BANKING AFFAIRS

Detailed explanation-1: -Murabaha is an Islamic financing structure that works as a sales contract, fixing the price of goods or items as required by a customer, inclusive of a pre-agreed profit margin.

Detailed explanation-2: -Import Murabaha is a product, used to finance a commercial transaction which consists of purchase by the Bank (generally through an undisclosed agent) the goods from the foreign supplier and selling them to the customer after getting the title to and possession of the goods.

Detailed explanation-3: -Islamic contract that covers the sale and purchase transaction for the financing of an asset whereby the cost and profit margin (mark-up) are made known and agreed by all parties involved. The settlement for the purchase can be a deferred lump sum payment or an instalment basis of payments.

Detailed explanation-4: -Thus, Murabaha to purchase orderer is the customer’s request to the bank to buy a specific good, based on a promise from him to buy that commodity with an agreed profit, in addition to the commodity’s capital, with repayment typically in installments.