If I pay off the Murabaha early, am I entitled to a discount on the remaining profits? | Ask Banky

Editor-in-Chief Mohamed Salah

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Editor-in-Chief Mohamed Salah

If I pay off the Murabaha early, am I entitled to a discount on the remaining profits?

Asked by Banky team 2 months ago
Banky team Reviewed editorial answer

Don't assume that the discount is automatically granted on your own.

Key points

  • Early repayment is handled according to the contract, bank policy, and applicable Sharia principles.

  • The bank may offer a discount without it being a pre-guaranteed condition that alters the nature of the contract.

  • Practically speaking, ask for the "early repayment settlement amount today" in writing and compare it to the total remaining installments before making your decision.

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