Features

• The Islami Shariah principle of investment under HPSM which means the rent shall be devisable as per equity involved, unpaid rent if any shall not be treated as equity and the asset shall be acquired on participation ownership.
• Possession of the asset shall be passed on to the client for use as per practicability.
• Bank shall retain the ownership till payment of equity portion of the Bank along with rental.
• The ownership of the asset shall gradually pass on to the client upon payment of Bank's equity involved and on the reverse upon increase of client's equity.
• Rent shall not be compounded in any case. i.e. no rent shall be charged on unpaid/outstanding rent. Incidence of rent shall be reduced proportionately with the reduction of equity of the Bank on payment of installment by the client.
• Since it is a kind of Musharaka, cash can be paid to the credit of clients account. However, the purpose for which cash is disbursed must be ensured form the point of Banking.
• In case of need the equity portion may be increased or decreased by making lumpsum payment by either side. Very often the client may require funds to run the equipments/machineries for short period as working capital which may be paid to the debit of respective HP-A/c if found feasible and covered by the value of assets.

Types of HPSM

• HPSM (General)
• HPSM(Industrial)
• HPSM(Machinery)
• HPSM (Real Estate)
• HPSM(Transport)