arrow_ttl.gifSMEs Financing Murabaha

 

First: SMEs Financing Murabaha (Up to EGP 4 million)

 

Product Concept

 

The Murabaha program is a short term loan to finance all types of individual and corporate entities. It is based on the Murabaha process, whereby the customer applies for the purchase of the commodity, including machines, equipment, cars, etc. The bank purchases the goods and resells them to the customer with a profit margin. The total value of purchased goods and the profit margin is distributed over a set of installments agreed between the bank and the customer.

  • The maximum value of the financing for working capital is EGP 2 million
  • The option of increasing the amount of financing up to EGP 4 million, provided that the financing includes machinery, equipment and working capital together, in accordance with the terms and conditions

General conditions for granting the Murabaha:

  • Competitive interest rate (in accordance with the Central Bank of Egypt’s initiative for SMEs)
  • The minimum age is 21 years and the maximum is 60 years at the date of maturity of the Murabaha
  • The maximum value of the Murabaha is EGP 4 million, provided that the financing includes machinery, equipment and working capital
  • The maximum duration of Murabaha is five years
  • Murabaha payments are made in monthly installments

Main required documents:

  • Establishment contract for the company and any modification contracts
  • Copy of a valid national ID card for the customer and the guarantor
  • License to practise the profession
  • A recent certificate from the Commercial Registry
  • Copy of (valid) tax card
  • Tax and insurance status
  • Financial statements for the project
  • Feasibility study
  • Copy of the project ownership certificate or lease contract and recent electricity bill

Additional benefits:

  • In accordance with the provisions of Islamic Shariah and under the supervision of a legitimate body.
  • The option to finance the working capital for companies and factories, as well as machinery and equipment required for the business activity.
  • The option to obtain a grace period of up to one year.

 

*Terms and conditions apply

 

Second: Medium- and Long-Term Murabaha through the following programs:

  1. Private School and University Financing Murabaha
  2. Medical Equipment and Machinery and Private Hospitals and Medical Centers Financing Murabaha
  3. Factory Machinery and Equipment Financing Murabaha
  4. Transportation for Business Activity Financing Murabaha

 

1.    Private School and University Financing Murabaha

 

Product Concept

  • Purchasing buses/minibuses
  • Financing buildings, construction, expansions and finishing
  • Financing class, hall and lab facilities (furniture, equipment, etc.)

Product Specifications

  • Targeted segments: private schools, institutes and universities
  • Type of facility: medium or long-term - with a maximum of five years
  • Financing limit: up to EGP 20 million
  • Financing rate:
    • Up to 80% for buses/minibuses and class/hall/lab facilities
    • Up to 70% for buildings, construction, expansion and finishing

Main required documents:

  • Companies gazette and/or company establishment contract
  • Certified financial statements for the last three years (net profit achieved) and annexes
  • License to practice the profession from the relevant authority
  • Recent certificate from the Commercial Registry, no older than three months
  • Copy of (valid) tax card
  • Copy of valid national ID cards for board members and/or partners
  • Disclosure of expected cash flows and technical and financial study
  • Quotation from suppliers for the purchase of buses/minibuses or classroom/hall/lab facilities
  • Tax and insurance status

*Terms and conditions apply

2.    Medical Equipment and Machinery and Private Hospitals and Medical Centers Financing Murabaha

 

Product Concept

A Murabaha program for the financing of medical equipment and devices for labs, private hospitals, radiology centers and treatment centers, based on the Murabaha process.

 

Product Specifications

  • Targeted segments: labs and radiology centers/treatment centers/private hospitals/physiotherapy centers
  • Type of facility: medium or long-term - with a maximum of five years
  • Financing limit: up to EGP 20 million
  • Financing rate:
    • Up to 75% for local purchases
    • Up to 60% for imports

Main required documents:

  • Companies gazette and/or company establishment contract
  • Certified financial statements for the last three years (net profit achieved) and annexes
  • Activity license and industrial registry (renewed)
  • Recent certificate from the Commercial Registry, no older than three months
  • Copy of (valid) tax card
  • Copy of valid national ID cards for board members and/or partners
  • Disclosure of expected cash flows and technical and financial study
  • Quotation or preliminary receipt from suppliers
  • Tax and insurance status, certified from a legal accountant

 

*Terms and conditions apply

 

3.    Factory Machinery and Equipment Financing Murabaha

 

Product Concept

A Murabaha program to finance the purchase of machinery and equipment for all kinds of factories and contracting companies (general/specialized):

  • Machinery and equipment (new/used from abroad) for factories
  • Production lines (full/partial) for factories
  • Substitution and/or renewal (machinery, equipment, production lines) for factories
  • Purchase of machinery and equipment for contracting companies

Product Specifications

  • Targeted segments: industrial/contracting sector
  • Type of facility: medium or long-term - with a maximum of five years
  • Financing limit: up to EGP 20 million
  • Financing rate:
    • Up to 75% for local purchases
    • Up to 60% for imports
    • For used machinery: up to 60%, provided that the machinery is no more than five years old

Main required documents:

  • Companies gazette and/or company establishment contract
  • Certified financial statements for the last three years (net profit achieved) and annexes
  • Activity license and industrial registry (renewed)
  • Recent certificate from the Commercial Registry, no older than three months
  • Copy of (valid) tax card
  • Copy of valid national ID cards for board members and/or partners
  • Disclosure of expected cash flows and technical and financial study
  • Quotation for the machinery and equipment to be financed
  • Tax and insurance status, certified from a legal accountant

*Terms and conditions apply

4.    Transportation for Business Activity Financing Murabaha

 

Product Concept

A Murabaha program for the purchase of cars, trucks, private buses, tourism buses and microbuses, based on the Murabaha process.

 

Product Specifications

  • Targeted segments: industrial/commercial/services contracting sector
  • Type of facility: medium or long-term - with a maximum of five years
  • Financing limit: up to EGP 20 million
  • Financing rate: up to 80%

Main required documents:

  • Companies gazette and/or company establishment contract
  • Certified financial statements for the last three years (net profit achieved) and annexes
  • Activity license and industrial registry (renewed)
  • Recent certificate from the Commercial Registry, no older than three months
  • Copy of (valid) tax card
  • Copy of valid national ID cards for board members and/or partners
  • Disclosure of expected cash flows and technical and financial study
  • Quotation for the vehicles to be financed
  • Tax and insurance status, certified from a legal accountant

*Terms and conditions apply


Third: SMEs Financing Murabaha for Working Capital for Companies and Factories (Ready-Made Facilities Project)

Product Concept

  • Financing is provided for existing businesses, with the option of financing start-ups, for all establishments, institutions, companies and factories operating in Egypt (in accordance with the Central Bank of Egypt’s definition of SMEs)
  • Financing is provided through the Murabaha process/in instalments to meet the short-term needs for operational costs (working capital), in the form of:-

Direct Facilities:

Financing is provided through the Murabaha process, whereby the customer submits an application to obtain the commodity, and the bank purchases the commodity and resells it to 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.

Contingent Facilities:
Through documentary credits/letters of guarantee

General conditions for granting the Murabaha:-

  • Competitive interest rate (in accordance with the Central Bank of Egypt’s initiatives)
  • The amount of financing is determined according to the specific financing needs of each institution

Main required documents

  • Companies gazette and/or company establishment contract
  • Certified financial statements for the last three years for existing enterprises
  • Recent certificate from the Commercial Registry, no older than three months
  • Copy of valid national ID cards for partners and contributors
  • Activity license/industrial registry
  • Copy of (valid) tax card
  • Tax and insurance status, certified from a legal accountant
  • Feasibility study for startups and disclosure of expected cash flows
  • Copy of the project ownership certificate or lease contract and recent electricity bill
  • Certificate from the Egyptian Federation of Construction and Building Contractors (for contracting companies)

 

*Terms and conditions apply