Mudaraba (Financial Investment)

 

 

Mudaraba Loans

Is it considered as a contract based on which one side (the owner) takes the responsibility of providing a capital so that the other side (the executive), performs a business with that capital and, consequently, the both sides with share the gained benefit.

In order to provide required facilities for developing commercial affairs, Shahr bank, as the owner, provides the capital (source) for doing a business deal for with an executive weather legal or real.

It needs to be noted that a Mudaraba contract concerns internal and external business affairs. Accordingly, the banks are not permitted to make Mudaraba business contracts with private sectors concerning imports. The contract maturity is at most one year from holding the contract until the full settlement.

Essential required documents:

For real Persons:

- The application.

- Business license with a valid trade license permit.

- Original life certificate and ID card with a copy of them.

- A copy of ownership document or the rent contract of business place.

- Valid pledges acceptable by the bank.

- The rest of required documents (which determined depending on the case and after referring to the bank).

For legal persons:

- Application.

- Original life certificate and ID card of the managers and a copy of them.

- A valid trade license that proves the performance of business and trading affairs (buying and selling goods).

- Articles of association.

- Tax returns.

- The latest changes mentioned in the official gazette.

- Audited financial Statements.

- Business cards for imports.

- Valid pledges.

- The other documents, documentations and permits (which are determined after referring to the branch).

Procedure Stages:

1. The application is presented to the bank branch along with the required documents.

2. The application is checked to be approved by the banks authorities.

3. The pledge is received.

4. The Mudaraba contract is made.

5. The approved loan check is issued.