Diminishing Musharakah Application & Documentation

DM - Application
Diminishing Musharakah can be used in the following cases to provide financing to Corporate customers by Meezan Bank. • For long and medium term fixed asset financing like plant, equipment, generators etc. Retail products like Car financing, Durable financing, Home Financing

DM .Both parties share . Bank gives our its share to the customer via this agreement. Factory premises. Diminishing Musharakah Agreement – Islamic Housing Finance Agreement Purpose: This is the main agreement that establishes Bank’s share in the Musharakah Property.Rent Schedule . Monthly Payment Agreement (Rent Agreement) Purpose: This agreement is signed after Main Musharakah Agreement. Warehouses.land which is being purchased by the builders to carry out construction of commercial projects For details please see PDSC Policy 16 & 19.Formula of calculation .Application Commercial Premises include Office premises.Musharakah Property detail 2. Legal Documentation 1. Components: .land or building which is being purchased for the purpose of resale (trading) b. Agricultural land.land which cannot be used for construction or agricultural purposes c. excluding such: a. Components: . Shops.

179 14.179 4.000 40% 600.000 14. Undertaking to Sell Musharakah Units Purpose: This is an undertaking by the Meezan Bank to sell Bank’s Musharakah units in case of early unit purchase.000 10.967 10.625 10.000 590. Components: .354 10.000 10.000 20.108 4.000 10.000 10.000 30.000 60% 8.83 Calulation Based on the Schedule as f Months Rent Unit Price Monthly Payment Balance Unit Price Balance Units 0 1 2 3 4 5 56 57 58 59 60 4.Additional Unit Purchase Price Easy Home .000 570.213 10.038 13. Components: .250 4.000 400.000.Normal Sale Price .038 3. Undertaking to Purchase Musharakah Units Purpose: This is an undertaking by the customer to purchase Bank’s Musharakah units from time to time.Home Buyer House Cost Price Customer Share Bank Share Profit Rate Tenure in Years 1.000 70.000 580.000 10..000 10.000 550.000 40.108 14.000 10.000 560.250 14.Additional Unit Purchase Price 4.Legal Documentation 3.967 354 283 213 142 71 129.000 600.50% 5 Total Units Unit Sale Price Monthly Rent/Unit 60 10.000 10.000 10.000 0 60 59 58 57 56 55 4 3 2 1 - .Normal Sale Price .071 729.625 600.000 10.283 10.142 10.

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