GIB

The Rates of Financing Products

Last updated 01 April 2022

Examples of the method of calculating the profit margin for financing (working capital & long term)

Example #1

Financing typeShort term finance (Working capital)
Finance Calculation MethodAmount * Annual Profit Ratio/360 * number of days
AmountSAR 1,000,000
Period4 months
Percentage of administration fees (per use)1%
Annual Profit Ratio10%
Profit Calculation MethodBullet Repayment at the end of period
Number of financing days120 days
Profit during financing periodSAR 33,333
Amount of administration fees (per use)SAR 10,000

Example #2

Financing typeLong term financing
Finance Calculation MethodAmount * Annual Profit Ratio * Number of Years
AmountSAR 1,000,000
Period3 years
Percentage of administration fees (one time)3%
Annual Profit Ratio7%
Number of financing days360 (one year)
Profit for one yearSAR 70,000
Profit for 3 yearsSAR 210,000
Amount of administration fees (One time)SAR 30,000

Example #3

Financing typeLong term financing
Finance Calculation MethodAmount * Annual Profit Ratio * Number of Years
AmountSAR 3,000,000
Period2 years
Percentage of administration fees (one time)3%
Annual Profit Ratio7%
Number of financing days360 (one year)
Profit for one yearSAR 210,000
Profit for 2 yearsSAR 420,000
Amount of administration fees (One time)SAR 90,000
Gulf International Bank B.S.C. Licensed by the Central Bank of Bahrain as a local Conventional Wholesale Bank and as a Conventional Retail Bank (branch) C.R. 4660