Glossary › Murabaha
What is Murabaha?
An Islamic cost-plus financing structure where the bank resells an asset to you at a transparent profit margin.
In Murabaha, the bank buys the asset and sells it to you at a disclosed markup, paid in fixed installments — no interest. It's common for home and asset finance in Islamic banking.
Example
Asset ₹25,00,000 + 20% margin, repaid over 15 years in fixed installments.