What is Murabaha?

Murabaha is one of the most popular Islamic finance structure that is widely used by Islamic banks for financing the sale/purchase of goods and commodities. It is based on the concept of cost plus profit. Under this structure the buyer agrees to buy a commodity on a cost plus profit basis. The basic premise is …

What is Murabaha? Read More »

What is interest?

WHAT IS INTEREST? A  simple definition of interest would be that, it is the price of money. And the factor that determines the price of money is time.  So for the longer period money is lent the higher is the interest to be paid for it. Sounds reasonable considering that all things have a price, …

What is interest? Read More »