arrow_ttl.gifFirst: SMEs Financing Murabaha (EGP 1,000 to EGP 150,000)

 

Product Concept

A short-term Murabaha program to finance micro-enterprise owners with commercial, industrial or service activities, with annual revenues of no more than EGP 1 million. Financing is provided through Murabaha to the Purchase Orderer or Murabaha through Wakala, whereby the customer signs a contract to finance the purchase of goods. Subsequently, the Murabaha process is undertaken for the customer with an agreed upon profit margin. The total value of the Murabaha (Murabaha sales value and profit margin) is divided over a set of instalments agreed upon between the customer and the bank.

 

General conditions for granting Murabaha:

  • The minimum age is 21 and the maximum is 65 upon the Murabaha maturity.
  • The enterprise must have been functional for at least a year.
  • The customer’s business activity should be within the city, village or center where the Islamic banking branch is located.
  • The activity should not be illegal according to Shariah or prohibited according to the policies of the product (agricultural/animal/poultry/fish/transportation).

Murabaha is granted for micro-enterprises through two main products, as follows:

Statement

Product 1

Product 2

Targeted Groups

The target group for this product is owners of micro-enterprises engaged in commercial, industrial or service activities. This segment falls under the category of small traders (the owners do not have a commercial registry, license to practice the profession, tax card or social insurance).

The target group for this product is owners of micro-enterprises engaged in commercial, industrial or service activities. This segment is characterized by the existence of the following documents: a commercial registry, license to practice the profession, a tax card and social insurance)

Murabaha Sales Value

EGP 1,000 to EGP 30,000

EGP 30,000 to EGP 150,000

Murabaha Segments and Variations in Value

First Segment

From EGP 1,000

To EGP 15,000

Second Segment

More than EGP 15,000

Less than EGP 30,000

Customers with a credit history at Banque Misr or other banks over the previous six months can obtain Murabaha from the Second Segment, provided that they comply with the approved I-Score standards

First Segment

From EGP 30,000

To EGP 75,000

Second Segment

More than EGP 75,000

Less than EGP 150,000

Customers with a credit history at Banque Misr or other banks over the previous six months can obtain Murabaha from the Second Segment, provided that they comply with the approved I-Score standards

Murabaha Period

From 4 to 18 months

From 6 to 24 months

 

The product is provided through all Islamic banking branches

 

Main required documents:

  • Application for Murabaha for microenterprises
  • Copy of valid national ID card (both customer and guarantor)
  • Copy of the proof of presence (lease contract with a fixed date or ownership contract)
  • Recent utility bills (gas/electricity/water/telephone) from customer’s residence
  • The following documents are required for Product 2 only:
    • A recent certificate from the Commercial Registry
    • Copy of tax card
    • Copy of social security payment receipt

Additional benefits:

  • In accordance with the provisions of Islamic Shariah and under the supervision of a legitimate body.
  • The option of financing street vendors.
  • The option of financing projects managed domestically.
  • The option of financing projects managed by women.
  • The option of financing projects managed through stalls owned by the City Council.

 

*Terms and conditions apply