HISTORY

Brief History

ICFAL was formed in 1998 by a group of highly motivated volunteers and is one of the leading Islamic Finance provider operating in NSW, ACT, Western Australia, Queensland, Victoria and South Australia providing Shariah-compliant finance for housing, vehicle and community infrastructure.

It now has 3000 plus members with 33.6 million Member Share Fund with $5.11 gross revenue per $100 Share worth a $4 distributable net profit per share.

 ICFAL has its offices in Parramatta, Western Sydney and now employs five staff members in order to operate as a professional finance organization complying with Islamic financial guidelines within the stringent Australian regulations and laws pertaining to financial institutions.

The idea of ICFAL was catalysed when one of the foremost authority on Islamic finance Mufti Muhammad Taqi Usmani visited Australia during the late nineties and exhorted the Muslim community to initial Shariah-compliant financial institutions in order to avoid usury/interest. This ICFAL was formed in 1998.

ICFAL offers line of products, which include General Membership, Children’s Education Fund, Superannuation Fund, Hajj Fund, Burial Expense Fund as well as finance products like property finance, car finance and Qard Hasan.

All products of ICFAL have been designed to strictly follow Islamic Shariah law and supervised by a Shariah Advisor. All products have been described separately in this document.

ICFAL has celebrated 20 years of successful operation in Sydney on 20th March 2018, which was the result of extreme hard work and dedication by its founder members, professionalism in day to day activities, maintaining trust among the members by offering 100% halal products in the simplest way for members to understand as well as allocation of fund for donation to social activities for example building mosque, Islamic institutes, schools etc.

ICFAL IS:

  • 100% Member Funded
  • Islamic Shari’ah Compliant
  • Supervised by renowned Islamic Scholar

ICFAL does not invest in the following sectors:

ICFAL does not invest in companies, which are directly active in, or derive more than 5% of their revenue (cumulatively) from the activities as follows (“prohibited activities”):

Alcohol: distillers, vintners and producers of alcoholic beverages, including producers of beer and malt liquors,
owners and operators of bars and pubs.

Tobacco: cigarettes and other tobacco products manufacturers and retailers.

Pork and pork related products: companies involved in the manufacture and retail of pork products.

Interest (Riba) based activities: Commercial banks involved in retail banking, corporate lending, investment banking; companies involved in mortgage and mortgage related services; providers of financial services, including insurance; credit agencies; consumer finance, credit cards, lease financing; brokerage services, securities lending; and insurance and reinsurance firms.

Defense/Weapons: manufacturers of military aerospace and defense equipment (??)

Gambling: owners and operators of casinos and gaming facilities, lottery and betting services.

Adult Entertainment: owners and operators of adult entertainment products and activities.

ICFAL does not allow investment in the following activities:

Islamic Shariah investment principles do not allow investment in companies deriving income from interest or companies with large income portfolio based on interest earning. Any company or individual involved with such companies for business activities generating significant income deem non-compliant and strongly advised against it.

ICFAL does not allow portfolio build-up based on interest at any ratio

In ICFAL we believe interest (Riba) is forbidden in any form and there is no way of purification once earned and included in the asset holding and income portfolio. Therefore, we do not allow any interest-bearing fund in the form of any investment or finance to be part of our portfolio regardless of ratio. We believe in simplicity and peaceful investment and finance, which is not binding by any complex structure, which may elude members and create confusion among them. ICFAL operates based on member investment only and extends secured finances from the funds available rather than borrowing interest bearing fund from conventional commercial banks.

Our Shariah Compliant Investment Products – ICFAL at a Glance

Invest in Peace

  •  100% member funded
  •  Secured Investments
  •  No interest paid/received to/from banks
  •  No interest paid/received to/from members
  •  Fairness and equality for the benefit of members

 Membership Eligibility

  •  Temporary or Permanent Resident or Citizen of Australia, Work permit holder, students
  •  Living in NSW, VIC, Queensland, ACT, SA or WA
  •  18 years of age or older

Community Projects

  • Parramatta Mosque, NSW
  • Lakemba Islamic Centre, NSW
  • Campbelltown Youth Centre, NSW
  • Islamic Practice Dawah Circle, St Marys, NSW
  • Tamworth Crescent Community Mosque, NSW
  • Horsham Islamic Welfare Association (HIWA), VIC
  • Melbourne Madinah, VIC

Investment Products

 Features & Eligibility
Member Account
  • General Membership Fund
  • Annual Dividend paid on account balance
  • Purchase of Minimum 5 shares for active membership
  • 30-day notice to redeem more than 50 shares*
  • Easy online transfer for share purchase
  • Free statements every 4-month
  • Immediate confirmation on balance enquiry
  • Australian Citizen, Permanent Resident, Temporary Resident, Students, Work Permit Holders
  • Passport
  • Driving License/Medicare/Any other ID confirming Residency in Australia

 

 Features & Eligibility

Children’s Education

Fund Account

  • Potentially Long term investment account
  • Share can be redeemed at any point of time without losing dividend earned
  • Managed by legal guardian by paying $10 as membership fee
  • Annual Dividend paid potentially $1 per share higher than that of General Membership account up to $25,000, ordinary dividend applies to higher amount
  • Minimum investment of $50
  • 30-day notice to redeem more than 50 shares on emergency situation*
  • Easy online transfer for share purchase
  • Free statements every 4-month
  • Immediate confirmation on balance enquiry
  • Transfer to Ordinary Member Account once the child turns 18 with a fee of $90
  • Australian Citizen, Permanent Resident, Temporary Resident, Students, Work Permit Holders
  • Child’s Birth Certificate
  • Evidence of Guardianship
  • Passport of the Child
  • Driving License/Medicare/Any other ID of the Guardian/account signatory confirming Residency in Australia

 

Features & Eligibility
Self-managed Super-Fund
  • Self-managed Super Fund
  • Potentially Long term investment account
  • Annual Dividend paid $1 per share higher than that of General Membership
  • Minimum investment of $50
  • 30-day notice to redeem more than 50 shares*
  • Easy online transfer for share purchase
  • Free statements every 4-month
  • Immediate confirmation on balance enquiry
  • Australian Citizen, Permanent Resident, Temporary Resident, Students, Work Permit Holders
  • Passport
  • Driving License/Medicare/Any other ID confirming Residency in Australia
  • Copy of Signed Deed
  • Copy of letter of ABN notification from Australian Business Register (ABR)

 

 Features & Eligibility
Hajj Fund Account
  • Potentially Long-term investment account
  • Annual Dividend paid potentially $1 per share higher than that of General Membership account
  • Higher Dividend applicable up to $10,000, ordinary dividend applicable to any additional amount after $10,000
  • 30-day notice to redeem more than 50 shares*
  • Easy online transfer for share purchase
  • Free statements every 4-month
  • Immediate confirmation on balance enquiry
  • Australian Citizen, Permanent Resident, Temporary Resident, Students, Work Permit Holders

 

Finance Products

 Features & Eligibility
Car Finance
  • 100% funded from member investment
  • Any car is financed*
  • Both for Personal or business purposes
  • Finance available max 80% or $25,000 of car price, whichever is lower
  • 1 to 5 years tenure based on the finance amount
  • 100% Riba free, Profit sharing Murabaha scheme
  • Australian Citizen or Permanent Resident
  • 3-month relationship with ICFAL
  • Contact ICFAL for document requirements
 Features & Eligibility
Property/Land Finance
  • 100% funded from member investment
  • Finance available max 80% or $700,000 of property price, whichever is lower
  • Up to 30 years tenure depending on applicant’s age*
  • 100% Riba free, Profit sharing Musharaka scheme
  • Fixed cost sharing with ICFAL
  • Australian Citizen or Permanent Resident
  • 6-month relationship with ICFAL
  • Contact ICFAL for document requirements
Features & Eligibility
Istisna Finance for Property Construction
  • 100% funded from member investment
  • Finance available max 80% or $700,000 of property price, whichever is lower
  • Stage by stage payment during construction
  • Up to 30 years tenure based on type of finance and applicant’s age
  • 100% Riba free, Profit sharing Musharaka scheme
  • Fixed cost sharing with ICFAL
  • Australian Citizen or Permanent Resident
  • 6-month relationship with ICFAL
  • Contact ICFAL for document requirements