Features

• Bank must purchase the goods so that ownership of Bank on the goods is established at least for a moment.
• There must be three parties in order to perform buying & selling under Murabaha (a) Bank (b) Seller of goods (c) Purchaser of goods. Goods however must not be purchased form client or from any of its sister concern. Goods must also be halal as per Shariah.
• A commodity in the true sense of the term must be involved in buying & selling.
• There must be an agreement between the Bank and the client cost of the goods sold and the amount of profit added therewith should be separately & clearly mentioned in the MURABAHA AGREEMENT.
• After procurement of the goods the client shall take delivery of the same signing on the reverse of the purchase schedule. And immediately after the bank shall take the goods on pledge as security of Bank's investment.
• On expiry of the stipulated period, Bank can terminate the contract and dispose of the pledged goods at its own discretion.