Eligibility
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Muslims and non-Muslims individuals or joint account holders |
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Companies incorporated under the Companies Act |
Scope
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For working capital requirements |
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For personal consumption |
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For purchase of assets/properties |
Features
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No commitment fee on unutilised amount. |
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Maximum financing period (tenure) for particular ceiling rate is 5 years and the profit rate
will subject to periodical review. |
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Also available for shorter financing period of 3,6,9,12 months up to a maximum of 5 years. |
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The profit rate is at par with the Conventional OD rate. |
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Protection against rise in BFR by a fixed ceiling rate. |
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Third party financing is allowed. |
Concept
| Murabahah is another type of sale and purchase contract, with a deferred payment element. The
contract of sale may take place when a buyer who wishes to purchase assets, requests the Bank to
purchase assets at cost (purchase price) and in return the Bank will charge the buyer an agreed
profit margin which is incorporated into the selling price. The selling price is subsequently payable
on a deferred single payment. |
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