Bai`-Murabaha is a contract between a buyer and a seller under which the seller sells specific goods, permissible under Islamic Shari’ah and the law of the land, to the buyer at a pre-agreed cost plus profit, payable at a future date in lump sum or by installments.
The marked up profit may be fixed in lump sum or in percentage of the cost price of the goods.
Purpose
To meet up day to day operational expenses of business concerns that need to maintain stock as working capital.
Sector
Trading (Corporate/CMSME), Manufacturing (Corporate/CMSME), Agriculture and Work Order finance.
Tenure
The tenure of the investment is one year; but may be renewed/ enhanced considering satisfactory performance of the business.
Types of Bai’-Murabaha:
(i) Bai`-Murabaha Commercial
Investment for purchase and sale of goods to individual or Firm or Company for Trading purpose. The tenure of the investment is one year; but may be renewed/ enhanced considering satisfactory performance of the business.
(ii) Bai`-Murabaha Industrial
Investment for purchase and sale of goods to Industrial Units for supply of Machinery, Equipments, Raw Materials etc. The tenure of the investment is one year; but may be renewed/ enhanced considering satisfactory performance of the business.
(iii) Bai`-Murabaha Agriculture
Investment for purchase and sale of goods to agricultural sector for supply of seeds, fertilizer etc. The tenure of the investment is one year; but may be renewed/ enhanced considering satisfactory performance of the business.
(iv) Murabaha Post Import (MPI)
MPI stands for Murabaha Post Import, i.e. Murabaha trade for procurement of goods by importation. In other words, it is Bai Murabaha by import.