Murabaha is a sale contract where the seller at the time of executing the sale transaction, discloses the cost to the customer, and the profit charged thereon. Bank AL-Habib – Islamic banking Division (BAHL-IBD) offers Murabaha facility to finance purchase of inventory/ Raw material. Bank at the specific request of the customer, purchases the requested goods and after assuming the ownership and possession, sells the same to Customer. Since Murabaha is a sale transaction, price once fixed cannot be changed. Murabaha is offered to:
Istisna is a sale transaction where the buyer places an order to manufacture specified goods, and sale is concluded once the ordered goods are delivered to buyer. Bank offers istisna facility to meet entire working capital requirement of manufacturing enterprise. Bank offers Istisna facility to manufacture certain goods for the bank and upon receipt of goods sell the same in market by appointing the customer as sales agent. The product is offered to:
Musawamah is a sale transaction in which seller quotes a fixed price without any reference to cost or profit. Musawamah is used as a mode to finance the existing inventory and receivables of the customer. In Musawamah. Bank purchases the specific goods from customer and after assuming the ownership and possession, sells the goods in the market by appointing the customer as sales agent. The facility is offered to:
Running Musharakah is a financing facility based on Shirkat-ul-Aqd. In Running Musharakah, Bank participates in the operating activities of the business and share the profit or loss as per the actual performance of the business. Running Musharakah is a short term facility offered to Corporate customers.
Ijarah means to give something on rent. Bank offers Ijarah facility to meet long term financing requirements of the customer. Bank at the specific request of the customer acquire the asset and after acquiring the asset in workable condition delivers the same to customer on rent for a fixed period. The rental may be fixed or variable linked with a well-defined bench mark. The facility is offered for a maximum period of 7 years. The facility is offered for finance:
The facility is offered to
The facility is based on Shirkat-ul-Milk. Under the facility Bank and customer jointly own the asset and bank after assuming the ownership and possession of asset in workable condition rents outs its share of ownership to customer. Bank share of ownership is further divided into units which the customer undertakes to purchase periodically. DM facility is offered to meet medium and long term financing needs of:
The facility is offered to finance