Islamic Banking

Commercial and Corporate customers requiring financing will have the following financing facilities available to them to meet their requirements:

Murabaha

Murabaha may be defined as a contract between a Buyer and Seller under which the Seller discloses to the Buyer the cost of goods being sold and adds an agreed profit. Price is payable on spot or at a certain future date, in lump sum or in installments (deferred payments).

Murabaha Facility

Under the MURABAHA FACILITY, the Bank will first purchase the required goods directly or through an Agent. All costs incurred on such purchases will be borne by the Bank.
Subsequently the Bank will sell the goods to the customer on deferred payment basis (30 days to one year) at an agreed price comprising cost of goods purchased and Bank's profit.
On due date the customer will pay to the Bank the agreed price, in lump sum or as per the agreed installment schedule.

Ijarah (Leasing)

Ijarah means “to give something on rent”.The term “IJARAH’ is analogous to the English term “leasing“.

Firstly the Bank will purchase the Assets as required by the Customer and subsequently the assets will be leased to the Customer on the terms and conditions as agreed with him.

Ijarah Facility will be offered for the following assets:

Vehicles (both Commercial and Private)
Office Equipment
Plant and Machinery