Meaning of Mudarabah

STAGES OF MURABAHA CONTRACT

1. Promise Stage,
2. Agency Stage,
3. Acquiring Possession, and,
4. Execution.

Presentation on meaning of Mudarabah

PROMISE STAGE

CreditCredit Approval

• The transaction parties must be genuine.
• The nature of business must be in scope of the Murabahah, and it should be Halal as well.
• Deferred payment not permissible in case of Gold, Silver and Currencies.
• After these consideration limit may be approved.
  After Credit approval, the Bank will sign Murabahah Agreement.
• Sharia status of this agreement is promise

Purchase Requisition

• The Client orders the institution to buy certain goods for him and sell him the same after acquiring. The prerequisite is that the goods are not already owned by the client.
• At this stage of murabaha financing, the customer promises the institution to buy the goods which were acquired by the institute on his request.