"Murabaha" is defined as a cost-plus sale contract or a mark-up sale. Under this concept the cost of the asset must be made known to the purchaser. The asset will be purchased from supplier by us and sold to you on a deferred term.
As we will purchase the asset and later sell it to you on deferred term, you are not required to place advance payment equivalent to the full value of the Letter of Credit. However the we may request you to place some amount as deposit in order to mitigate our financing position.
Under "Wakalah", meaning agency, the bank will act as an agent on behalf of you. Under this concept, as we act as your agent, hence you are required to place an advance payment to fully cover the LC value.
Obtain application form from the Financing Department of MIB or download from the website. Complete the application form and submit along with the required documents mentioned below.
Completely filled application form
Quotation from the supplier (seller)
Copy of valid ID cards of company's directors
Copy of Registration certificate of the company/office
Copy of memorandum of articles of the company/ Copy of the partnership agreement if a partnership
Profile of the company/ partnership
Last three years audited financial report of the company/partnership
Current year management accounts of the company/partnership
Forecasted Cash flow statement for 3 years (including monthly cash flow for 1 year.)
Bank statement of the company/partnership (for last 6 continuous months)
Registration/Title document of the collateral(copy, original required if approved)
No objections from owner(s) of collateral to be mortgaged from the facility
Proof of annual fee payment to relevant authorities.
Product specification of the asset to be purchased.