Istisna Financing

Q: What is Istisna Financing?

Istisna is a Shariah-compliant financing contract where Amal Takaful funds the manufacture or construction of a product/project according to your specifications, at a fixed price, and with delivery on an agreed date. You can then repay in installments or stages.

Q: How is Istisna different from Murabaha?

Murabaha: For ready-made assets (e.g., buying a car, machine, or equipment already available).Istisna: For assets that need to be built or manufactured (e.g., greenhouses, custom machinery, construction projects).

Q: How are payments structured?

Payments can be:Staged (based on project milestones, e.g., foundation, mid-way, completion)Installments (regular payments after delivery)Custom arrangements (depending on project type and agreement)

Q: Do I need to find the manufacturer or contractor myself?

Not always. You may:Suggest your preferred manufacturer/contractor, orAllow Amal Takaful to arrange with a trusted partner on your behalf.

Q: What types of projects are not eligible?

Projects or products that involve:Haram (prohibited) industries such as alcohol, gambling, or porkSpeculative or unethical activitiesNon-tangible services (Istisna is only for manufactured or constructed goods)

Q: What happens if the manufacturer delays delivery?

The contract includes an agreed delivery timeline. In case of delay:We work with the contractor to resolve the issue.You will not be charged any hidden costs.Adjustments are made fairly and transparently.

Q: Can Istisna be combined with other financing products?

Yes. In some cases, Istisna can be combined with Ijara (lease-to-own). For example, a building may be constructed under Istisna and then leased to you under Ijara until ownership transfers.

Q: What happens if I cannot repay on time?

We do not impose interest or penalties. Instead, we work with you to restructure your repayment schedule in a way that preserves both dignity and fairness.

Your Custom Creation, Our Shariah-Compliant Solution

This is a powerful and flexible financial tool that allows you to finance the manufacturing or construction of a specific asset. Think of it as a custom-order agreement.

Custom-Built Assets

Finance tailored manufacturing

Fixed Price & Timeline

No surprises, no hidden charges

Shariah-Compliant

Structured with Islamic principles

What Is Istisna?

Istisna is a Shariah-compliant contract where Amal Takaful:

Finances the manufacture or construction of a product/project based on your specifications
Ensures delivery on a fixed, agreed timeline
Lets you pay in installments or agreed stages

Unlike Murabaha (which is for ready-made assets), Istisna is for items that must be produced or built.

Example:

You’re a farmer in Morogoro, and you want to build a greenhouse to expand your tomato farm.

Since the greenhouse can’t be bought ready-made, it needs to be constructed to your specifications — size, materials, and irrigation system.

You come to us at Amal Takaful, and we agree to finance the construction at a fixed cost of TZS 3,000,000, with delivery in 3 months.

Together, we structure payments in 3 easy stages:

1st installment when construction begins
2nd installment halfway through
Final installment once the greenhouse is delivered

You get your greenhouse built exactly the way you need it.

You repay us in manageable installments.

The whole process is transparent and Shariah-compliant — no interest, no hidden costs.

Key Features:

We finance products or projects that must be manufactured or constructed to your specifications.
ou receive the asset or project on an agreed completion date.
Payments can be made in installments tied to project milestones.
You focus on your project, while we handle financing with transparency and trust.
100% halal financing with no interest, no hidden charges.

How Istisna Works

You Place the Order

You, as the customer, place an order with us to have something built, assembled, or manufactured. This could be anything from machinery to a house.

Clarity is Key

We'll work with you to ensure all the details are clearly specified, including the kind, quality, quantity, and a fixed, transparent price. This eliminates any uncertainty or ambiguity.

The Benefit

You get the exact item you need, and the financing is structured in a way that is fully compliant with Shariah principles, making it a reliable and ethical way to acquire custom goods.

Who Can Apply?

Manufacturers needing machinery
Farmers needing greenhouses or storage facilities
Builders/contractors needing structured financing
Small business owners requiring custom furniture or tools
Retailers seeking bulk made-to-order products

What You’ll Need to Apply

Build Your Vision the Halal Way

With Istisna Financing, you can create the products, tools, or buildings your business needs — without interest, pressure, or hidden costs.

Frequently Asked Questions (FAQ)

What is Istisna Financing?

Istisna is a Shariah-compliant financing contract where Amal Takaful funds the manufacture or construction of a product/project according to your specifications, at a fixed price, and with delivery on an agreed date. You can then repay in installments or stages.

How is Istisna different from Murabaha?

Murabaha: For ready-made assets (e.g., buying a car, machine, or equipment already available).
Istisna: For assets that need to be built or manufactured (e.g., greenhouses, custom machinery, construction projects).

How are payments structured?

Payments can be:

Staged (based on project milestones, e.g., foundation, mid-way, completion)
Installments (regular payments after delivery)
Custom arrangements (depending on project type and agreement)

Do I need to find the manufacturer or contractor myself?

Not always. You may:

Suggest your preferred manufacturer/contractor, or
Allow Amal Takaful to arrange with a trusted partner on your behalf.

How long does approval take?

Approval timelines vary based on project complexity, but most small-scale Istisna requests are reviewed within 5–7 working days.

What types of projects are not eligible?

Projects or products that involve:

Haram (prohibited) industries such as alcohol, gambling, or pork
Speculative or unethical activities
Non-tangible services (Istisna is only for manufactured or constructed goods)

What happens if the manufacturer delays delivery?

The contract includes an agreed delivery timeline. In case of delay:

We work with the contractor to resolve the issue.
You will not be charged any hidden costs.
Adjustments are made fairly and transparently.

Can Istisna be combined with other financing products?

Yes. In some cases, Istisna can be combined with Ijara (lease-to-own). For example, a building may be constructed under Istisna and then leased to you under Ijara until ownership transfers.

What happens if I cannot repay on time?

We do not impose interest or penalties. Instead, we work with you to restructure your repayment schedule in a way that preserves both dignity and fairness.

Apply for Istisna

Apply Now in 3 Easy Ways. Choose the method that works best for you: