A REVIEW OF ISLAMIC BANKING PRODUCTS OFFERED BY AGRO BANK BETWEEN 2008 AND 2012 Dr Muhammad Ridhwan Bin Ab.

Aziz

 Allah says: Is it ye that cause it to grow, or are We the cause Surah al-Waqiah (64)

Objective
The objective of this paper is to explore and compare the Islamic banking products and services offered by the bank between 2008 and 2012 in order to analyze the differences, development and improvement of Islamic banking products and services offered by the bank within the time frame, as the current aims of the bank is to be a full Islamic bank by 2015.

Methodology of Research
The methodology of research in this paper is through document analysis, interviews with relevant Agro Banks officers and observation from pamphlets and website of the bank.

Background of Agro Bank

Agro Bank is an institution which provides financial and banking facilities. Agrobank gives utmost priority to the needs of customers by providing attractive products and services such as saving activities, banking services, loan facilities, insurance coverage and advisory services.

Agro Bank
Commercial Funds

Special Funds

Agro Cash-i, Agro Business

Fund for Food, Paddy Credit Scheme

Products in 2008
1. Fund for Food (3F Loan) 2. Bumiputera Industrial and Business Community Scheme (MPPB) 3. Commercial Agriculture Graduate Entrepreneur Scheme (SUTKS) 4. Youth Farmers Scheme-i

Products in 2012
1. Fund For Food (3F) 3F is a term loan facility provided as a working capital for the investment in food production, processing, warehousing /cold storage room facilities and marketing Eligibility: Individual, Partnership, Company Malaysian-owned company (minimum ownership of 51%) Repayment Period: Maximum 10 years Loan Amount Minimum RM10,000 and maximum RM5.0 million or up to RM10.0 million

2. Agricultural Entrepreneur Loan Fund (DPUP)

A term loan facility specifically for Small Medium Enterprises (SME) involved in agricultural based activities which include production, processing, marketing and biotechnology activity.
Eligibility: Individual, Partnership, Company Malaysian-owned company (minimum ownership of 51%) Repayment Period: Maximum 10 years Loan Amount Minimum RM10,000 and maximum RM5.0 million or up to RM10.0 million Project Eligibility: Subject to fund owner and the prescribed program

3. Skim Belia Tani-i / Skim Belia Niaga (SBT/SBN)

Open to youths carried out activities in agriculture and agro-based industry Eligibility: Age below 40 years Individual/partnership entrepreneurs limited to 2 members only Written recommendation and support from the Youth and Sports Ministry Fixed and working capital Financing Amount: Minimum RM5,000 up to RM50,000 Repayment Period: Maximum 7 years Loan amount: RM5, 000 RM15, 000 (no guarantor) Loan amount RM15, 001 RM50, 000 (guarantor with fixed income of at least RM800 per month) Physical collateral are acceptable by Agrobank

ANALYSIS OF ISLAMIC BANKING PRODUCTS BETWEEN 2008 AND 2012

1. Contract Bay Bithaman Ajil & Bay al-Innah

 2. Product Various products are offered from time to time.

Conclusion
Agro Bank needs to improve: 1. Offer different contracts in fiqh muamalat such as al-Musaqat, al-Muzaraah, Bay alSalam. 2. Products innovation such as developing idle waqf lands in this country.