Barkat Islamic - Murabaha

‘Murabaha’ is a term of Islamic FIQH and it refers to a particular kind of sale in which the seller discloses the cost of goods being sold and margin of profit. The payment of price in the case of Murabaha may be on the spot or it may be deferred, as agreed upon by the parties. Since Murabaha is a kind of sale, the basic rules of sale are applicable to all Murabaha transactions (without which this transaction is not valid).

These rules are:
1. The subject of sale must exist at the time of sale
2. The subject of sale must be in the ownership of the seller
at the time of sale
3. The subject of sale must be in the physical or constructive
possession of the seller when he sells it to another person

Who can benefit from Barkat Murabaha and for what purposes?
1. Barkat Murabaha can be used by individuals,sole-proprietorships,
partnerships and bodies corporate
2. Purchase of inventories, raw materials, semi-finished / finished goods,
stores & spares and all kinds of consumables can be made through Barkat
Murabaha
3. Barkat Murabaha is an ideal mode for short term credit (up to 12 months)
as it offers flexible credit terms to match the Customers’ cash-flows

Document Required
1. For Individuals
* Brief profile of business
* Copy of CNIC of the individual / proprietor (original must be shown)
* 06 month bank statement
* Bank certificate, if proprietorship concern
* Proof of income
* Audited/Management accounts, if proprietorship concern
* Details of facilities availed from other Financial Institutions
* Copy of NTN certificate (original must be shown)
* Facility request letter duly signed & stamped
* Full details of proposed assets to be purchased
2. For Partnership / Corporate / Commercial
* Company Profile
* Facility request letter
* Audited financial statements with financial projections
* Banking details and facilities availed from other banks
* Net worth statement of all directors (not applicable For Public
Limited Companies)
* Basic Customer Fact Sheet
* Copy of CNIC of all partners / directors (original must be shown)
* Copy of NTN certificate (original must be shown)
* Export Performance Certificate (for Exporters Only)
* Form ‘3’ (for Public Limited Companies Only)
* Copy of Memorandum and Articles of Association
* Certificate of incorporation and commencement of Business
* Copy of Form ‘A’ & ‘29’
* Certified copy of partnership deed


Barkat Murahaba Documentation (For Local Purchases)

After the credit approval, the customer has to sign the following documents:
1. MMFA - Master Murabaha Facility Agreement
2. Agency Agreement, if appointed as an agent
3. Purchase requisition
4. Declaration, including evidence of purchase
5. Offer & Acceptance
6. Payment Schedule, if price is deferred
7. Demand Promissory Note


Barkat Murahaba Documentation (For Imports)

After the credit approval, the customer has to sign the following documents:
1. MMFA - Master Murabaha Facility Agreement
2. Agency Agreement
3. Application for opening the letter of credit
4. Offer & Acceptance
5. Payment Schedule, if price is deferred
6. Demand Promissory Note


Note: For other than salaried or individual customers, further documents are required.