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 installment.
- 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
- Statement of monthly salary
- Undertaking from employer to transfer salary/monthly installment
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
- 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)
- 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