF) Balance transfer of existing finance facility of customers from other banks/DFIs.
37 Balance Transfer Account An account in the name of the customer will be opened for the purposes of the facility.
38 Balloon Payment Payment by customer in addition/additional/excess to the installment amount to reduce the principal outstanding.
39 Banker’s lien Bank’s charge on the asset
40 Bank Investment Ratio (BIR) Ratio of bank’s investment in an asset against the value of that asset
41 Base rate Benchmark rate for driving the pricing of product/service.
42 Billing cycle Date of a month when bill/statement is generated.
43 BOQ Bill of quantity – Break up of amount in construction cases.
45 BRP (bankers ratio of profit-sharing) Percentage share of profit due to financier in the profit of an enterprise financed on the basis of mudarabah or musharakah.
46 Business person Individual having his own business.
47 Buy-back A mode of financing adopted by banks in Pakistan. According to this mode, the bank purchases goods, equipment or property from the client with the agreement that the client would buy it back from the bank at a higher price, to be paid later by the client.
48 Capital contributions Relating to an Islamic Fund, they are additional funds collected from investors in the fund to finance needs that may arise in the future as the fund manager considers appropriate. New shares/units are not issued in exchange of these capital contributions.
49 Capital transactions With reference to an Islamic Fund, they include the sale of units/shares, and the number of units/shares issued on reinvestment of distributions/dividends less the value of units/shares returned.
50 Card The applicable Visa Card, MasterCard and / or any other card including but not limited to co-branded cards, e-card, debit card the second card as issued by the Bank, from time to time, to the Card member and shall include Supplementary and subsequently issued, renewal or replacement Cards.
51 Card Account  Visa/Master Card account or any account pertaining to the Card(s) issued by the Bank from time to time, as the case may be, opened by the Bank for the purpose of entering debits / charges incurred by or for the account of, and credits received by or for the Card member and Supplementary Card member.
52 Card Issuer A bank, financial institution, credit union, or agency that issues a card to public or its members is called a card issuer.
53 Card member A person to whom the Card is issued by the Bank and shall also include every Supplementary Card member.
54 Card Replacement Fee Fees to be charged by the bank for replacement of lost/stolen or damage card
55 Card Transaction  Any payment made or any amount to be debited from the Card Account or any amount charged by the Bank or any Merchant for any goods, services and other benefits by or through the use of the Card.
56 CDs (central deposits) One of the proposed monetary policy tools for the Islamic economy. The central bank may open investment accounts in member banks in which it deposits whatever money it creates and from which it withdraws whatever money it retires. Member banks may invest these deposits in the real sector in accordance with the investment policy of each bank. Profits earned on such deposits may be used to cover the
cost of central bank operations.
57 Certificate of musharakah An Islamic financial instrument approved by the Corporate Law Authority of Pakistan in April 1995.
58 Charges The amount payable by the customer to the Bank under the Terms and Conditions, including but not limited to any transactions, Annual Membership , Services Fee, Charity and other fees / charges.
59 Charity Means monetarily helping those in need. Customer is asked to undertake, that if he/she fails to pay rent on due date, he/she will pay certain amount to a charity, which will be administered through the Islamic Bank.
60 Clean Limit Financing Limit which has been granted by the bank without any collateral/liquid/non-liquid securities.
61 Clear title When the property in question is free from any doubt is not disputed and is not having any encumbrances and it is said to have a clear title.
62 Closing Balance The amount payable (or available) as of last working day of the certain period/month.
63 Co-applicant A co-applicant is a person who signs a finance contract with the primary applicant, pledging to be responsible for paying off financed amount in the event the applicant is unable.
64 Collateral An asset pledged to a financer to guarantee payment. Collateral could include savings, sukuks, takaful policies, jewelry, property or other items that are pledged to pay off financing/rentals/balance outstanding if payments are not made according to the contract.
65 Collector Bank employee responsible for collection/recovery.
66 Commingled mudarabah Relating to Islamic banks, a form of mudarabah in which a bank accepts funds for investment and contributes its own funds as well. The profit  are shared in agreed proportions and the bank also receives a share of the profit from the share of investors for its role as mudarib. However, loss will be shared as per investment ratios up to the principal.
67 Commodity-mudarabah A contract of mudarabah wherein the owner of capital provides capital in the form of stock-in-trade (‘urud) and not cash.
68 Constant musharakah It is a musharakah in which the proportionate shares of partners in the equity remain unchanged within the currency of the agreement.
69 Contract Price Total amount payable by the Customer to the Bank for the Asset pursuant to the Musawamah/Modarabah Transaction
70 Credit History A financial profile of any person based on how he repays his bills, clears his debt and the amount a person owes to various banks and other financial intuitions.
71 Credit Limit It is the maximum amount of money one can draw on his account based on prior sanction or approval from the bank. In other words, drawing limit fixed by a bank for a customer depending on his credit history, paying capacity and relationship with bank.
72 Credit murabahah A sale agreement on the basis of profit over the purchase price of the seller with the condition that the buyer will pay the sale price in future.
73 Credit rating / Score A credit rating is an evaluation of the credit risk of a prospective customer, predicting his ability to pay the financed amount, and an implicit forecast of the likelihood of the customer defaulting
74 Credit risk Credit risk involves the risk that a counter-party to a contractual obligation, be it murabahah, mudarabah, ’ijarah, qard hasan, ’ijarah wa ’iqtina’ or shirkah, would default on the promised date of payment
75 Cross sell Selling of product to already existing customer.
76 Current Customer making all the payments on time.
77 Customer A person who is availing any facility or products of a bank
78 Al-dain al-mu’ajjal Debt prevalent in the pre-Islamic days, with the stipulation for increasing the debt against an extension in the period of repayment
79 Dealership Vehicle is being provided through dealership.
80 Debt Ratio/Debt Burden A ration of amount of money customer owe to banks or credit issuers against total monthly income of a customer. It reflects the percentage of income that goes to paying customer debts every month. Islamic banks calculate Debt Ratio to assess the amount of financing that can be provided.
81 Default/ Delinquency When a customer fails to make any payment(s) due towards the bank as per the terms and conditions agreed or otherwise is termed as default. Furthermore, a breach of contract/terms and conditions may also be categorized as an event of default. Account is classified as delinquent when rentals are not paid according to the contractually agreed upon terms or when due.
82 Delivery Acceptance Form In the context of auto finance, this is a mandatory document which the customer signs acknowledging acceptance and possession of vehicle from the dealer.
83 Desired financing amount Amount required by the customer.
84 Desired financing Tenure Tenure required by the customer.
85 Diminishing Musharakah Bank and customer participate in joint ownership of a property. The share of the bank is divided into number of units. Customer purchase these units from bank at periodic intervals, thereby increasing his/her share in the undivided property until all the units are purchased by the customer.
86 Direct Debit / Auto Debt Facility A facility offers by the bank to customer against which monthly full payment or minimum payment will be debited from his/her account on the due date.
87 Disbursement Payment made in the name of the customer.
88 Discrepancy Incomplete or missing documents, or alternatively incomplete, illegible or contradictory information in the customer’s financing application or documentation provided by customer.
89 Dishonored/Returned Cheque A cheque which is returned by the payer’s Bank due any number of possible reasons including but not limited “insufficient funds, amounts’ mismatch, illegible signature, overwriting, date-barring etc.”
90 Disputed transaction A cardholder posted transaction which is not accepted by him/her and requires clarification.
91 DPD Number of days past the due date after the customer’s payment became due as per the contractually agreed upon terms and conditions.
92 Due Date /Payment Due Date /Installment due date Date specified in the statement of account for monthly payments/ schedule for the payment of the the Current Balance or Installment to be made to the Bank for the facility availed by the customer.
93 E-Alerts Electronic Alerts to be sent to customer via email / SMS.
94 Early Settlement Payment of entire financed amount before the normal maturity of financing as per payment schedule.
95 E-Banking / Internet Banking Banking transactions which can be conducted on internet after accessing Bank’s application with unique password.
96 E-CIB /Credit Bureau Electronic Credit Information Bureau-eCIB has been established by the State Bank of Pakistan which requires all banks and financial institutions to report all financings and advances, to the State Bank.
97 Early Termination Charges If the customer wishes to terminate the Ijarah Agreement before the agreed period, the customer has an option to buy the asset on the pre-agreed purchase price.
98 EMI Equal Monthly Installments.
99 Equity/down payment Customer’s stake in the vehicle, customer pays a vehicle value’s part before financing.
100 Expiry Date The date of expiry specified by the Bank on the Card.
101 External agencies Agencies providing services to customers which are on Bank’s panel.
102 Facility rate / Pricing Profit rate charged on the product/service.
103 Fair price A price that comes into being as a result of the market operations within the framework of the shari‘ah.
104 Fatwa A decree by a competent shari‘ah scholar qualified to issue decrees (mufti) on a matter giving an opinion about the position of a matter in the light of the shari‘ah rules and principles.
105 FCY Foreign Currency Account.
106 FED Federal Excise Duty
107 Financing agreement Document used for agreement between the customer and the bank.
108 Fixed Rate Facilities where the profit rate defined at the time of financing is fixed for the tenure of the facility or until facility is closed.
109 Fixed term This applies to products and services, which have a set lifetime. The customer may be charged if the bank agrees to alter the product or service before the end of its life.
110 Floating Rate Profir rate renewable after certain defined period of time. The profit rate is linked with KIBOR plus a fixed percentage of profit margin.
111 FX Conversion Charges Foreign Currency Transactions charges to be borne by customer to convert into Pakistani Rupees
112 GCAS Global Customer Assistance Service.
113 General takaful A form of Islamic insurance to cover losses of fire, theft or natural calamities. The scheme or concept follows the principles of mutual insurance.
114 Al-gharar Sale of a thing that is not present at hand; or the sale of a thing whose consequence or outcome is not known; or a sale involving risk or hazard in which one does not know whether it will come to be or not, such as a fish in the water or a bird in the air.
115 Guarantee A promise given by a person called ‘the guarantor’ to pay another person’s installment/outstanding balance if that person does not pay them.
116 Hibah Gift
117 Hypothecation Process of placing a charge / lien on vehicle financed by the Bank
118 Ijarah A leasing agreement whereby the bank buys an item and leases it to the customer
over a specific period of time
119 ’Ijarah expense Instalment of rent paid for leasing an asset are shown as ’ijarah expense in the books of the lessee
120 ’Ijarah revenue Instalments of rent received on leased assets by the financial institutions.
121 Al-’ijarah wa al-’iqtina’ A mode of financing adopted by Islamic banks. It is a contract under which the Islamic bank finances equipment, building or other facility for the client against an agreed rental. If Lessor after Ijarah agreement execution unilaterally undertakes to gift the Ijarah asset to lessee after he fully pays the amount of rent as agreed, this arrangement will be called Ijaraha Wa Iqtina.
122 Al-’ijma‘ Consensus of the jurists (mujtahidin) on a certain question in a certain age.
123 Al-’ijtihad  Endeavour of a jurist to derive or formulate a rule of law on the basis of evidence found in the sources.
124 Income estimation agency Agency used for assessing customer’s income.
125 IVR Interactive voice response (IVR) is a technology that allows a computer to interact with humans through the use of voice and DTMF (Dual Tone Multi Frequency ) tones input via keypad.
126 Internal Shariah review An independent division or department or part of internal audit department of an Islamic bank. Its functions include examination and evaluation of the operations of the banks with a view to determine the extent of compliance with the shari‘ah rules, guidelines and fatwas issued by the shari‘ah supervisory board
127 Investment assets With reference to Islamic banks, they are investments in financial instruments using any of the suitable Islamic financial instruments.
128 Investment risk reserve With reference to Islamic banks, it is the amount appropriated out of the income of investment account holders, after allocating the mudarib’s share, in order to provide a cushion against future losses for investment account holders.
129 Islamic banking Banking in consonance with the ethos and value system of Islam as compared to conventional banking that conducts its business of borrowing and lending on the basis of interest.
130 Islamic credit card It is an Islamic alternative to the conventional credit card.
131 ’Istijrar It is an Islamic mode of finance, enabling buyers to buy commodities such as cotton, edible oils, pharmaceuticals, etc. conveniently. The sale price payable to the bank is determined by the market forces. The sale price is taken as the average of market prices, during the financing period relating to the particular commodities determined by reliable and undisputed sources.
132 Al-kafalah A contract of surety in which a person adds to his responsibility or liability on behalf of another person in respect of a demand for something.
133 KIBOR Karachi Interbank Offered Rate as directed by SBP on monthly basis.
134 Lawyer appraisal agency Agency used to verify and appraise the property document.
135 Lease facility A lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset.
136 Leasing certificate leasing certificate is an Islamic financial instrument. The certificate is offered by Islamic banks to savers when the latter want to invest their funds in lease operations.
137 Liabilities Any or all amounts payable whatsoever by the customer to the Bank.
138 Linked Account Account opened for making monthly payments/installments.
139 Litigation charges Charges which will be incurred at the time of filling a suit by the bank against a defaulted customer.
140 LOU Letter of understanding between the bank and the customer mentioning some of the important terms & conditions related to the financed product usage.
141 Manufacturer Vehicle manufacturer.
142 Margin Bank’s Profit percentage
143 Maturity Financing payment completion.
144 Merchant Any person / entity supplying goods and / or services and / or other benefits who accepts the Card  as a means of payment.
145 Money mudarabah A contract of mudarabah in which the capital owner provides capital in cash (‘ain).
146 Month Calendar month.
147 Mortgages Mortgage is the transfer of an interest in specific immovable property for the purpose of securing the payments by the customer
148 Al-mu‘amalah Lease of land or of fruit trees for money or for a share of the crop.
149 Mudarabah certificate A financial instrument devised by Islamic investment companies to mobilize funds for investment. A mudarabah certificate can be for a specific purpose or for a general purpose. The former is related to financing of specific projects and matures only on the completion of the project. The latter can have a specific or indefinite duration but proceeds can be invested in any halal business. Both the types can be issued in negotiable form and can be either registered or bearer.
150 Al-mudarabah al-mutlaqah A contact of mudarabah that does not bind the entrepreneur about the place, time, season, commodities, credit or techniques of trade. These matters are left to the option of the entrepreneur. The mudarabah contract defines merely the profit-sharing ratio.
151 Al-mudarabah al-muqayyadah A contract of mudarabah in which certain conditions like place, season, commodities, credit and techniques of trade are stipulated by the provider of the capital (rabb al-mal ).
152 Mudarabah shares Normally issued by the state, they are instruments for obtaining funds from the private sector on the basis of mudarabah. The state issues a share certificate, indicating the price, the period and the terms of the contract. The funds thus collected are invested in some profit-yielding project so that the state can share profit or loss with the public
153 Al-mudarib In a mudarabah contract, the person who acts as a working partner or entrepreneur. See also sahib al-mal and rabb al-mal.
154 Musawamah Musawamah  is  a  general  kind  of  sale  in  which  price  of  the  commodity  to  be  traded  is bargained between seller and the purchaser without any reference to the price paid or cost incurred by the former.
155 Al-musha‘ Mixing up of the proprietary rights of more than one person in a thing, such as in joint ownership where each co-owner has a right until the entire property is distributed
156 Mustajar Objects of a hiring contract.
157 Mustajir Refers to a lease holder or a tenant in the case of land tenancy. Also used for an employer, in the case of letting out of services.
158 NCCA/ Non Checking Account A type of account where a customer can only make deposits but cannot withdraw funds from the account. As such, no instruments (debit card, cheque book, internet banking etc.) are provided to the customer when opening this type of account
159 NOC No Objection Certificate issued in favor of the customer after financing clearance.
160 Object deferred sale An alternate term for bai‘ al-salam, where money is paid in advance and the goods are delivered later.
161 Off Us ATM Transaction conducted on other bank ATM
162 On Us ATM Transaction conducted on issuer’s bank ATM
163 Operating ’ijarah An operating lease that does not include a promise to transfer the title of the leased asset to the lessee at the end of the lease.
164 Outstanding balance Any unpaid amount with respect to a financing facility
165 Overdue rentals/ Late payments Amount of rentals and which has not been made as of its due date  (or maturity) date. All financial arrangements become overdue one business day after their due date. A customer who is past due may be subject to charity.
166 Parallel salam A type of bai‘ al-salam where a financial institution that has purchased some agricultural commodity enters into a secondary contract with another party to supply the commodity and thus recovers its investment with some profit or loss.
167 Participatory ’istisna‘ A mode of finance that combines features of pure istisna‘a and some features of musharakah.
168 Payment Facility To pay any amount(s) to any person / party for any purpose settlement of any bills or for any other purpose approved by the Bank from time to time.
169 PIN/ ATM PIN The Personal Identification Number issued to a Card member to enable the Card member or a Supplementary Card member or selected by a Card member or a Supplementary Card member and generated through IVR (Interactive Voice Recording) to use the Card at an ATM.
170 Pre Payment/ Early Settlement A one off payment along with FED charges which customer may be asked to make if customer decide to pay off financing facility early before maturity.
171 Prepayment charges Financial charges applied on pre payment of facility.
172 Price and object deferred sale A sales contract where goods and price thereof are deferred. Under the normal rules of the shari‘ah, it is not a lawful contract. But bai‘ al-istisna‘ is one such sale where both the goods and the price are deferred and the Hanafees allow it on the basis that the bai‘ al-’istisna‘a is not a binding agreement.
173 Principal The amount of financing by the bank.
174 Processing Fee One time Fee charged on approved amount only for processing.
175 Profit-sharing deposits Financial instrument of riba-free economy. Indicates deposits with commercial banks on the basis of profit sharing.
176 Progressive Letter The detailed information/events/picture provided by the cardholder for continuing his/her dispute with the bank against disputed transaction evidences
177 Provision With reference to Islamic banks, a provision is essentially a contra-asset in the statement of financial position and is constituted by charges made as expenses to the banks’ income statement.
178 Purchase Order Order issued by the bank to the dealer for confirmation of purchasing the vehicle.
179 Al-qard al-hasan A loan with the stipulation to return the principal sum in the future without any increase.
180 Al-qimar An agreement in which possession of a property is contingent upon the happening of an uncertain event. By implication it applies to those agreements in which there is a definite loss for one party and definite gain for the other without specifying which party will lose and which will gain.
181 Al-qiyas Derivation of the law on the analogy of another law if the basis (‘illah) of the two is the same. It is one of the primary sources of Islamic economics
182 Al-rahn To pledge or lodge a real or corporeal property of material value, in accordance with the law, as security for a debt or pecuniary obligation, so as to to make it possible for the creditor to regain the debt or some portion of the goods or property.
183 Rate revision letter Letter for customer when the applicable rate is revised annually
184 Ready Delivery Vehicle available at the dealer for delivery after payment.
185 Ready Delivery used Used vehicle available at dealer’s end for delivery after payment.
186 Receivables With reference to Islamic banks, receivables are amounts due from clients as a result of sale transactions through the financial instruments of murabahah, salam or ’istisna‘.
187 Registration charges Amount required for registering the vehicle with Excise and Taxation Office.
188 Rental Payment Amount paid by a lessee to a lessor for the use of an asset
190 Reserves a reserve is essentially a component of equity (of either investment account holders and/or shareholders)
and is constituted by appropriations out of income.
191 Restricted investment account Relating to Islamic banking, refers to an investment account in which the bank has the authority to invest the account holder’s funds on the basis of mudarabah contract or agency based contract for investment, but has certain restrictions as to where, how and for what purpose the funds are to be invested. Further, the Islamic bank may be restricted from commingling its own funds with the restricted investment account funds for purposes of investment.
192 Payment period Tenure of the facility.
193 Repossession “Duplication of term” It is suggested to retain any one of the definition.
194 Residual Value Value of the asset after completion of the ijarah period
195 Revolving mudarabah A parallel of credit line in conventional banks, it is a mudarabah facility extended by an Islamic bank with the condition that if the client repays part or whole of the balance outstanding against him, he would be entitled to obtain mudarabah funds to that extent again subject to the overall sanctioned limit.
196 Riba al-duyun A substitute expression for the Qur’anic riba or riba alnasi’ah.
197 Al-riba An increase which in a loan transaction accrues to the lender over time without giving an equivalent counter-value or recompense (‘iwad) in return to the borrower.
198 Riba al-fadl A sale transaction of the ’amwal al-ribawiyah (commodities where the injunction relating to riba is applicable) in which a commodity is exchanged for the same commodity but unequal in amount and the delivery of at least one commodity is postponed. To avoid riba al-fadl, the exchange of commodities from both sides should be equal and instant
199 Riba al-nasi’ah Increment on the principal of a loan payable by the borrower. It refers to the practice of lending money for any length of time on the understanding that the borrower would return to the lender at the end of this period the amount originally lent together with an increment in consideration of the lender having granted him time to pay.
200 Right of Set Off In an event of default or otherwise, bank has the right of set off i.e. bank at its discretion or otherwise and without giving notice to the customer, reserves the right to recover outstanding amount(s) from any of Customer’s Account(s) maintained with the bank.
201 Rupee/PKR Pakistani Rupee Currency.
202 Salaried individual Person employed on a salaried basis.
203 Sale Order Confirmation document sent to the customers before delivering Vehicle.
204 Schedule of Charges The  document prescribing Service Fee(s), charges and other fee(s) applicable to  the Card/ BTF, Card Transactions and / or Card Account, issued by the Bank bi-annually to the Card members.
205 Secured Limit Financing Limit which has been granted by bank and is secured against collateral/liquid/non-liquid securities. In an event of default, or otherwise, bank has the right to recover the amount(s) outstanding against the said security.
206 Security Bank’s security against the financing
207 Self employed professional Individual having his own professional business.
208 Semi commercial Vehicles that can be used for individual consumption and for commercial purpose as well.
209 Service Establishment Merchant acquiring bank who authorize it’s merchant to accept card transaction as per agreement and able to respond disputes queries.
210 Service Fee/ Annualized  Percentage Rate (APR) Fee as determined by the Bank and prescribed in the Schedule of Charges and payable by the customer on the outstanding Liabilities and other amounts.
211 Shari‘ah audit Audit of the operations of an Islamic financial institution to assess the extent to which the institution adhered to the requirements of the shari‘ah.
212 Shariah Board Committee of Islamic scholars in Islamic Banks for guidance and supervision and whose decisions are binding upon the bank
213 Al-shirkah A contract between two or more persons who launch a business or financial enterprise with the purpose of making a profit.
214 Shirkah al-’abdan Partnership between two or more persons in skill, mental or physical labour only (without capital). They accept work jointly, perform it according to their agreement and share the profit. This is also known as shirkah al-san‘ah.
215 Shirkah al-’amwal Partnership where each partner brings in some capital in the form of money and all partners contribute their labour and skill, agreeing to share profit or loss.
216 Shirkah al-‘aqd Two or more persons may continue to carry on business on the condition that capital and profit will be shared among them. This is distinguished from shirkah al-milk, which is partnership in joint property.
217 Shirkah al-milk A proprietary partnership occurs when two persons inherit or purchase something together. Neither of them is permitted to dispose off the other’s portion except with the other’s permission. Each of them is considered a stranger in regard to the other’s portion.
218 Shirkah al-mufawadah A contract of partnership in which all partners are equal in respect of equity, and have right to conduct business for cash or credit. All of them are mutual agents and mutual sureties for one another. They can agree to unequal ratios of profit but the liability to share losses remains equal.
219 Al-shirkah al-mutanaqisah A contract of partnership in an income-generating asset or venture, according to which one partner ends up owning that asset or venture at an agreed time schedule. One form of a ‘diminishing partnership’ is where the bank’s share is sold to the other party at a nominal value utilizing the income generated from the asset itself.
220 SMS Fee SMS – Short Message Service Charges
221 Standing Instructions/ Auto Debit Specific written (and signed) instructions provided by a customer to debit his / her account by a specified amount on a pre-determined frequency. In the context of consumer financing, standing instructions are often requested from customers which have another Non checking account which can be used to service their repayments
222 Statement of Account The Bank’s monthly or other periodic statement of account send to it’s customers showing particulars of the transactions carried out.
223 Suit Legal case filing.
224 Supplementary Card Supplementary card member means the person who is issued a supplementary card with the authorization and consent of the original / basic card member.
225 Supplementary Card member The person who is issued a Supplementary Card.
226 Al-tabarru‘ It means the right of complete and unfettered disposition over joint property. This right has not been conceded by the jurists to any partner. However, one has the right of tabarru‘ with personal property.
227 TPIN The Personal Identification Number issued to the Card member to enable the Card member a Supplementary Card member or selected by a Card member or the Supplementary Card member  and generated through IVR to use the telephone banking facilities made available by the Bank.
228 Takaful Islamic Insurance. A scheme of mutual support that  provides insurance to individuals against hazards of falling into unexpected and dire need.
229 Takaful Contribution The amount pay to Takaful company, as Tabarru‘, to fulfil his obligation of mutual help of his fellow participants who suffers a defined loss.
230 Takaful premium The amount pay to Takaful company, as Tabarru‘, to fulfil his obligation of mutual help of his fellow participants who suffers a defined loss.
231 Takaful Products The products designed to cover the customers liability / assets to any unforeseen circumstances which may face by the customer in future.
232 TAT – Turn Around Time Time required for application processing.
233 Temporary credit A limited period of credit posted by bank into cardholder’s card account for disputed transaction.
234 Tenure The length of time for which a term finance facility has been approved and is typically structured in 12-month multiples.
235 Time barred Transactions A posted transaction  which is disputed after 120 days time-limit or MasterCard/Visa allowable time-limits by cardholder.
236 Title of the property Documents identifying the owner of the property.
237 Title of vehicle Documents identifying the owner of vehicle such as excise file and registration book in Autos.
238 Top – Up Top Up means line replenishment/enhancement.
239 Total Cash Outlay (TCO) An amount including down payment, takaful, processing fee etc. which is paid after Auto finance approval
240 Total Monthly Payment (TMP) Equal monthly amount payable including installment (Principal + profit) and takaful premium amount
241 Trenches Facility disbursed in parts are called trenches.
242 Undertaking Indemnity provided by the customer.
243 Units Undivided portions in an asset
244 Unrestricted investment account Relating to Islamic banking, refers to an investment account where the account holder authorizes the Islamic bank to invest the account holder’s funds on the basis of mudarabah contract in a manner which the Islamic bank deems appropriate without laying down any restrictions as to where, how and for what purpose the funds should be invested.
245 Unsatisfactory Credit History Customer is not making payments against availed cross sell  facility/product  resulting bank has right to close either temporary or permanently said product/facility.
246 US Dollar Currency of the United States of America.
247 Validity Date The validity date specified by the Bank on the Card.
248 Al-wakalah Contract of agency in which a person delegates his business to another and substitutes the other in his own place. The latter is called the wakil, or agent, and the former is called muwakkil, or principal.
249 Al-waqf Appropriation or tying up of a property in perpetuity so that no proprietary rights can be exercised over the corpus but only over the usufruct. The waqf property can neither be sold nor inherited or donated to anyone. Al-awqaf consisted of religious foundations set up for the benefit of the poor.
250 Waqif Relating to the law of waqf, refers to the person who establishes or donates his property by way of waqf.
251 Withdrawal Facility To withdraw cash  either through the Automated Teller Machines (“ATMs”) or through use of a Debit Card held by the Customer (“Debit Card”).
252 Al-zakah (zakat) A tax that is levied on all muslims having wealth above an exemption limit (nisab) at a rate fixed by the shari‘ah to purify wealth and souls from impure love. The object is to take away a part of the wealth of the well-to-do and to distribute it among the poor and the needy.
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