Bai-Muajjal may be defined as a contract between a Buyer and a Seller in which the Seller sells certain specific goods (Permissible under Shariah and Law of the Country), to the Buyer at an agreed fixed price payable at a certain fixed future date in lump sum or within a fixed period by fixed installments.

Salient Features:

  • This is a mode of investment is usually used for working capital finance requirement of the client.
  • The Bank will purchase goods according to the client choice for onward sale to the client.
  • Payment of the sale price is deferred for a fixed period.
  • Bank will transfer the ownership and possession of the goods to client before receipt of sale price.
  • Bank will bear the risk of goods after purchase until those are actually delivered to the client.