Medium & Long Term Finance

For catering to Balance Sheet requirements under long-term financing, MCB Islamic Bank has an array of medium to long term financing products.

Diminishing Musharakah

The Diminishing Musharakah can be extended to customers in which bank and the customer jointly purchase / own the asset based on Shirkat-ul-Milk. The bank subsequently rents out its share in the Musharakah Asset to the customer. MCB Islamic bank’s share in the asset is periodically purchased by the customer till the ownership of Bank fully diminished.

This is a medium to long term financing facility. This mode is used for financing of fixed assets such as Plant, Machinery, Equipment land, factory, building etc. and movable assets, long term projects, etc.

Ijarah

The Ijarah means “to give something on rent or to provide some services”.

Ijarah (Lease) is an arrangement/contract whereby one party (Lessor usually bank) agrees to transfer the right of use of an asset owned by it to another party (Lessee usually client) for an agreed period at an agreed consideration (i.e. rent).

This Shari’ah Compliant long term facility is utilized by the customer to finance Fixed Assets such as capital expenditure, BMR, Plant, Machinery, Equipment etc.