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Product Description

It is a mode of investment under which the Bank at the instance of the client procures certain goods permissible under Shariah and the law of the country & sells those to the client at a price payable at a fixed future date in lumpsum or in fixed instalments under this mode goods are delivered in advance and price is paid later agreed by the parties.

Features
  • Goods are to be purchased from a third party excluding sister concern(s) of the client.
  • Ownership of Bank on the goods must be established at least for a single moment before salling the same to the client.
  • Like Murabaha, Bank is not bound to declare cost of goods and profit mark up separately.
  • It is a credit sale by which ownership of the goods is transfered by the Bank to the client before receipt of sale price. That is payment is deferred for a fixed period. Bank may or may not retain possession of the goods considering the security aspects. (However, in our Bank, generally, goods are delivered to the investment client but sufficient collateral and T.R. are kept.)

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