The funding is provided under the Sharia concept of Murabaha Commercial for acquisition of vehicles, goods and equipment – and under Diminishing Musharakah for acquiring commercial property.
Murabaha is a contract between the Bank and you, where the Bank either purchases the vehicle, goods or equipment, with full ownership; or appoints you to make the purchase on its behalf. The Bank then sells it to you on a cost-plus-profit basis.
Diminishing Musharakah is where the Bank and you become joint owners of a property, and the Bank’s share is further divided into a number of units. The contract lets you buy the Bank’s share at a pre-agreed price, or at market price, or at a price agreed upon at the time of sale. The Bank earns a profit from renting you its share until the title of the property is completely transferred to you.
