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Musharkah LC

Musharkah LC

Musharakah LC

​Musharakah LC is a competitive Islamic short term post shipment financing provided to importers to settle their Sight/ Usance L/C.Musharakah functions like a limited partnership between Bank Albilad and customers who need to import certain goods and equipment, but do not possess sufficient funds to do so.  In this type of transaction, the customer provides a portion of the funds and Bank Albilad provides the remaining funds.  Bank Albilad then issues LCs to import the goods. 

Conventional LC 

A Letter of Credit or L/C is a written undertaking by a bank (issuing bank) on behalf of an importer (the customer) that payment will be made for goods or services supplied by an exporter (the beneficiary) provided that the exporter complies with all the terms and conditions established by the credit


Musharkah Letter of credit types of payment

  • Sight L/C: Bank Albilad will pay the negotiating bank on receipt of documents and sell its share in the goods to the customer on deferred payment terms
  • Usance L/C: Bank Albilad will sell its share in the goods to the customer on deferred payment terms for an agreed period beyond the maturity due date

​Features & Benefits

  • Improving cash flow position for importer by allowing them to process/sell the imported goods to their end buyer and defer their payment to the bank
  • Our Islamic Import Financing is tied to your underlying imports in such a way that we maintain full Shariah compliance at all times.
  • Bank Albilad gives you the quick issuance of Letter of credit to help you meet your deadlines.
  • Issuing Letter of credit to or from your business partners at the local and international levels


Terms and Conditions 


 Terms and Conditions Of Musharakah LC
  • Commercial registration and National ID/Iqama.
  • The applicant must have an account at Bank Albilad.
  • Filling the Musharaka application form.
  • Depositing the Musharaka share.
  • Signing the Musharaka contract. 

 Terms and Conditions Of Conventional LC
  • Commercial registration and National ID/Iqama.
  • The applicant must have an account at Bank Albilad.
  • Filling the letter of credit application form.
  • Depositing the amount (the letter of credit value) in the account.
  • Initial invoice (If available). 


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