Murabaha

Murabaha is a sale contract between two parties-seller and buyer. Customers can avail Murabaha for purchase of any Tangible Asset like, Real Estate, Stocks, Machines, Equipments (both import and local), Goods (perishable and un-perishable), Furniture, Raw Materials, Vehicles or any other identifiable tangible or intangible assets or goods, including shares of companies which are Shariah complaint. Badr will first procure the goods and then sell the same goods for a price which is cost plus a fixed mark-up per annum taking into account of the facility tenor

Areas of Application:

Murabaha can be used to provide all type of short term corporate facilities if they are backed by tangible assets. It is also used in trade finance (L/Cs) and consumer finance.  It can be used as a substitute for Short Term Financing and Medium Term Financing. Trust Receipts, LC / TR facilities, Share Finance, Financing of working capital/ inventory, vehicle finance, etc. can also be financed under Murabaha financing