Auto Finance-i Murabahah Tawaruqq

This is a financing facility for the purchase of vehicles for employees of the State Government, Federal Government and selected statutory bodies who can make salary deductions through the Biro Perkhidmatan Angkasa (BPA). All salary deductions through BPA for this financing will be managed by MCCM Resources Sdn Bhd which has a BPA salary deduction code.

The Shariah Concepts applicable are Tawarruq, Murabahah, Wakalah and Wa`d. Tawarruq means an arrangement that involves two sale and purchase contracts. The first involves the sale of the commodity by the Bank to the Customer on deferred payment at cost plus profit basis whereby the purchase price and the sale price are disclosed to the Customer. Subsequently, the Customer will sell the same commodity to a third party on cash and spot basis.
Murabahah refers to a sale and purchase of a commodity where the acquisition cost and the mark-up are disclosed to the Customer.
Wakalah refers to a contract in which a party as principal (muwakkil) authorises another party as agent (wakil) to perform a particular task in matters that may be delegated, with or without the imposition of a fee. In this product, you appoint the Bank as an unrestricted agent to perform the Tawarruq arrangement.
Wa`d is a unilateral promise which refers to an expression of commitment given by one party to another to perform certain actions in the future.

The Tawarruq arrangement shall be arranged as the following:
i. You shall request the bank to purchase the commodity from commodity market and you undertake to purchase the commodity from the Bank (Wa`d).
ii. You shall appoint the Bank as your agent to purchase Shariah-compliant commodity such as Crude Palm Oil (CPO), etc. from the Bank and to sell the commodity to any third party.
iii. The Bank shall sell the agreed commodity to you at the Bank’s Selling Price on deferred payment basis.
iv. As the purchaser of the commodity, you shall have the right to take delivery of the commodity at your own cost and expenses.
v. The Bank shall sell your commodity on your behalf to any third party for a price equal to the Facility Amount.
vi. The proceeds of the sale shall be disbursed to you as per the agreed terms and conditions.