Principles of Murabaha, an Islamic Financing Method
Posted by hidayathfund on September 24, 2009
Principles of Murabaha
The Business Finance facility uses the principle of Murabaha, with deferred payment and can be used in a contract which allows a customer to purchase goods and pay later without taking out a loan, on which they would be paying interest.
The customer can pay for the goods immediately, but normally the payment for the goods is deferred or paid in instalments. The financier is receiving a profit through its mark-up on the deferred sale.
E-Book on Murabaha available for download here