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Financing based on the "Murabahah" contract is short-term financing for commercial purposes granted by the Bank (KCB Bank Burundi Sahl Banking) to natural persons, companies, associations or institutions.

Murabahah is an Arabic word that defines a transaction of sale of a tangible good between a seller and a buyer with a price plus a clearly and explicitly determined margin. The profit (profit margin) and the repayment period (installments in general) are specified.

The distinctive feature of Murabahah of ordinary sale:*

  • The seller discloses the cost to the buyer.
  • A profit known to both parties is added.
  • Payment of the price (Murabaha) can be at the spot, in installments and in a lump sum after a certain period of time.
  • Therefore, Murabahah does not necessarily imply the concept of deferred payment.
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