Education Murabaha
Product concept:
The Murabaha program is a short term loan to
finance education expenses (tuition fees, books, teaching aids, postgraduate
studies) based on the Murabaha process, which is covered by Wakala. The client
obtains a statement of his/her tuition expenses from the educational
institution, and subsequently the bank pays the value of the Education Murabaha
to the institution via either a check or transfer of the value to Banque Misr
or another bank. Alternatively, the payment can be made in cash through the
customer in accordance with the Murabaha terms covered by Wakala, whereby the
bank pays the value to the educational institution by proxy through the client,
in order to pay off the Murabaha to the educational institution. The bank
should be provided with a copy of the payment receipts, and an agreed-upon
profit margin is applied to the Murabaha. The total Murabaha value (Murabaha
profit and profit margin) is then divided over installments as per an agreement
between the Bank and the customer.
Education Murabaha is provided through the following financing programs:
- Employees with an undertaking from the
employer to transfer the salary/monthly instalment.
- Employees with a certificate of income.
- Liberal professionals and business
owners with proof of income.
- Owners of savings
(Egyptians/foreigners).
- Pensioners (with/without an undertaking
to transfer the pension).
General conditions for granting Murabaha:
- Competitive interest
rate
- The minimum age is 21
and the maximum age should be 65 at the date of maturity of the Murabaha (on
the condition that the maturity date is not later than the employee’s
end-of-service date)
- The maximum value of
the Murabaha amounts to EGP 500,000
- The maximum funding
rate is 100% of the tuition fees (with specific terms)
- The maximum duration
of the Murabaha is 36 months
Main required documents:
- Application for
Education Murabaha
- Copy of valid
national ID card
- Recent utility bills
(gas/electricity/water/telephone) from the applicant’s residence
- Statement of tuition
fees
Employees
- Statement of monthly
salary
- Undertaking from
employer to transfer salary/monthly instalment
Liberal
professionals and business owners
- Copy of tax card
- An official
certificate from the Commercial Registry for commercial and industrial
activities
- License to practice
the profession for self-employed persons
- Bank statement
covering the last six months
Pensioners
- Statement of the
value of the monthly pension transferred to the bank (in the event of the
transfer of pension without the undertaking to transfer)
- An undertaking from
General Authority for Insurance and Pensions or the body entrusted with the
transfer of the pension (in the event that the entity undertakes to transfer
the pension)
Additional benefits:
- In accordance with
the provisions of Islamic Shariah and under the supervision of a legitimate
body.
- The option to finance
the costs of education for any individual, whether relatives or non-relatives
(with special terms).
- The option of funding
education costs for pensioners (with/without undertaking).
- Government or private
sector employees are not required to transfer salaries or premiums.
- Free insurance policy
against death and disability risk throughout the Murabaha period.
- Free insurance policy
against risk of death for pensioners only.
* Terms and conditions apply