Purpose

To cater the post manufacturing / shipment financing requirement of the client by purchasing the inventory from the customer and subsequently sell the same by appointing the customer as an agent.

Under Musawama arrangement BAHL-IBD agrees with customer to purchase goods / commodities (finished goods) from time to time, up to a specific limit assigned.

Basic Rules of Musawama

• The subject matter must exist at the time of sale
• The subject matter must be in the ownership of seller
• The subject matter must be in the possession of seller
• The Price must be certain and agreed at the time of sale
• The subject matter must have value from Shariah perspective
• The transaction can either be spot or on deferred payment basis.

Target Market

The target market for Musawama Finance is Corporate / Commercial / Retail and SME sectors to meet their post manufacturing / shipment financing needs. These entities must fulfill BAHL-IBD credit entitlement criteria.

Difference between Musawama & Conventional Loan