Bai-Murabaha – Short Term Post Import Finance (PIF)

MBL-Taqwa Islamic Banking offers Bai-Murabaha modes of finance as Post Import Finance (PIF) to meet up working capital requirements in business of the customers. “Bai-Murabaha” is the combination of two Arabic words ‘Bai’ and ‘Ribhun’. ‘Bai’ refers to Purchase & sale while ‘Ribhun’ means agreed upon profit. “Bai-Murabaha” may be defined as a contract between a Buyer and a Seller under which the Seller sells certain specific goods permissible under Islamic Shari’ah and the law of the land to the Buyer at a cost plus agreed profit payable in cash or on deferred payment basis. The profit marked-up may be fixed in lump sum or as a percentage of the cost price of the goods. In case of Bai-Murabaha Finance, declaration of cost of the goods by the seller is mandatory as per Shari’ah. In this case goods delivery to the client at deferred payment on trust and bank obtain a trust Receipt for legal implication.

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