SMEs Financing Murabaha
Product Concept
An installment deferred Murabaha program to finance all types of individually owned companies, public companies, and financial institutions. It is based on the Murabaha formula, where the client applies to obtain the commodity, such as machines and equipment, cars, raw materials and goods, and the bank purchases that commodity or merchandise and resells it to the client with an agreed profit margin. The total value (the value of the purchased goods + the bank’s profit margin) is then distributed over a set of installments to be agreed upon between the bank and the client.
- The maximum value of the financing for working capital is EGP 5 million
- The option of increasing the amount of financing up to EGP 8 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 69 years at the date of maturity of the Murabaha
- The maximum value of the Murabaha is EGP 8 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
- Military service document (if it exists)
- License to practice 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 commercial electricity bill
- Accountant documents concerning the lease
- Technical feasibility study for the financing of machinery, equipment and/or cars
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:
Financing Ratio
Buying new machines: a maximum of 75%
Buying used machines: a maximum of 60%
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:
-
- In the case of financing new machines, a maximum of 75%
- In the case of financing used machines: a maximum of 60%
-
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
