Step By Step Murabaha Financing l Murabaha Guidence

In any Islamic Financial Institution Step by Step Murabaha Financing and Murabaha guidence is as under.
Murabaha means sale of goods by a person to another person under an agreement where seller is obliged to disclose the Cost of Goods Sold to the buyer either on cash bases or deferred payment basis and margin of profit included in the sale price of goods agreed to be sold.
Under the process bank purchase the raw material from the market and would sell to the client on deferred payment basis by adding agreed profit.

Steps by steps guide of Murabaha Financing is mentioned below.

1. Client and bank sign an agreement to enter into Murabaha.
2. Client appointed as agent to purchase goods on bank's behalf.
3. Bank gives money to supplier for purchase of goods.
4. The agent takes possession of goods on bank's behalf.
5. Client makes an offer to purchase the goods from bank through declaration.
6. Bank accepts the offer and sale is concluded.
7. Client pays agreed price to bank according to an agreed schedule.Usually on a deferred payment basis (Bai Muajjal).

These were the step by step Murabaha Financing guidence.