Modes of Investment

Bai Murabaha Muajjal

Bai-Murabaha is a mode of trade permitted by Shariah (Islamic Jurisprudence). At present Islamic Banks mostly use this mode as one of their modes of Investment / Credit. Bai-Murabaha means sale at a profit or mark up sale. Under this mode, Bank purchases certain goods indented by its client and sells the same to him/her at a profit. One of the fundamental features of Bai-Murabaha is that under this mode the purchaser shall have the right to know the cost price of the goods from the seller. In other words the seller (Bank) must declare the amount of cost of the goods and profit thereon distinctively. Deferred mode of payment is known as Muajjal. Therefore, our financing under the captioned mode deferring the payment with instant delivery of the goods is termed as Bai-Murabaha Muajjal.

Sectors to use the mode of finance

Bai-Murabaha Mu'ajjal.is the mode of finance which is used to buy any kind of fungible goods for both individual or institutional clients. The mode is used in the following sectors of financing

• Working Capital Finance: To purchase any commercial goods for further trade like RMG, food grain etc.
• Post Import: To ensure post-import facility for commercial goods
• SME finance sector as working capital etc.