Diminishing Musharaka

To do Shariah-compliant business, we offer Ameen Diminishing Musharakah Product. It is a form of partnership in which UBL Ameen and the customer will jointly purchase a property or asset. This transaction starts with the formation of a partnership (Shirkat-ul-Milk), after which buying and selling of the equity takes place between the two partners. After becoming partners, UBL Ameen will lease out its share to the customer at agreed rentals. The share of UBL Ameen is further divided into a number of units and it is understood that the customer will purchase those units from time to time till the completion of purchasing of units by the customer.

• Creation of joint ownership in the property or asset.
• Leased out the property share of UBL Ameen to the customer on rent.
• Buying of units (share of UBL Ameen) by the customer periodically.

The customers for this kind of Musharaka can be broadly classified into three categories: Multi-national companies, large local corporate and public sector entities that have a need for medium or long-term Musharaka

The typical financing, under Ameen Diminishing Musharakah Product, offered by UBL Ameen is as follows:

• Financing Type : New/Existing (movable and immovable)
• Tenor : Maximum 7 years (including Grace Period)
• Grace period : Allowed
• Payments : Monthly
• Mode of payment : In advance/arrears
• Processing Fee : As per Prevailing SOC
• Documentation Fee : At actual