Bai Murabah this is financing that works under sharia compliant sells contract, fixing the price of goods or items as required by a customer, inclusive of a pre-agreed profit margin. PBZ IKHLAS enables to own commodities of your dream such as house, constraction items, car, business items such as cements, iron rods etc.
• You can be financed house hold items such as furniture
• You can purchase office items, car, motor bikes
• It’s avoids interest
• To get items of your dream
• Assist you in a business
• Enables you to do business
• Poverty irradiation
• You should a customer of PBZ IKHLAS
• For employed personal PBZ Bank have to enter MOU (Memorandum of understanding ) agreement with employer
• If a customer is business personal he/she should submit the following:
• Copy of business licence
• Copy of certificate of TIN
• Should submit business location
• Should submit audited financial report of at least two years
• Should submit cash flow (revenue and expenses) and how best he/she will repay the financed amount
• Should submit security (preferable non-moving items)
• Submit any other document as it may required
• Government employees
• Private sector employees
• Business personal and entities
• Farmers
• The buyer must know the original price of the asset.
• The profit (to seller) must be declared to the buyer whether it is a certain fixed amount of money or a percentage of the original price.
• If the asset was inflicted by any defects, the seller has to inform the buyer about it.
Murabah can be offered by adopting the following procedures:
• The client and the bank must sign an over-all agreement in which the bank promises to sell and the client promises to buy the commodity on an agreed ratio of profit added to the cost.
• The bank appoints the client as her agent for purchasing the commodity on her behalf and an agreement of agency is signed by both the parties.
• The client purchases the commodity on behalf of the bank and takes its possession as an agent of the bank.
• The client informs the bank that he has purchased the commodity on her behalf and at the same time makes an offer to purchase the commodity from the bank.
• The bank accepts the offer and the sale is concluded whereupon the ownership as well as the risk of the commodity is transferred to the client
The following are the documents integral to Murabah contract:
• All KYC documents as per the bank’s Operations Manual, AML and the bank’s Lending Policy.
• Agreement in which the bank promises to sell and the client promises to buy the commodity on an agreed ratio of profit added to the cost (Wa’d Mulzim).
• Seller’s Proforma Invoice or Seller’s Offer Letter to sell in the name of the Bank or endorsed to its name.
• Letter of offer
• Sale contract
• Security documents as listed in the Bank’s Lending Policy for commercial lending or employer’s guarantee for salaried financing.
• Declaration of Taking Delivery of goods
MRLC is a business financing product offered by the bank to meet the needs of financing facilities of business communities.
The facility offers a blanket line of credit to be used by customer on revolving basis to finance business requirements of multiple purchases of merchandise, stocks, inventories, etc. from the bank upon the bank purchasing the items from the seller/supplier (SELLER) on Murabah concept.
The aggregate limit of financing outstanding at any given time should not exceed the approved blanket line.
Any payment will free the facility to be rolled over for new purchases.
This facility is a substitute of overdraft on the conventional side.
The product is based on the Shariah concept of Murabah to the Purchase Order (MPO).
It is a contract wherein the Bank, upon request by the customer, purchases the items ordered by customer from the seller/supplier described in the quotation/pro-forma invoice. The bank will then sell the same to the customer on a deferred payment basis.
Each purchase is covered by Murabah Agreement with its own terms and conditions agreeable between customer and Bank.
Customer can place multiple orders from the bank to purchase up to the maximum blanket limit with each order assuming its own Murabah contract of terms and conditions as to amount and duration of financing.
MRLC follows all principles of Murabah and so the flowchart, procedures and accounting entries will be the same as in Murabah.
The following are the documents integral to MRLC contract:
• All KYC documents as per the bank’s Operations Manual, AML and the bank’s Lending Policy
• Sale contract
• Letter of offer
• Seller’s Proforma Invoice or Seller’s Offer Letter to sell in the name of the Bank or endored to its name
• Wakalah Agreement with the client authorizing him to take delivery on behalf of the Bank
• Security documents as listed in the Bank’s Lending Policy for commercial lending or employer’s guarantee for salaried financing.
• Declaration of Taking Delivery of goods
