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Murabahafinalpresentationsonia1 1 160417092910
Murabahafinalpresentationsonia1 1 160417092910
Murabahafinalpresentationsonia1 1 160417092910
(GROUP 3)
PRESENTED BY:
SONIA MOBEEN (6439)
FAREHA AHMED (6432)
WAJEEHA PERVEZ (6197)
SIKANDER KHAN (5390)
NAVEED AHMED SIDDIQUI (0722)
CONTENT
INTRODUCTION
DEFINITION
DIFFERENCE B/W MURABAHA & MUSAWAMAH.
BASIC RULES OF SALES
BAI MUAJJAL
EVIDENCE
MODE OF FINANCING
BASIC FEATURES
ISSUES
MISTAKES
CONCLUSION
MURABAHA
Murabaha is a particular kind of sale where
the seller expressively mentions the cost of
the commodity purchased, and sells it to
another person by adding some profit
thereon.
Thus, Murabaha is not a loan given on interest
It is a sale of a commodity for cash/deferred
price.
DIFERENCE B/W MURABAHA AND
MUSAWAMAH
MURABAHA MUSAWAMAH
Its a particular kind of It is a sale on agreed
sale where the seller price without referring to
discloses its cost & profit the first price on which
charged. the seller has purchased.
BASIC RULES OF SALES
The subject of sale must exist.
MAJORITY OF
SAHABAH,IMAM OF
MAZHAB CONSIDER
MURABAHA AS A
PERMISSIBLE CONTRACT
BASED ON ISLAM
PILLERS
SELLER
BUYER
PRICE
MERCHANDISE OR GOODS
SIGHAH (IJAB)AND ACCEPTANCE (QABUL)
MODE OF FINANCING OF
MURABAHA
PAYMEN
PAYMENT T OF
OF PURCHA
PURCHASE SE
PRICE PRICE +
PROFIT
SUPPLIERS OF CUSTOMER
ISLAMIC BANK
GOODS
1. Client and bank sign an agreement to
enter into Murabaha (MMFA)
Bank Client
Agreement to
Murabaha
2. Client appointed as agent to purchase
goods on banks behalf Agency Agreement
Bank Client
Agreement to
Murabaha
Agency
Agreement
3. Bank gives money and issue purchase
Order to client for purchase of goods
AGREEMENT TO MARABAHA
Client
Bank
Agency Agreement
Bank Client
5 . Client makes an offer to purchase the
goods from bank.
Bank Client
Offer to purchase
6. Client pays agreed price to bank according to an
agreed schedule. Usually on a deferred payment
basis Bai Muajjal
Murabaha Agreement
+
Transfer of Title
Bank Client
'buy-back' agreement
It is also a necessary condition for the validity
of murabahah that the commodity is
purchased from a third party. The purchase of
the commodity from the client himself on a
buy back agreement is not allowed in
the Shariah. Thus murabahah based on 'buy-
back' agreement is nothing more than an
interest-based transaction.
ISSUES OF MURABAHA
1. Securities against Murabahah
Payments coming from the sale are receivables
and for this, the client may be asked to furnish a
security. It can be in the form of a mortgage or
hypothecation or some kind of lien or charge.
2. Guaranting the Murabahah
The seller can ask the client to furnish a 3rd party
guarantee. In case of default on payment the seller
may have recourse to the guarantor who will be liable
to pay the amount guaranteed to him.