Murabaha Import Letter of Credit Settlement Financing
Unique Features
Murabaha Import Letter of Credit Settlement Financing is a form of financing extended to trade partners/debtors/borrowers by converting the outstanding import letter of credit document’s value to a Murabaha term financing for a maximum period of one year when a customer is unable to clear the L/C documents due to shortage of working capital.
It is granted to existing high-value customers of the bank having financing risk rate- 1 or 2 or 3 who encounter a temporary cash-flow problem to settle the import L/C document value.
Accrued service charge/commission/profit rate on the advance account, if any, shall be fully paid in cash at the time of the request.