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Tuesday 7 September, 2010
Islamic Lending Products

Products we offer

  • Murabaha (maximum of 3 years)
  • Ijarah (normally 3 to 5 years)
  • Diminishing Musharakah (3 to 5 years with a 40% contribution / down payment by the client towards the purchase price)
  • Letters of Guarantee

Products explained

Product Explanation Used For
Murabaha (cost-plus) You purchase goods at a price that includes a profit margin agreed by you and HBZ Bank. The price, profit margin and other costs are all clearly stated at the time the deal is finalised.
Raw & finished goods.
Trade finance facility for importers and exporters.
Ijarah (leasing) The bank purchases an asset or goods from a vendor and then leases them, at an agreed rental, over a specified time period to you. Upon expiry of the leasing period, ownership transfers to you. The rental, period of the lease and other costs are all clearly stated at the time the deal is finalised. Plant, machinery, motor vehicles, equipment, commercial vehicles etc.
Diminishing Musharakah The bank enters into an agreement or partnership for the purchase of a large asset. The terms of the agreement state that ownership of the asset will decrease on the part of the bank, and increase on your part – via share equity purchase hence the term, “diminishing partnership.” Property

Please contact the Islamic Branch for the mark-ups applicable to the above products