Shariah Concept

Product Shariah Concept
Property Financing-i
Commodity Murabahah (Tawarruq)

Tawarruq consists of two sale and purchase contracts. The first involves the sale of an asset / commodities by MBSB to customer at Selling Price based on Murabahah concept (cost plus profit) on deferred payment / instalment. Subsequently, the customer will sell the same asset / commodities to a third party on a cash and spot basis at an amount equivalent to Purchase Price.

Under this product, customer will enter into Wakalah contract, appointing MBSB as his Purchase Agent and Sale Agent to buy and sell the commodities to facilitate the Tawarruq arrangement.

Personal Financing-i
Commodity Murabahah (Tawarruq)

Tawarruq consists of two sale and purchase contracts. The first involves the sale of an asset / commodities by MBSB to customer at Selling price based on Murabahah concept (cost plus profit) on deferred payment / instalment. Subsequently, the customer will sell the same asset / commodities to a third party on a cash and spot basis at an amount equivalent to Purchase Price.

Under this product, customer will enter into Wakalah contract with MBSB, appointing MBSB as his Sale Agent to sell the commodities to facilitate the Tawarruq arrangement.

Term Deposit-i
Commodity Murabahah (Tawarruq)

Tawarruq consists of two sale and purchase contracts. The first involves the sale of an asset / commodities by customer to MBSB at Selling price based on Murabahah concept (cost plus profit) on deferred payment i.e. to be paid in accordance to placement tenure. Subsequently, MBSB will sell the same asset to a third party on a cash and spot basis at an amount equivalent to customer’s placement.

Under this product, customer will enter into Wakalah contract, appointing MBSB as his/her Purchase Agent and Sale Agent to buy and sell the commodities to facilitate the Tawarruq arrangement.

Murabahah

Murabahah refers to the selling of goods/assets / commodities at a price whereby the costs and profit margin (mark-up) are made known and agreed to by both parties.

Wakalah

Wakalah refers to a contract in which a party, as principal (muwakkil), authorizes another party as his agent (wakil) to perform a particular task in matters that may be delegated, with or without imposition of a fee.