How do I compare my Murabaha offer correctly?

When comparing two Murabaha transactions, standardize the calculation method: the same asset value, the same down payment, and the same term.

Steps

1. Then compare the final selling price, fees and insurance, early repayment terms, and what happens in case of late payment.

2. A small difference in the installment can mask a significant difference in the total cost.

The figures, fees and limits in this answer vary by bank and change over time — confirm them with your bank or the official source before acting.

Source

• AAOIFI — Sharia Standard 8: Murabahah