SMEs 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:
- Private School and University Financing
Murabaha
- Medical Equipment and Machinery and
Private Hospitals and Medical Centers Financing Murabaha
- Factory Machinery and Equipment
Financing Murabaha
- 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
