Your cooperative buys the asset. You repay a fixed cost, not interest.
Murabaha is a cost-plus sale: the cooperative purchases the equipment, vehicle or stock a member needs, then resells it to them at a markup agreed once, upfront, in full. No compounding, no penalty rate, no interest — a fixed price for a real asset, cleared by three separate approvals before a naira moves.
A sale, structured to replace a loan
In conventional financing, a lender advances cash and charges interest on the balance. Murabaha never advances cash to the member at all. The cooperative takes ownership of the actual asset first — a generator, a tricycle, a grinding machine — then sells it on to the member at cost plus an agreed profit margin, repayable in instalments.
Because the markup is fixed at the point of sale, the member knows the exact total they will repay from day one. It cannot grow if a payment is late, and it is never expressed as a percentage rate over time — the two features that make an arrangement interest-bearing.
Equipment financing request #MUR-884
Request to disbursement, in four steps
1. Submit the request
Name the asset, its cost, the vendor, and the term you want to repay over.
2. Three-tier approval
Executive, then auditor, then the Sharia board — each recorded on the ledger.
3. Purchase confirmed
The cooperative pays the vendor directly and takes ownership of the asset.
4. Repay on schedule
Fixed instalments against the agreed total — nothing changes once it's signed.
What governs a Murabaha request
- Markup is fixed and disclosed upfront — it never compounds
- Eligibility is tied to twice the member's combined shares and savings
- Financing ceiling scales with the member's KYC tier
- Back a request with physical collateral, or a co-member pledging shares
See the whole approval chain
Murabaha financing sits inside a cooperative’s wider governance and compliance tooling — the roles, the audit trail, the KYC tiers that decide who can borrow how much.