Murabahah Import Letter of Credit Financing
Unique Features
Murabaha Import Letter of Credit is a facility that the bank extends to applicants who engaged in the import business or other applicants who import for various purposes using the bank’s funds, at zero percent margins paid, based on markup agreement. But the customer shall deposit 30% Hamish Jiddiyyah deposit or based on the IFB financing approving committee decision.
Murabaha financing requires the bank and the customer/importer to sign at least two agreements separately, one for the purchase of the goods to be imported and the other for appointing the importer as the bank (agency agreement). Once these two agreements are signed, the importer can negotiate and finalize all terms and conditions with the exporter on behalf of the bank.
The bank extends one-time or revolving Murabaha Import Letter of Credit facilities