Murabaha Trust Receipt (MTR) is a facility that Bank gives to its Client, usually an importer of the goods. It is basically a short term investment against Trust Receipt that allows the importer to make the payment to the seller. The Bank retains the ownership of the goods. A buyer can get back the ownership after repaying the financing amount.

Key Features

• Bank shall purchase the goods so that ownership of the Bank on the goods is established at least for a moment. The Bank may also engage the investment client as Buying Agent
• There must be three parties in order to perform buying & selling under Murabaha
• Bank
• Supplier of goods
• Purchaser of goods.
• Goods however must not be purchased from client or from any of its sister concern. Goods must also be halal as per Shari’ah.
• A commodity in the true sense of the term must be involved in buying & selling.