Fixed Profit Margin
The profit margin is pre-agreed between the Bank and the customer for transparency in the cost of the asset.
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Murabaha Financing
Murabaha is a type of Islamic financing where the Bank of Khartoum helps customers buy goods by agreeing on a fixed price, which includes a set profit for the bank. The bank purchases the item from the customer’s preferred seller and then sells it to the customer. The customer repays the bank in instalments or as per the agreed payment terms. This is a fixed-income loan for the purchase of a real asset (such as raw materials, machinery, equipment, trucks, pre-export finance and other operational needs), with a fixed rate of profit determined by the profit margin.
Features
Clear Terms
All costs, including the purchase price, selling price, and additional expenses, are disclosed at the time of the agreement.
Asset-Based Financing
This financing is tied to real assets such as property, vehicles, or equipment.
No Additional Charges
Bank of Khartoum cannot charge extra profit for delayed payments beyond the contracted term.
Mortgage on Asset
The purchased asset serves as collateral with the bank until the financing is fully repaid.
Shariah-Compliant
The financing structure is fully aligned with Islamic principles, prohibiting interest-based transactions.
Benefits
Full Transparency
Customers know the exact profit margin and cost of the asset from the start.
Flexible Installments
Customers can repay the bank in agreed-upon instalments.
No High Penalties
Since the bank cannot charge extra for late payments, customers avoid high penalty fees.
Reduced Risk
The asset remains as collateral, ensuring the customer’s commitment and reducing risk for both parties.
Easy Asset Purchases
Murabaha can be used to purchase a range of real assets, including property, vehicles, and equipment.
Alternative Islamic financing
This Shariah-compliant financing offers an alternative Islamic financing to traditional loans, making it suitable for customers seeking interest-free options.
