Murabahah Revolving Financing (BAM)
WHAT IS THE PRODUCT ABOUT?
A facility to part finance the working capital requirement which includes advances, receivables, pre & post shipment, operating & pre-operating expenditure for all sectors financed, with the following features:
|i.||Minimum :||RM10.0 million|
|ii.||Maximum :||RM500.0 million (Single Customer Limit)|
|iii.||Facility Tenure :||Up to 5 years, subject to annual review and renewable|
|iv.||Disbursement :||Tenure of 30 days; 60 days or up to 365 days|
|v.||Financing Limit :||Up to 85% of each contract value/invoices; or |
Up to 30% of total contract sum
WHAT IS THE SHARIAH CONCEPT APPLICABLE?
The facility is structured based on Tawarruq. It consists of an arrangement of series of sale and purchase contracts. The tawarruq arrangement in this product is via murabahah (disclosure of mark-up above the acquisition cost) form.
The brief structure and flow are as follows:
- Upon request and promise by the Customer to purchase an identified asset, the Bank acquires the asset from a supplier, on cash basis. The Bank is also authorized by the Customer to execute sale and purchase transactions that will be performed afterwards.
- The Bank then sells the asset to the Customer at a Sale Price i.e. Purchase Price with disclosed profit, to be paid on deferred. The Customer is now the owner of the asset pursuant to acceptance by the Bank.
- The deferred Sale Price is payable by the Customer on lump sum or instalment based on the agreed tenure and payment schedule to be issued by the Bank.
WHAT DO I GET FROM THIS PRODUCT?
|i.||Facility Amount/Bank’s Purchase Price (PP)||RM120,000.00|
|ii.||Profit Rate (m) for the disbursement||10.0% pa|
|iii.||Tenure (t) for the disbursement||120 days|
|iv.||Bank’s Sale Price (SP) |
SP = PP(1+ m/100 x t/365)
|RM120,000.00 (1+10/100 x 120/365) |
|v.||Amount of Profit/Mark-up||RM 3,945.21|
*Profit rate will be determined by the Bank at the point of each disbursement, and may vary for different disbursements
WHAT ARE MY OBLIGATIONS?
- To fulfil the promise to purchase he asset to be financed from the Bank.
- Full settlement of the Bank's Sale Price at the maturity of the disbursement tenure.
WHAT ARE THE CHARGES THAT I HAVE TO PAY?
The financing may attract the following fees and charges, whenever applicable:
- Stamp Duties as per the Stamp Duty Act 1949 (Revised 1989)
- Processing Fee
- Changes to the Letter Offer Fee
- Administration Fee
- Legal Fee, as charged by solicitor
- Sales & Services Tax, if applicable
WHAT IF I FAIL TO FULFILL MY OBLIGATIONS?
If the Customer fails to purchase the asset financed, the Bank may claim for any difference between the acquisition price and the disposal price to other third party purchaser.
The Bank may impose a compensation charge on late payment (Ta’widh) at the following rate:
- Ta’widh at 1% per annum on the overdue instalment (where applicable) during the tenure of the facility
- Ta’widh at the prevailing daily overnight of Islamic Interbank Money Market (IIMM) rate or other rates that Bank Negara Malaysia may specify against the outstanding balance if the overdue continues beyond the maturity date of the Facility
Legal action may be taken against you by the Bank if you fail to respond to reminder notices. It may affect your credit rating which may lead to credit being more difficult or expensive to you.
The Bank also retains the following rights:
- Review: the Bank has the right to review and terminate the facility upon occurrence of any events of defaults as agreed in the terms and conditions of the facility.
- Bankruptcy: the Bank has the right to initiate bankruptcy proceedings if the outstanding amount reaches a certain limit.
WHAT IF I FULLY SETTLE THE FINANCING BEFORE ITS MATURITY?
The Bank shall grant Ibra’ (Rebate) under the following circumstances, subject to applicable terms and conditions :
- Early redemption
- Partial redemption/prepay/advance payment
- Facility is not fully disbursed.
Calculation of the Ibra’ (with fixed payment schedule) as per Attachment 1.
DO I NEED A GUARANTOR/SECURITY/COLLATERAL?
The Guarantor as surety shall be liable to BPMB as creditor for the default committed by the Customer being the principal debtor.
WHAT DO I NEED TO DO IF THERE ARE CHANGES TO MY CONTACT DETAILS?
It is important that you inform us of any change in your contact details to ensure that all correspondences reach you in a timely manner.
WHERE CAN I GET ASSISTANT AND REDRESS?
If you have any enquiries with regard to the facility, you may contact:
Level 26, Menara Bank Pembangunan
Jalan Sultan Ismail, Kuala Lumpur
Tel: 03-2611 3110
If you wish to complain about the products and services provided by the Bank, you may contact:
Level 27, Menara Bank Pembangunan
Jalan Sultan Ismail, Kuala Lumpur
Tel: 03-2611 3888
If your query or complaint is not satisfactorily resolved by the Bank, you may contact:
Bank Negara Malaysia LINK or TELELINK
Block D, Bank Negara Malaysia
Jalan Dato’ Onn
50480 Kuala Lumpur
Fax: 03-2174 1515
WHERE CAN I GET FURTHER INFORMATION?
Should you require additional information of the product, please refer to our brochures or our website at www.bpmb.com.my or call 03-2611 3888
OTHER FINANCING ASSET PACKAGE AVAILABLE?
We also provide asset acquisition financing, revolving working capital financing, kafalah Bank Guarantee and also range of capital market products.
IMPORTANT NOTE :
LEGAL ACTION MAY BE TAKEN AGAINST YOU IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR FINANCING.
The information provided in this disclosure sheet is updated on 30 September 2020.