​​​​​​​You ask, Muzn answers

Welcome to Muzn’s Frequently Asked Questions (FAQ’s) where you can find answers to questions that might arise as you begin to discover more about Muzn and the benefits of Islamic Banking. Muzn’s Shari’a experts will address your questions and provide the right answers, so please do not hesitate in helping us complement Muzn’s mission of being your trusted banking allegiance.​

Islamic Finance

A form of partnership where one party, called "Rab-ul-Mal (customer)", provides funds, while the other party, called “Mudarib (Islamic bank)”, provides expertise. The profit sharing ratio is determined at the time of entering into, a Mudaraba contract, In the case of loss, it is borne by the Rab-ul-Mal, and in the case of negligence, misconduct or breach of the terms and conditions of the Mudaraba contract by the bank, the bank bears this loss.​

A type of Ijara, where at the completion of an Ijara term, ownership of an asset is transferred from Muzn Islamic Bank, to the customer, either through a Hiba-(gift), or against a nominal sale price. This is a modern Islamic product invented by Islamic Banks to facilitate the customers. An Ijara Muntahia Bittamleek contract includes a promise, from the Islamic Bank independent from the lease transaction, to transfer the leased asset at the end of the lease term to the lessee, as a Hiba-gift or Sale for an agreed nominal price. An example of Muzn Ijara Muntahia Bittamleek Products are Home finance & Term Finance.​

Wakala is the agency relationship between an Agent-(Islamic bank) and a Principal-(Customer), where the principal appoints the agent to perform a certain task on its behalf, in return for a fixed Agency fee. An example of Muzn products of Wakala are Wakala Investment and Flexi Wakala account​

Murabaha is a sale transaction where the seller discloses the cost of goods and an amount of profit margin over the cost. The mechanism of Murabaha is that the Islamic bank, as per the request of the client, purchases the goods, taking the ownership and risks associated with these goods, at which point the goods are sold to the client by disclosing both the cost of the goods and profit margin. Cost plus profit dictates the resulting sale price. The client pays the sale price immediately or through Installments. Therefore, Murabaha is an actual sale transaction, and not a loan given on interest. An example of Muzn products of Murabaha are Murabaha Auto Finance, Murabaha Working Capital finance and Trade Finance products.​​

Ijara means "To transfer the usufruct of a particular property to another person, in exchange for rent”. The property owner is called the Lessor (Mu’jir), the user of the property is called the Lessee (Musta’jir), and the rent payable to the lessor is called ‘Ujrah”. Under Islamic banking, the Islamic bank purchases the leasable asset and transfers the usufruct attached to that asset to another person for an agreed period, at an agreed consideration.​

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