26. Step by step Murabaha financing (under Agency arrangement)
27.
28. 2. Client appointed as ‘Agent’ to purchase goods on bank’s behalf Agency Agreement Agreement to Murabaha Bank Client Murabaha
29. 3. Bank gives money to Agent/supplier for purchase of goods. Disbursement to the agent or supplier Agency Agreement Supplier Agreement to Murabaha Bank Client Murabaha
30. 4. The agent takes possession of goods on bank’s behalf. Transfer of Risk Delivery of goods Vendor Bank Agent Murabaha
31. 5(a). Client makes an offer to purchase the goods from bank through a declaration. Offer to purchase Bank Client Murabaha
32. 5(b). Bank accepts the offer and sale is concluded. Murabaha Agreement + Transfer of Title Bank Client Murabaha
33. 6. Client pays agreed price to bank according to an agreed schedule. Usually on a deferred payment basis (Bai Muajjal) Payment of Price Bank Client Murabaha
89. 3. Undertaking to Purchase Musharakah Units Purpose: This is an undertaking by the customer to purchase Bank’s Musharakah units. Components: - Normal Sale Price - Additional Unit Purchase Price 4. Undertaking to Sell Musharakah Units Purpose: This is an undertaking by the Bank to sell its Musharakah units from time to time. Components: - Normal Sale Price - Additional Unit Purchase Price Legal Documentation
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