Murabaha explained: buying on credit without interest
AmanaFi team · Updated · 1 min read
Murabaha is a sale with a declared margin: the financier buys the asset you want, then resells it at cost plus an agreed margin, payable later. The difference from a loan is that there is a real sale of a real asset.
The steps
The classic scheme has several stages, which must be respected in order.
- You choose the asset (car, equipment).
- The financier buys it and becomes its owner, with its risks.
- It resells it to you at cost plus a known margin.
- You pay in one go or by instalments, and the price does not change if you are late.
What sets it apart from an interest-bearing loan
The total price is fixed at the sale and does not grow with time. The margin rewards the sale and the risk carried by the seller, not the mere fact of lending money. To be valid, the financier must actually hold the asset before reselling it.
Points to watch
Compare the total margin with the cost of other offers, read the contract and ask who holds the asset at each stage. Check late fees: some penalties are treated as charity paid out rather than as income. Ask for the opinion of the bank's compliance board.
Frequently asked
Is a murabaha cheaper than a conventional loan?
Not necessarily. The total cost depends on the agreed margin and fees. Always compare the total price to pay between offers.
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